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Regbase

The Data Center Divide

Ingham County

For Ingham County, see Michigan’s statewide laws and regulations below. No additional county-specific measures are listed in our research.

Mixed Data Center Policies

Michigan offers equipment tax breaks to qualifying data centers, but some require major investment, job, water, and clean-energy commitments. Large electricity users also face separate rates, fees, and cost reviews; some must accept long contracts and minimum payments.

Incentives

Tax benefits
2

Exempts qualifying data-center equipment sales for qualified data centers, colocated businesses and their construction contractors. Expands the exemption to certified enterprise data centers and their contractors through 2050, or 2065 for qualifying brownfield or former power-plant sites.

Michigan Compiled Laws § 205.54ee, Data Center Equipment Sales-Tax Exemption

Creates a use-tax exemption for data center equipment purchased by certified enterprise data center entities, their affiliates, and qualifying construction contractors through 2050, or 2065 for specified brownfield and former power-plant sites.

Michigan MCL 205.94cc — Data Center Equipment Use-Tax Exemption (2024)

current law · Statewide
Exempts qualifying data center equipment from Michigan sales tax through 2050 (or 2065 for certain sites), with enterprise centers required to meet investment, job, energy, water, and reporting standards.Michigan Compiled Laws § 205.54ee, Data Center Equipment Sales-Tax Exemption

What this means

The measure offers a substantial sales-tax break on qualifying equipment, which can lower the cost of building or expanding data centers through 2050, or 2065 for certain sites (equipment sales are exempt). The newer enterprise-center exemption is limited to projects meeting major investment, job, water, and clean-energy conditions, so the benefit is meaningful but not available to every facility (eligibility requirements).

People behind it

  • Listed as a sponsor of House Bill 4906.

  • Listed as a sponsor of House Bill 4906.

  • Listed as a sponsor of House Bill 4906.

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  • Listed as a sponsor of House Bill 4906.

  • Listed as a sponsor of House Bill 4906.

  • Listed as a sponsor of House Bill 4906.

  • Listed as a sponsor of House Bill 4906.

  • Listed as a sponsor of House Bill 4906.

  • Listed as a sponsor of House Bill 4906.

  • Listed as a sponsor of House Bill 4906.

  • Administers the enterprise data center certificate process, reviews applications, receives annual reports, and may revoke certificates.

  • Its employees may be designated by the Michigan Strategic Fund to help review certificate applications.

  • Receives certificates and reports and handles repayment of exemptions following certificate revocation.

  • Gather and certify employment figures used to assess continuation of the qualified data center exemption.

Restrictions & requirementsHide restrictions & requirements15

  • To claim the enterprise-data-center exemption, an applicant must obtain an MSF certificate and affirm that the facility is expected to meet all eligibility criteria within no more than six years. The certificate sets the compliance period, capped at six years. The application and certification requirements.

  • An enterprise data center must make and maintain at least $250 million in qualifying aggregate capital investment in Michigan. The minimum investment requirement.

  • The qualified entity and its affiliates must create and maintain at least 30 new full-time Michigan jobs, each paying at least 150% of the applicable prosperity-region median wage. The jobs must be maintained through 2050, or through 2065 for qualifying brownfield or former power-plant sites. The job and wage criteria.

  • A facility generally cannot receive state or local property-tax benefits through 2050, or 2065 for qualifying brownfield or former power-plant sites, unless the governing body of every affected local government approves the benefit by resolution. The property-tax limitation and local approval exception.

  • Within three years after being placed in service, the facility must attain certification under at least one of the listed green-building standards. The three-year certification requirement.

  • When placed in service, the facility must use municipal water from a municipal system with available capacity to serve it. The municipal-water requirement.

  • To claim the exemption, the facility must procure or commit to procure qualifying clean energy equal to 90% of its forecast annual electricity use, using a statutory demonstration method. The 90% clean-energy requirement.

  • The facility cannot take service under specified electricity rates: the long-term industrial load rate except under the stated post-January 1, 2024 resource and rate conditions; rates approved in MPSC cases U-21160, U-21163, or U-21646; or any rate that makes residential customers subsidize its service costs. The prohibited-rate conditions and exception.

  • An exemption purchaser may claim the enterprise-center exemption only while the facility’s certificate is in good standing. The certificate-in-good-standing condition.

  • The exemption covers only the equipment listed in the statute, including specified computing, power, and environmental-control equipment and certain construction materials; third-party equipment used to supply the qualified data center’s primary power is excluded. The equipment definition and exclusion.

