Legislation would shield Michigan workers, consumers, and natural resources from impact of data center projects
LANSING, Mich. (June 18, 2026) — As the growing data center industry sparks concerns for consumers, environmentalists, and communities across the state, Democratic legislators introduced legislation today, spearheaded by Sen. Rosemary Bayer (D-West Bloomfield), to ensure the sustainable development of these facilities and protect Michigan ratepayers, workers, and natural resources.
“With the astronomical rates of electricity and water that large-scale data centers consume, Michiganders are understandably concerned about the prospect of these developments coming to their community,” said Sen. Bayer. “I’m proud to introduce legislation that responds to these concerns, taking a multi-pronged approach that protects Michigan workers and ratepayers while mitigating the impact on our state’s cherished natural resources.”
Also sponsored by Sens. Mallory McMorrow (D-Royal Oak), Kevin Hertel (D-St. Clair Shores), and Darrin Camilleri (D-Trenton), this legislative package would:
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Senate Bill 1046 (BAYER): Establish permitting requirements and public hearing guidelines for individuals who use over 550,000 gallons of water per day for consumptive use. It also enables the Michigan Dept. of Environment, Great Lakes, and Energy (EGLE) to monitor wastewater discharged from data centers.
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Senate Bill 1047 (MCMORROW): Ensure Michigan residents and businesses’ electricity bills and service would not be impacted, require utilities to create a separate rate class for large-load customers, ensure they use clean energy, and limit operations during an energy emergency.
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Senate Bill 1048 (HERTEL): Create labor protections for data center development, such as ensuring a union wage is paid, and a labor or collective bargaining agreement is made for the construction and operation of the facility.
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Senate Bill 1049 (CAMILLERI): Prohibit public employees and public officers from entering into non-disclosure agreements with data centers under certain conditions.
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Senate Bill 1050-51 (CAMILLERI): Require an agreement between data center owners or operators and the local community prior to construction, ensuring the facilities will benefit residents’ health, safety, and general welfare, as well as the natural resources that surround them.
“Data centers are going up across the country faster than people can keep up. The question is whether Michigan sets the terms, or whether someone else sets them for us,” said McMorrow. “My colleagues and I have spent months listening to constituents across this state, and the message is the same everywhere: they’re worried about their energy bills, their water, and the sense that decisions this big are being made to their communities instead of with them. So we drew a hard line. Under my bill, no Michigan resident will pay a single cent more because a data center came to their community. Period. The companies cover the full cost of their projects — whether they last or not, they pass a thorough review before breaking ground, and they ramp down during peak demand without firing up diesel generators.”
“Technological advancement is inevitable, but whether it comes at the expense of our communities and environment is up to us. Here in Michigan, we’re choosing to build the economy of the future in a way that safeguards our environment and ensures working people share in its success,” said Sen. Hertel. “With this legislation, we’re proving that business and environmental interests do not have to be competing priorities, but can work together to create communities with access to fresh air, clean water, and good-paying jobs that allow the benefits of these projects to reach the middle-class families whose hard work makes this progress possible.”
“The people of Michigan deserve not only to know the details of these deals, but also to share in the benefits they create,” said Sen. Camilleri. “My bills accomplish both goals by prohibiting public officials from signing non-disclosure agreements that keep communities in the dark about these projects, while also requiring tech companies to enter into community benefit agreements that ensure local residents see real investments and opportunities in return.”
This legislation builds on the previous efforts of other Democratic senators to regulate the swiftly growing hyperscale data center industry in Michigan. Introduced by Sens. Sue Shink (D-Northfield Twp.) and Erika Geiss (D-Taylor) in December of last year, Senate Bill 762 would ensure transparency regarding the total energy expenditures and water usage of data centers, and Senate Bill 763 would prevent infrastructure improvement costs from being passed to residential ratepayers.
This legislation has been referred to the Senate Committee on Energy and Environment for consideration.
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