Michigan Senate Democrats push for stricter data center energy, worker rules

Michigan Senate Democrats have introduced an eight-bill package aimed at implementing stricter regulations for hyperscale data centers across the state. The legislation, much of which was introduced on Thursday, seeks to address potential impacts on ratepayers, the environment, and workers. State Sens. Rosemary Bayer, D-West Bloomfield, and Kevin Hertel, D-St. Clair Shores, stated the bills promote transparency, accountability, and community benefits, rather than limiting data center construction.

Governor Gretchen Whitmer expressed support for the ongoing legislative discussions, emphasizing the need for a robust framework to maintain Michigan's competitiveness in attracting transformational projects like the "The Barn" complex, a $56 billion hyperscale data center currently under construction in Saline Township by Oracle and Related Digital. This project is anticipated to be Michigan’s first hyperscale data center and is slated to open in 2028.

The proposed bills, referred to the Senate Committee on Energy and Environment, include requirements for annual MPSC (Michigan Public Service Commission) reports on data center water usage and energy consumption starting in 2027. They also aim to prevent companies from passing water infrastructure upgrade costs to residential customers. Notably, addressing noise pollution, a concern for residents, was not included in the initial package but is under consideration. Environmental groups, including the Sierra Club and the Michigan Environmental Justice Coalition, have voiced strong support for the legislation, asserting that companies should bear the costs they create and residents deserve protection from affordability and reliability compromises.