  • Qualified entities must file annual reports on exempt purchases, employment, tax withholding, capital investment, and other required information; the reports are subject to audit. Contractors claiming the exemption must also submit annual purchase summaries and keep supporting records for four years. The reporting and recordkeeping requirements.

  • The MSF guidelines set fees for the certification and compliance process: a $50,000 application fee, an annual administrative fee of 0.25% of the minimum investment required, and $7,000 per amendment or transfer; they also specify late-reporting and late-payment fees. The listed administrative fees.

  • The MSF must revoke a certificate if the facility no longer qualifies. Revocation requires advance written notice and an opportunity to respond; during the notice period, no one may continue claiming the certificate-based exemption. Repayment generally includes the exemptions claimed by all persons plus interest; after ten years, the MSF may allow a lower repayment, but not below 50% of the exemptions. The revocation, pause, and repayment rules.

  • The MSF cannot issue new enterprise-data-center certificates after December 31, 2029; certificates already in effect on that date are not affected. The certificate-issuance cutoff.

  • For the separate qualified-data-center exemption, continuation after January 1, 2022 requires at least 400 qualifying industry or related jobs established in Michigan since January 1, 2016; continuation after January 1, 2026 requires at least 1,000 such jobs. The job thresholds for continuation.

Benefits & exceptionsHide benefits & exceptions5

  • The existing sales-tax exemption for specified data-center equipment covers sales to qualified data centers, colocated businesses, and contractors installing equipment as part of a qualified data center, through December 31, 2050. Its continuation is subject to reported job thresholds: at least 400 qualifying industry or related jobs after January 1, 2022, and at least 1,000 after January 1, 2026. The exemption runs through December 31, 2050.

  • A separate sales-tax exemption covers specified equipment bought by a qualified entity or its affiliates for an enterprise data center, and equipment bought by contractors to be affixed to or made part of one. The exemption runs through 2050, or through 2065 for qualifying brownfield-plan or former power-plant sites. The qualified entity must have a certificate in good standing when the equipment is sold, and no new certificates may be issued after December 31, 2029. Sales of equipment to an enterprise data center are exempt.

  • The Michigan Strategic Fund must review a complete and correct enterprise-data-center certificate application and issue a certificate or give written reasons for denial within 120 days. Not later than 120 days.

  • An enterprise data center may demonstrate that it meets the 90% clean-energy requirement through qualifying on-site renewable generation, a long-term contract with the serving utility, or a voluntary green-pricing program. Utilities must identify and, if necessary, develop mechanisms to support that demonstration. For qualifying long-term contracts, the facility need not bear transmission-upgrade costs that would otherwise be allocated to other customers through generally applicable rate-making. Several ways to demonstrate the clean-energy requirement.

  • Although enterprise data centers generally cannot receive state or local property-tax benefits, the restriction does not apply when every affected local government approves the benefit by resolution. It also excludes certain brownfield-plan tax capture already approved and in effect when the certificate application is made. Local approval can allow a property-tax benefit.

Sources

current law · Statewide
Creates a sales and use tax exemption for certified Michigan data centers that meet investment, job-creation, clean-energy, water-capacity, and green-building requirements.Michigan MCL 205.94cc — Data Center Equipment Use-Tax Exemption (2024)

What this means

The measure offers a substantial tax break on equipment, which can lower the cost of building and operating qualifying data centers (equipment exemption). But it applies only to projects meeting demanding conditions, including at least $250 million in investment, job targets, and clean-energy and water requirements (eligibility criteria); overall, it strongly encourages large projects without easing requirements for all data centers.

People behind it

  • Identified as a sponsor of Senate Bill 237 and one of the senators who introduced it.

  • Identified as a sponsor of Senate Bill 237 and one of the senators who introduced it.

  • Identified as a sponsor of Senate Bill 237 and one of the senators who introduced it.

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  • Identified as a sponsor of Senate Bill 237 and one of the senators who introduced it.

  • Identified as a sponsor of Senate Bill 237 and one of the senators who introduced it.

  • Identified as a sponsor of Senate Bill 237 and one of the senators who introduced it.

  • Administers the certification and compliance process, including reviewing applications, issuing certificates, receiving annual reports, and revoking certificates when required.

  • Receives certificates and reports from the Michigan Strategic Fund and receives repayment of exemptions and interest following revocation.

  • Its employees may be designated to assist the Michigan Strategic Fund in reviewing certificate applications.

  • Gather employment figures for the existing data-center exemption, which are certified and reported to the Michigan Strategic Fund.

