Michigan Senate Leaders Propose New Rules to Protect Residents from Big Tech Data Center Costs

LANSING, MI – Michigan Senate leaders have prepared a four-bill package to regulate data centers. The bills, introduced today, shield families from the massive energy, water, and financial impacts of these giant facilities. While advocates note that more safeguards are still needed to keep big tech from driving up local water bills, the package marks a major step forward for consumer protection.

The following is a statement from Derrell Slaughter, Michigan Policy Director, Climate & Energy, at NRDC (Natural Resources Defense Council):

“Michigan families should not have to pay higher electric bills to power Big Tech. Data centers consume immense amounts of electricity, and without strict rules, everyday ratepayers will end up subsidizing that massive grid expansion. This new bill package sets up vital requirements that these giant tech facilities pay their own way and commit to long-term contracts, while also protecting our local water and workers.

“This package positions Michigan as a national leader in smart, practical data center regulations. It shows that state leaders understand the urgent need to protect consumers and grid stability. We must hold tech companies accountable so that Michigan’s energy system works for everyone, not just wealthy corporations.”

Data Center Bill Package Highlights Include:

• Protecting Utility Customers (S06377): Forces data centers to cover their own massive energy footprints. It requires them to sign 20-year contracts and pay for at least 90% of their peak power capacity, whether they use it or not. It also requires up-front financial collateral and exit fees, so ratepayers aren't stuck with the bill if a data center closes.
• Good Jobs and Labor Standards (S06805): Requires strong labor standards and project labor agreements for data center construction, making sure these large projects support local workers.
• Protecting Clean Water (S06575): Regulates how much water data centers can pump and use, protecting Michigan’s lakes and drinking water from being drained by tech cooling systems.
• Stopping Secret Deals (S07198): Bans public officials from using strict non-disclosure agreements (NDAs) for data center projects, ensuring communities are not kept in the dark about big tech deals.

NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd).