Data Centers
Michigan Data Center Legislation Targets Energy Use and Community Benefits
July 15, 2026 | Kim Miller
Michigan Democrats introduced a comprehensive package of bills regulating data center operations, including requirements for community benefit agreements, energy procurement standards, and water use restrictions. The proposed legislation would require data centers to enter into legally binding community benefit agreements with local governments before receiving site plan approvals or interconnection permits, addressing topics like local hiring, water use, and infrastructure costs. Michigan lawmakers are considering competing energy bills, with the Senate version requiring 90% clean energy procurement and 20-year utility contracts, while the House bill establishes a new rate class with less stringent requirements. Twelve states have considered legislation this year requiring data centers to use closed loop cooling systems, a technology that reduces water consumption in facilities that can use up to 5 million gallons daily. The legislative package notably excludes data center moratorium provisions, though separate bills addressing tax incentives remain under consideration in Michigan.
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