Restrictions & requirementsHide restrictions & requirements13

  • To claim the exemption, an applicant must obtain an MSF certificate first; purchases made before certification are not eligible. The application must affirm that the facility is expected to meet the requirements within no more than six years, and the certificate sets the applicable schedule. A certificate must be in good standing.

  • A facility must represent at least $250 million in qualifying aggregate capital investment and create and maintain at least 30 new full-time Michigan jobs paying at least 150% of the region’s median wage. The jobs must be maintained through 2050, or 2065 for specified brownfield or former power-plant properties. Not less than $250,000,000.

  • The facility generally cannot receive state or local property-tax benefits through 2050, or 2065 for specified properties, unless the governing body of every affected local government approves the benefit by resolution. An exception applies to certain qualifying brownfield tax capture already in effect when the certificate application is made. Each local unit of government affected.

  • When placed in service, the facility must use municipal water from a system with available capacity to serve it, and the entity claiming the exemption must certify compliance. Municipal water system that has available capacity.

  • The facility must procure clean energy equivalent to 90% of its forecast annual electricity use. The statute allows on-site renewable generation, a qualifying long-term utility contract, or participation in a voluntary green-pricing program; the contract route must ensure the facility’s service costs are not passed on to other utility customers, subject to the stated transmission-upgrade exception. Equivalent to 90%.

  • The facility cannot take service under specified electric rates: the long-term industrial load rate unless its resource and price meet statutory conditions, tariffs approved in MPSC Cases U-21160, U-21163, or U-21646, or any rate that makes residential customers subsidize the facility’s service. The facility will not take electric service.

  • Within three years after being placed in service, the facility must attain certification under at least one of the listed green-building standards, and the qualified entity must certify that to the MSF. Not later than 3 years.

  • The qualified entity must make annual reports on exempt purchases, employment, tax withholding, capital investment, and other information required by the MSF; the reports are subject to audit. Contractors claiming the exemption must also submit annual purchase summaries and keep supporting records for four years. Must be made on an annual basis.

  • The MSF guidelines impose administrative charges: a $50,000 application fee, an annual fee equal to 0.25% of the minimum investment divided annually through the term, a $7,000 amendment or transfer fee, and $5,000 fees for late reporting or late annual-fee payment. Application Fee $50,000.00.

  • The MSF cannot issue new certificates after December 31, 2029, although certificates already in effect on that date are not affected. Shall not issue any new certificates.

  • The exemption is time-limited: it runs through December 31, 2050, or through December 31, 2065 for qualifying brownfield-plan or former power-plant properties. Through December 31, 2050.

  • If a certificate is revoked, the former qualified entity must repay the exemptions claimed by all persons under it, plus interest. Revocation within 10 years requires full repayment; after 10 years, the MSF may approve a lower amount, but not less than 50%, after evaluating the circumstances. Exempt claims must stop during the revocation-notice period. Entire amount of the tax exemptions.

  • The existing exemption for qualified data centers continues after January 1, 2026 only if the specified statewide reporting demonstrates at least 1,000 data-center or related jobs established since January 1, 2016; a 400-job threshold applies to continuation after January 1, 2022. At least 1,000 data center industry jobs.

Benefits & exceptionsHide benefits & exceptions5

  • An existing sales/use tax exemption covers qualifying data-center equipment bought for qualified data centers or colocated businesses, and equipment installed by contractors. Its continuation is subject to the statutory job thresholds: at least 400 qualifying industry or related jobs for the post-2022 period and 1,000 for the post-2026 period; the exemption runs through 2050. The equipment exemption

  • A separate sales/use tax exemption covers qualifying equipment purchased by a certified enterprise data center or its affiliates, as well as equipment installed by contractors. It is available only while the facility’s certificate is in good standing and applies through 2050, or through 2065 for qualifying brownfield or former power-plant sites. The certified-facility exemption

  • The Michigan Strategic Fund must review a complete and correct certificate application within 120 days and issue a certificate or provide written reasons for denial. The applicant’s timeline to meet eligibility criteria cannot exceed six years, and the certificate sets the applicable timeline. Review within 120 days

  • The law provides several ways to meet the 90% clean-energy procurement requirement: on-site renewable generation, a long-term utility contract, or a voluntary green-pricing program. Utilities must identify and, if necessary, develop supporting tariffs, contracts, and other mechanisms. A qualifying contract must ensure the facility’s service costs are not passed to other customers, with an exception for certain network transmission upgrade costs allocated through generally applicable utility ratemaking. Clean-energy compliance options

  • No new enterprise-data-center certificates may be issued after December 31, 2029, but the law expressly preserves certificates already in effect on that date. Existing certificates remain unaffected

Sources

current law · State measure: Indiana Michigan Power Company's Michigan service territory
Establishes binding tariff protections for Indiana Michigan Power’s large-load customers, using a 50 MW threshold and addressing the risk that their service costs could be shifted to other customers.Michigan MPSC Order on Indiana Michigan Power Large-Load Tariff

What this means

This order does not ban data centers, but it adds meaningful costs and steps for large projects: the utility must create a separate rate for large-load customers, and customers must face a $100,000 upfront administrative fee. Before each customer begins service, the utility must also file a review showing that other customers will not pay the costs of serving it, which could add delay and oversight for projects of 50 MW or more.

