Michigan is poised to tackle the environmental footprint of its burgeoning data center industry with a new legislative package. The state’s recent tax incentives have spurred a wave of proposals for data centers, which, while integral to the infrastructure of emerging technologies like artificial intelligence, are notorious for their high consumption of resources.
In response, Senators Rosemary Bayer (D-West Bloomfield), Sue Shink (D-Northfield Twp.), and Erika Geiss (D-Taylor) have introduced a trio of bills aimed at mitigating the environmental effects of these facilities. The legislation seeks to establish a regulatory framework to address their substantial energy and water demands.
Two of the proposed bills specifically target water usage. One aims to cap large-scale water withdrawals by disallowing permits for facilities that plan to use over two million gallons of water daily for purposes that do not return water to the system. The second bill seeks to shield taxpayers from the financial burden of infrastructure expansions needed to accommodate these increased water withdrawals.
The third bill mandates the Michigan Public Service Commission to produce annual reports on the water and energy consumption of data centers, ensuring transparency and informed oversight.
The senators articulated their motives in a statement: “Given increasing public interest, reports of massive water and energy usage, projections of infrastructure upgrade requirements, and the simple need for transparency in a rapidly expanding industry, Senate Bills 761-763 aim to address concerns shared by many Michiganders.”
This legislative effort arrives as the Michigan Public Service Commission has just approved a contentious utility agreement with DTE Energy for the state’s inaugural hyperscale data center in Saline Township. The expedited approval process faced criticism, notably from Michigan Attorney General Dana Nessel, who argued that a thorough public review was bypassed. Nonetheless, the commission assures that the contract includes measures to prevent rate increases for consumers.
The proposed bills, which reportedly have bipartisan backing, are currently under review by the Senate Committee on Energy and Environment. As Michigan navigates its role in the data center boom, these legislative measures could set a precedent for balancing technological advancement with environmental stewardship.
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