On December 16, 2015, Switch CEO Rob Roy said the company would proceed with a Michigan data-center campus after state lawmakers approved legislation creating tax breaks for qualifying data-center activity. The plan centered on the former Steelcase Pyramid near Grand Rapids. Switch did build the campus and expand it—but the original investment and job figures were projections, not confirmed results.
What did Switch announce on December 16, 2015?
The Michigan House had approved data-center tax legislation, sending the bill to Governor Rick Snyder for signature. Rob Roy, Switch’s founder and CEO at the time, told Data Center Knowledge that the company was proceeding “100 percent” with its Michigan plans. The project had been contingent on the legislation passing, so the “go” referred to a company commitment after legislative approval—not to an already completed or operating campus. The 2015 announcement and legislative context
What was Switch planning to build?
The proposal was for a campus in the Grand Rapids area, in or near Gaines Township and Kent County. Switch planned to adapt the basement of the pyramid-shaped former Steelcase building and construct additional data-center buildings around it.
- Original full-campus concept: approximately 2 million square feet, potentially spread across six buildings.
- Proposed schedule: a build-out lasting as long as 10 years.
- Original construction estimate: Switch said work would begin with about $400 million in construction spending and could exceed $2 billion over the longer build-out.
- Original employment estimate: Switch projected more than 1,000 IT jobs in Gaines Township and cited wages of about $60,000 to $200,000.
The spending, scale, job count and wages were company projections. They should not be read as verified totals ultimately achieved. The original campus concept and Switch’s construction announcement and projections
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Why did Switch say it needed the tax incentives?
Roy said Michigan needed the incentives to compete with other states seeking data-center investment. At the time, more than 20 states offered data-center tax incentives, according to the 2015 report. The competition mattered because operators and their customers buy expensive servers, computers, networking and storage equipment, as well as power and cooling infrastructure. Tax treatment of qualifying equipment purchases can influence a project’s operating costs.
That explains Switch’s stated business case; it does not independently prove that the incentives were the only reason the project went ahead. Whether a particular investment would have happened without a tax break is difficult to establish. A 2026 Citizens Research Council of Michigan report notes that this additionality question is a challenge when evaluating data-center tax exemptions. 2015 account of Switch’s position; Citizens Research Council report
What did the 2015 tax package actually do?
The enacted package provided sales- and use-tax incentives for qualifying data-center activity. It was not a blanket promise that the entire campus or every tax associated with it would be tax-free. Earlier drafts included a proposed personal-property-tax break, but that provision was omitted from the final bill. Local governments retained the ability to exempt individual data-center users from personal property taxes.
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The 2015 report also described a job-based sunset: the sales- and use-tax breaks would end if Michigan’s data-center industry did not create at least 400 jobs by 2022 and 1,000 jobs by 2026. Those thresholds were conditions attached to the state-level tax provisions, not a guarantee that Switch itself would hire those numbers. The distinction matters: the law’s industry-wide triggers, Switch’s campus projections and local property-tax decisions were separate matters. 2015 report on the final legislation
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Did Switch build and open the campus?
Yes. Switch later opened the first phase of Switch GRAND RAPIDS, converting the Pyramid into a data center with more than 225,000 square feet of data-center space. Switch described the phase as having a Tier IV Gold-rated design. At the same time, the company said development and permitting were underway for a separate 471,248-square-foot building, Switch GRAND RAPIDS 1. These phase-specific figures are not the same as the original approximately 2-million-square-foot full-campus concept. Switch’s opening announcement
Switch reported that more than 700 people worked during the accelerated construction and development schedule and that nearly 99 percent were Michiganders. That is construction-period employment, not a count of permanent data-center staff. The company also said it expected expansion to continue for at least 10 years. Switch’s opening announcement
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Did the campus attract customers and keep expanding?
Switch later announced a large colocation agreement with Consumers Energy, saying 90 percent of the Pyramid’s second sector had been sold ahead of schedule and work had begun on the next sector. Consumers Energy said the arrangement would support its IT infrastructure and renewable-energy objectives. Switch described the campus as a connectivity hub serving Chicago, New York and other northeastern U.S. markets. This follow-up is evidence of customer demand and continued development, although it does not establish the project’s total realized investment or its complete occupancy. Switch and Consumers Energy on the agreement
What do the job figures show—and what do they not show?
The employment numbers refer to different things and cannot be compared as though they were a single headcount series. Switch’s more-than-1,000 figure was a forecast of IT jobs for the planned campus; its more-than-700 figure described people employed during construction and development. Neither establishes the number of permanent operating jobs at the facility.
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A 2026 Citizens Research Council report says Switch’s Pyramid facility reported 26 jobs with average annual compensation of $58,000 in 2023. The report also says the campus grew from approximately 10 megawatts to more than 300 megawatts. It cautions that staffing does not rise in direct proportion to data-center capacity: these facilities can add substantial power and computing capacity without adding workers at the same rate. The 26-job figure concerns reported employment at the Pyramid facility in 2023; it should not be treated as a count of all construction work, all tenant employment, or every indirect regional effect. Citizens Research Council report
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The project’s record therefore has more than one dimension. It became a real, expanding infrastructure campus, supported construction activity and attracted a major Michigan customer. The later operating-employment figure is also a reminder that a large capital project can have modest permanent staffing relative to its construction footprint or capacity. The 2026 council report says local economic activity may decline substantially after construction ends, making construction jobs and enduring operating jobs important to distinguish.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How should Michigan weigh the tax deal?
The central public-finance question is whether the investment and wider economic benefits justified the tax revenue forgone—and whether the project would have located in Michigan without the exemption. Switch argued that incentives were necessary to compete, but a company’s statement about its own decision is not a counterfactual analysis. The available figures establish that the project was built and later expanded; they do not by themselves calculate the tax expenditure or prove a net fiscal return for Michigan or local governments.
For a careful evaluation, keep separate the construction activity, permanent facility jobs, tenant activity, broader regional effects and public revenue effects. They answer different questions. The Public Sector Consultants report commissioned by the Michigan Chamber discusses economic impacts and policy considerations, while the Citizens Research Council highlights the difficulty of assessing employment and whether incentives changed an investment decision. Neither makes the Switch project’s complete public return reducible to one job count. Public Sector Consultants report; Citizens Research Council report
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Why does the 2015 decision matter to Michigan now?
Switch’s campus is an early Michigan example of the trade-offs now facing states as data-center and AI infrastructure grows. A project can bring substantial construction and technology investment while requiring careful scrutiny of permanent jobs, tax exemptions, electricity demand and who pays for grid upgrades. The scale and customers of one campus do not establish what another proposal will deliver.
In July 2026, Governor Gretchen Whitmer’s data-center action plan emphasized that companies should bear costs directly attributable to their energy demand, secure additional power when needed and use long-term utility commitments that protect other ratepayers. The state’s current debate also addresses grid capacity, water, environmental oversight and consumer protection. Those policies are later developments, not terms of Switch’s 2015 deal. Michigan’s July 15, 2026 data-center action plan; July 16, 2026 announcement on company commitments
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