People behind it

  • Filed the application proposing modifications to its Large Power Tariff for large-load customers. Filed an application

  • Issued and administers the order approving tariff changes and directing related filings and reporting. IT IS ORDERED

Restrictions & requirementsHide restrictions & requirements12

  • The large-load rules apply at 50 MW or more, or when a customer is reasonably expected to reach that level across aggregated premises of at least 1 MW each; I&M has discretion over aggregation. 50 MW threshold

  • I&M must establish a separate standalone rate for large-load customers in its next general rate case, and applicable special contracts made before then must allow customers to move to that rate once established. new standalone rate

  • Before each large-load customer takes service, I&M must file an ex parte docket demonstrating tariff compliance and that other customers will not pay costs caused by the interconnection; the filing must include supporting modeling or cost-of-service studies. Prior to each large-load customer taking service

  • Potential large-load customers are subject to a $100,000 upfront administrative fee, reconciled against the actual cost of all studies performed by I&M. a $100,000 upfront administrative fee

  • The minimum charge requires payment based on at least 90% of requested contract capacity and 65% of expected energy usage. 90% of their requested contract capacity

  • Large-load contracts have a five-year ramp-up followed by a 15-year initial term; either party must give 60 months’ written notice to discontinue service, and the contract automatically renews for five-year periods if notice is not provided. 15-year initial contract term

  • A customer may make only one capacity reduction of up to 10% without penalty, with four years’ written notice. Other capacity reductions are subject to Commission review through an ex parte proceeding. no more than 10%

  • A customer may not assign or reassign contract capacity to another customer at its own discretion; I&M’s written consent is required. I&M’s written consent is required

  • An exit fee applies if a large-load customer terminates its contract, elects service from a qualified alternative supplier, or reduces contract capacity beyond the allowed reduction; the fee is based on full contract capacity and may be reduced or mitigated only with Commission review and approval. based upon the large-load customer’s full contract capacity

  • Default collateral is 50% of the exit fee, in cash or a standby irrevocable letter of credit; a different amount or form of collateral requires Commission review and approval. default collateral amount is equal to 50% of the exit fee

  • I&M must update its technical interconnection requirements to improve voltage ride-through requirements and add operational ramp-rate limits. improve its voltage ride-through requirements

  • I&M must develop and execute agreements enabling mandatory load reductions from large-load customers when needed to prevent firm load shedding of other customers, consistent with regional transmission organization requirements. mandatory load reduction

Benefits & exceptionsHide benefits & exceptions4

  • The contract provides a five-year ramp-up period followed by a 15-year initial term, with automatic five-year renewals if the required notice to discontinue service is not given. This offers a long-term service arrangement, subject to the contract’s notice and renewal terms. five-year automatic renewal

  • A large-load customer may make a one-time capacity reduction of up to 10% with four years’ written notice. Other capacity reductions require Commission review. one-time change in capacity

  • The Commission may approve a reduction or mitigation of an exit fee. Approval is required, and the request may be considered in an ex parte proceeding if the Commission finds that appropriate. reduce or mitigate exit fees

  • The default collateral requirement is 50% of the exit fee, rather than the 100% amount proposed by the Attorney General. Cash that earns interest or a standby irrevocable letter of credit are default forms; a different amount or form requires Commission review and approval. default collateral amount is equal to 50% of the exit fee

Sources

current law · State measure: Consumers Energy Company’s service territory; the covered counties are not specified in the source
Establishes binding Rate GPD protections to reduce the risk that new large-load customers shift costs or stranded investments to existing customers.Michigan MPSC Consumers Energy Rate GPD Data Center Provision, Case No. U-21859

What this means

The measure would require large-load customers to accept a 15-year contract, pay for at least 80% of contracted capacity, and provide collateral, creating substantial long-term financial commitments (15-year contract term and 80% minimum billing demand). Before service begins, the utility would also need Commission approval showing the customer’s costs will not be shifted to others, adding a potential delay; these requirements are significant barriers, though they do not prohibit development.

