Michigan Senate Democrats propose data center restrictions
Michigan Senate Democrats have proposed a comprehensive package of eight bills aimed at regulating data center developments statewide, addressing concerns about environmental impact and resident costs. The legislation seeks to cap water usage, prevent electricity rate increases for other customers, and mandate community benefits agreements. This move follows public opposition to a large data center project in Saline Township involving Oracle and OpenAI.
Michigan Senate Democrats have introduced an eight-bill package aimed at regulating data center developments across the state, citing environmental and resident protection concerns. State Senator Mallory McMorrow (D-Royal Oak), a U.S. Senate candidate, highlighted the proposed policies as potentially the nation's most robust, capping water usage at 2 million gallons per day, preventing electricity rate hikes for other customers, and mandating community benefits agreements for host localities.
The legislative push follows controversy surrounding state regulators' December approval of contracts between DTE Energy Co. and Oracle Corp. for a $16 billion data center development in Saline Township, a project also involving OpenAI. This 250-acre facility is projected to consume 1.4 gigawatts of power, sparking local opposition that proceeded despite residents' concerns. Senator Darrin Camilleri (D-Trenton) emphasized that community benefits agreements would ensure local consent for future projects.
Additional proposals include banning non-disclosure agreements for public officials related to data centers and requiring annual reports from the Michigan Public Service Commission on data center water and energy consumption. While the bills face a split legislature, with the Democratic-led Senate needing Republican House approval to reach Democratic Governor Gretchen Whitmer's desk, House Speaker Matt Hall expressed support for some regulations like closed-loop systems and assurances against energy rate increases. Concurrently, Michigan GOP Chairman State Senator Jim Runestad of White Lake Township has advocated for a 365-day moratorium on all data center projects in the state, emphasizing the need for proper scrutiny.