Michigan's Move: New Laws to Control Data Center Growth

Michigan is taking steps to manage the rapid expansion of data centers. Three new bills aim to control water use, transparency, and costs linked to these large facilities. The legislation comes as more people in Michigan express worries about the impact of data centers on their communities. The bills were introduced on December 18. They focus on issues like water consumption, energy use, and infrastructure costs. Lawmakers from both parties support these bills, showing a shared concern for the state's resources and residents. Senate Bill 761 targets water use. It bans permits for any project that withdraws over 2 million gallons of water daily for use that doesn't return to the system. This is a direct response to the massive water needs of large data centers. Senate Bill 762 requires the Michigan Public Service Commission to release yearly reports. These reports will detail the energy and water usage of data centers. This move aims to keep the public informed about the true costs and impacts of these facilities.Senate Bill 763 prevents data centers from passing infrastructure costs to residential ratepayers. This bill seeks to protect households from unexpected increases in their utility bills. The push for these bills comes as data centers pop up in various Michigan towns. Projects in Saline, Battle Creek, and Mason have sparked local concerns. The Saline Township data center, for example, is a massive 1. 4-gigawatt project planned for farmland. It's intended for companies like OpenAI and Oracle, highlighting the growing demand for AI and cloud computing services. Critics argue that data centers bring jobs and economic benefits. However, opponents worry about the environmental and financial toll. The new legislation aims to balance these interests, ensuring that data center growth doesn't come at the expense of Michigan's residents and natural resources. Lawmakers hope these bills will address issues seen in other states. Places like Arizona and New Jersey have faced problems with data center expansion. Michigan wants to be proactive, preventing similar issues before they arise.