People behind it

  • Signed the Commission order as Chair. Daniel C. Scripps, Chair

  • Proposed the tariff amendments in its application to the Commission. filed an application

  • Issued the order approving the tariff amendments and directing their implementation. ORDER

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  • Signed the Commission order as Commissioner. Katherine L. Peretick, Commissioner

  • Signed the Commission order as Commissioner. Shaquila Myers, Commissioner

Restrictions & requirementsHide restrictions & requirements9

  • The large-load tariff applies to loads of 100 MW or more, including combined loads of 100 MW or more under common ownership when each site is at least 20 MW. It applies regardless of the customer’s industry or end use. 100 MW or greater

  • A customer must accept a 15-year contract term after a negotiated ramp-up period, which cannot exceed five years. The contract automatically renews for successive five-year periods unless the customer gives four years’ written notice to terminate; notification requirements continue during renewals. automatic five-year evergreen contract extensions

  • After the ramp-up period, the customer’s minimum billing demand must be at least 80% of its contracted capacity, regardless of actual usage. no less than 80%

  • The default collateral requirement is 50% of the minimum monthly charges multiplied by the months remaining in the full contract term; it is recalculated annually. Default collateral must be cash or a standby irrevocable letter of credit. 50% of the total minimum monthly charges

  • If a customer exits, the exit fee is the minimum billing demand multiplied by the months remaining on the contract, including any extension; it applies during ramp-up and the contract term. The fee also includes the applicable system access charge. exit fee equal to the MBD multiplied by the number of months remaining

  • A customer may make one discretionary capacity reduction of no more than 10%, with four years’ written notice. Further reductions generally require payment of a prorated exit fee or Commission review and approval through an ex parte proceeding. The customer cannot reassign its capacity to another customer on its own. one-time reduction of no more than 10%

  • Consumers may suspend service if a customer’s usage is 1 MW or more above its contracted capacity, and may seek to amend the contract. suspend service if usage is 1 MW or more

  • Before each large-load customer takes service under the tariff, Consumers must file an ex parte application demonstrating compliance with the tariff and showing that other customers will not pay costs caused by the interconnecting customer. Prior to each large load customer taking service

  • An applicant must pay a $100,000 upfront project-proposal fee. Consumers must track the actual study and proposal costs and reconcile the fee afterward, with no cap on additional amounts due. upfront fee of $100,000

Benefits & exceptionsHide benefits & exceptions7

  • Large-load service is available under Rate GPD to customers with at least 100 MW at one site, or to commonly owned sites that total at least 100 MW with at least 20 MW at each site. The provisions should apply to loads of 100 MW or greater.

  • Customers may negotiate a ramp-up period of up to five years before the 15-year contract term and 80% minimum billing demand begin. The ramp-up period shall not exceed five years.

  • A large-load customer may make one discretionary contract-capacity reduction of up to 10%, with four years’ written notice and no Commission approval required. Further reductions may be made by paying a pro-rated portion of the exit fee; in certain cases, a reduction may instead be reviewed by the Commission. a one-time reduction of no more than 10%.

  • Consumers must take reasonable steps to mitigate an exit fee, including reselling unused capacity or using it to serve other customers; the resulting mitigation benefits are provided to the affected customer. take all reasonable steps to mitigate the exit fee.

  • Default collateral is set at half the exit fee and recalculated annually. Consumers may seek approval for lower collateral, or another form of collateral, based on the customer’s specific risk; acceptable default forms include cash or a standby irrevocable letter of credit. the default collateral provision should be 50%.

  • Consumers must discuss its voluntary green pricing options with prospective large-load customers during contract negotiations. directs Consumers to discuss VGP options.

  • The Commission will endeavor to decide the required pre-service filings within 90 days. These filings must show tariff compliance and that other customers will not pay costs caused by the new connection. within 90 days of the filing date.

Sources

pending · Statewide
Regulates when Michigan local governments may pause large data-center zoning applications and lets them assess impacts, adopt data-center-specific zoning rules, and require ongoing reports and inspections.Michigan HB 5882 (2026)

What this means

The bill would let local governments pause applications for large data centers for up to six months, with one extension of up to 90 days, and adopt project-specific zoning rules (moratorium limits and extension). It could also add costs for studies and later compliance checks, but these powers are local and apply only to large-scale projects, so the barriers are significant without amounting to a statewide ban (local review costs).

Timing

Ends
An initial period not to exceed 6 months; it may be extended once for a specified period not to exceed 90 days.

