Proposed Michigan bills would regulate how local governments handle data centers

A package of two bills, House Bill 5881 and House Bill 5882, has been introduced in the Michigan House of Representatives, seeking to establish the Data Center Planning and Responsibility Act. Led by Representative Reggie Miller, D-District 31, and co-sponsored by two other Democrats, the legislation aims to regulate how local governments can impose moratoriums on large-scale data centers and cryptocurrency mining facilities across Michigan. The proposed act would permit temporary halts on new projects but with strict new rules. Moratoriums would need to be adopted by ordinance or resolution at a public meeting, initially lasting no more than six months, with a single possible extension of up to 90 days. During a moratorium, local governments would be barred from accepting or approving zoning-related applications for affected projects. They would also be required to conduct detailed studies on impacts such as fire response, power grid strain, water systems, and economic effects, while actively involving the public through meetings and community input. Furthermore, the bills would mandate midpoint progress reports and a final comprehensive evaluation from local governments. Based on these findings, officials could propose and adopt new zoning ordinance changes. The legislation also enables local governments to require project owners or operators to reimburse expenses for studies and inspections. The Michigan Public Service Commission would be tasked with defining "large-scale data centers" by setting thresholds based on electricity usage and infrastructure investment, considering potential impacts on the utility system and ratepayers. The introduction of these bills follows rallies held across the state, including one in Detroit, protesting against AI data centers.