The bill authorizes local governments to impose moratoriums, rather than imposing one statewide. An extension requires adoption at a public meeting and documented compelling circumstances; the local government must not have previously extended that moratorium. The initial period may not exceed 6 months and an extension may not exceed 90 days.

People behind it

  • Listed as a sponsor and identified as the representative who introduced HB 5882. Bill sponsor and introduction record

  • Listed as a sponsor of HB 5882. Sponsor listing

  • Listed as a sponsor of HB 5882. Sponsor listing

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  • Tasked with establishing electrical-load or infrastructure-investment thresholds for classifying large-scale data centers. Threshold-setting duty

  • Tasked with creating and maintaining a public website with planning information and resources. Website duty

  • Given the responsibilities and authority to adopt and administer moratoriums, conduct reviews and hearings, and consider zoning amendments under the bill. Local-government responsibilities

Restrictions & requirementsHide restrictions & requirements8

  • Local governments may impose a moratorium on large-scale data centers only by ordinance or resolution at a public meeting, with a defined scope and exemptions, a written public process to appeal based on extraordinary hardship, a public-health rationale, and a prohibition on elected officials entering project-related nondisclosure agreements. The moratorium may initially last no more than six months, and the local government must not previously have imposed one on similar proposed projects. Initial period not to exceed 6 months

  • During a moratorium, the local government must stop accepting, reviewing, or approving zoning applications for covered projects. The act does not delay a project that has already received all necessary local zoning authorizations from beginning operation. shall not accept, review, or approve

  • A moratorium may be extended only once, for a specified period of up to 90 days, with a public-meeting ordinance or resolution and documentation of compelling circumstances. Before the moratorium ends, the governing body must vote publicly to lift it or approve a qualifying extension. not to exceed 90 days

  • During a moratorium, a local government may require project studies and reports, including fire-response, electrical-grid, water-treatment, and economic or fiscal analyses. It may also propose zoning rules that require special or conditional land-use approval, confine projects to designated districts, or impose conditions and standards. may require the owner or operator

  • A local government may require an owner or operator to pay or reimburse costs for studies, reports, analyses, consultations, or inspections under the act; it may suspend review of a pending zoning application until payment or reimbursement is made. may require the owner or operator

  • Before a moratorium ends, the local government must hold a final public hearing to present its findings and proposed zoning amendments and allow public testimony, questions, and written comments. It may formally adopt proposed zoning amendments only by a governing-body vote at a public meeting after considering the submitted materials. shall conduct a final public hearing

  • After a moratorium, local governments may require annual compliance reports, conduct periodic inspections, and reevaluate or amend zoning rules based on updated information. ongoing compliance reports on an annual basis

  • The act’s moratorium and related provisions apply to large-scale data centers, defined by electrical-load or infrastructure-investment thresholds that the Michigan Public Service Commission must establish. The thresholds must capture only facilities requiring unusually large, concentrated, or nonroutine loads or infrastructure investment. unusually large, concentrated, or nonroutine

Benefits & exceptionsHide benefits & exceptions3

  • Moratoriums are time-limited: the initial period cannot exceed six months, and there can be at most one extension of up to 90 days. A local government also cannot impose a moratorium if it has previously imposed one on similar proposed projects. These limits constrain how long covered projects can face a moratorium, though applications may be paused during one. Initial period not to exceed 6 months Has not previously imposed a moratorium.

  • The Public Service Commission must set data-center thresholds so that only facilities requiring unusually large, concentrated, or nonroutine electrical loads or infrastructure investment qualify as “large-scale.” Data centers below those thresholds are not covered by this act’s provisions for large-scale data centers; cryptocurrency mining facilities are separately covered. Only data centers that require unusually large, concentrated, or nonroutine electrical loads.

  • A large-scale data center or cryptocurrency mining facility that has received all necessary local zoning authorizations cannot be delayed by this act from beginning operation. Received all necessary zoning authorizations.

Sources

pending · Statewide
Would prohibit state and local governments from approving new data centers, and anyone from starting their operation, until April 1, 2027.Michigan HB 5594 (2026)

What this means

If enacted, the bill would block state and local approvals for data centers and prevent anyone from beginning operations until April 1, 2027, creating a temporary halt to new development and startups. It would not require existing data centers to close, but violations of the operating ban could bring a fine of up to $1,000 per day.

Timing

Ends
Apr 1, 2027

The restrictions on governmental authorizations and beginning data-center operations apply until this date. The bill states no expiration for its other provisions. It takes effect only if HB 5596 or the specified Senate bill is enacted.

People behind it

  • Introduced the bill and is identified as a sponsor.

  • Named among the representatives who introduced the bill.

  • Named among the representatives who introduced the bill and identified as a sponsor.

Show 11 more peopleShow fewer people

  • Named among the representatives who introduced the bill.

  • Named among the representatives who introduced the bill and identified as a sponsor.

  • Named among the representatives who introduced the bill.

  • Named among the representatives who introduced the bill.

  • Named among the representatives who introduced the bill.

  • Named among the representatives who introduced the bill.

  • Named among the representatives who introduced the bill.

  • The bill assigns the department the duty not to authorize data centers during the moratorium.

  • The bill assigns local units the duty not to approve specified authorizations for data centers during the moratorium.

  • May bring an action to enjoin a violation and collect the civil fine.

  • May bring an action to enjoin a violation and collect the civil fine.

Restrictions & requirementsHide restrictions & requirements3

  • From the act’s effective date until April 1, 2027, local governments may not approve site plans, permits, land uses or activities, variances, easements, certificates, or other authorizations for a data center (local authorization ban).

  • For the same period, the Department of Environment, Great Lakes, and Energy may not issue, grant, or approve a license, permit, or other authorization for a data center (department authorization ban).

  • For the same period, a person may not begin operating a data center. A violation can result in a civil fine of up to $1,000 per day, and the county prosecutor or attorney general may seek an injunction and collect the fine (operating prohibition and penalties).

Sources

pending · Statewide
Would subject local zoning decisions on large-scale data centers to the proposed act’s rules for applications and court appeals.Michigan House Bill 6427 (2026)

What this means

The bill would add meaningful steps for large data center projects, including public disclosure with at least 30 days for review, and let local governments require impact-related agreements and recover review costs. It would also make it harder to overturn local decisions in court, which may give decisions more finality but can make it harder for a developer to challenge a denial.

People behind it

  • Primary sponsor and introducer of House Bills 6426 and 6427.

  • Committee to which House Bills 6426 and 6427 were referred for consideration.

Restrictions & requirementsHide restrictions & requirements10

  • For a large-scale data center, a local-decision application is not administratively complete unless it includes energy demand, water use, infrastructure needs, environmental impacts, ownership structure, affiliated entities, phased-development plans, and a public summary, and the information has been available for public review for at least 30 days. The definition generally covers facilities with at least 25 megawatts of critical information-technology load or 50 megawatts of total electrical demand, including qualifying phased projects and expansions. (application requirements)

  • Applicants must promptly update or supplement submitted information after a material change, and a local government may request additional information reasonably related to community impacts, including noise, vibration, lighting, traffic, infrastructure strain, public safety, and emergency services. The applicant must comply promptly or provide a detailed written explanation for why it cannot comply. (additional information requests)

  • Within 30 days after receiving application information or updates, the local government must post the information publicly, except for properly designated proprietary information or information otherwise exempt from disclosure. A public summary cannot be designated proprietary. (public posting requirement)

  • A local government may treat the proposed large-scale data center's cumulative impacts on farmland, wetlands, and natural resources, as well as applicable labor standards and workforce considerations, as substantial evidence when deciding whether to approve it. (factors that may be considered)

  • A local government may require the developer to enter enforceable agreements imposing requirements reasonably related to community impacts, including energy demand, water use, infrastructure, public safety, environmental impacts, noise, lighting, and site restoration. These agreements can create continuing construction or operating obligations. (enforceable local agreements)

  • A local government may require the developer to pay the government's actual and reasonable costs of reviewing and processing the application, including legal, engineering, environmental, and public-safety analysis costs. (application review costs)

  • A person challenging a local decision must first exhaust available local remedies, give the local government written notice of alleged procedural defects, and allow at least 30 days to cure those defects before seeking judicial review. (judicial-review prerequisites)

  • Judicial review of a local decision is confined to the record existing when the decision was made, and a court may set the decision aside only upon clear and convincing evidence of specified defects, such as illegality, unlawful procedure causing material prejudice, lack of substantial evidence, arbitrariness, or a substantial legal error. (limited judicial review)

  • A court may award attorney fees to the local government when a challenger failed to satisfy the procedural prerequisites, made a material misrepresentation, brought a frivolous action, or acted in bad faith. (possible attorney fees)

  • A person making a material misrepresentation in connection with a local decision may be fined up to $10,000 for a first violation, $25,000 for a second violation, and $50,000 for a third or subsequent violation. (civil fines)

Benefits & exceptionsHide benefits & exceptions4

  • A person challenging a local decision must first exhaust available local remedies, provide written notice of procedural defects, and allow at least 30 days for the local government to cure those defects. These requirements can make it harder to challenge a data-center approval or denial in court. exhausted all available remedies

  • Judicial review of a local decision is limited to the record existing when the decision was made, and a court may set aside the decision only if the challenger proves by clear and convincing evidence one of the listed legal or procedural defects. This provides stronger protection for an approved data-center project against later court challenges. confine its consideration to a review of the record

  • A court may award attorney fees to the local government when a challenge fails because the challenger did not follow the required procedures, made a material misrepresentation, or brought a frivolous or bad-faith action. This may deter litigation against a data-center project. may award attorney fees to a local unit of government

  • The Michigan Zoning Enabling Act would expressly make zoning ordinances subject to the data center local decision protection act, and would make zoning-board-of-appeals appeals subject to that act's judicial-review limits. This extends the data-center protections to zoning decisions. The data center local decision protection act

Sources

pending · Statewide
Would require large-scale data center developers to disclose key project details for public review and set rules for local approval decisions and legal challenges.Michigan House Bill 6426 (2026)

What this means

If enacted, the bill would cover large data centers and require detailed application information to be available for public review for at least 30 days, adding steps and potential delay (30 days). Local governments could also require enforceable agreements and charge reasonable review costs, creating meaningful but not prohibitive added burdens (enforceable agreements).

People behind it

  • Primary sponsor who introduced House Bill No. 6426

Restrictions & requirementsHide restrictions & requirements6

  • A large-scale data center application is not administratively complete unless it discloses energy demand, water use, infrastructure needs, environmental impacts, ownership, affiliated entities, phased-development plans, and a public summary, and makes that information available for public review for at least 30 days. The requirements apply to facilities with at least 25 megawatts of critical information-technology load, at least 50 megawatts of total electrical demand, or qualifying phased developments or expansions. application is not administratively complete

  • Applicants must promptly update or supplement the required information when a material change occurs, adding an ongoing disclosure obligation during the approval process. promptly update or supplement

  • A local government may request additional information reasonably related to community impacts, including noise, vibration, lighting, traffic, infrastructure strain, public safety, and emergency services. The recipient must promptly comply or provide a detailed written explanation for noncompliance. may request additional information

  • Local governments may require developers to enter enforceable agreements imposing requirements reasonably related to the data center's community impacts, including energy demand, water use, infrastructure, public safety, environmental effects, noise, lighting, and site restoration. require the developer to enter into

  • A local government may require the developer to pay the government's actual, reasonable application-review costs, including legal, engineering, environmental, and public-safety analysis costs. pay for the actual, reasonable costs

  • A person making a material misrepresentation connected with a local decision may face civil fines of up to $10,000 for a first violation, $25,000 for a second, and $50,000 for a third or subsequent violation. civil fine as follows

Benefits & exceptionsHide benefits & exceptions4

  • Allows a data-center applicant to designate submitted information other than the required public summary as proprietary, so it is exempt from the bill’s public-posting requirement, subject to other applicable disclosure laws. A person may designate any information ... as proprietary information

  • Limits lawsuits challenging a local approval or denial by requiring the challenger first to exhaust local remedies, give the local government at least 30 days to cure procedural defects, and comply with applicable filing deadlines. may not seek judicial review ... unless all of the following conditions are met

  • Makes a local decision harder to overturn in court by limiting review to the existing record and requiring the challenger to prove a listed defect by clear and convincing evidence, including violations of law, unlawful procedure, lack of substantial evidence, or arbitrary action. the circuit court shall confine its consideration to a review of the record

  • Authorizes a court to award attorney fees to the local government when a challenge fails to meet the required preconditions, includes a material misrepresentation, is frivolous, or is brought in bad faith, which can deter disruptive challenges to data-center decisions. the circuit court may award attorney fees to a local unit of government

Sources

pending · Statewide
Would tighten eligibility for Michigan’s data-center equipment tax exemption by requiring certified facilities to meet investment, job, clean-energy, water, and environmental standards, while limiting new certificates after 2029.Michigan House Bill 5791 (2026)

What this means

The bill offers a use-tax break for qualifying data centers and extends it to 2065 for certain brownfield or former power-plant sites through December 31, 2065. But qualifying centers face substantial conditions, including clean-energy, water, job, and property-tax rules, so the incentive is limited rather than an open-ended benefit.

People behind it

  • Introduced and sponsored House Bill 5791.

  • Administers the enterprise data center certificate program, including reviewing applications, issuing and revoking certificates, and receiving required reports and certifications.

  • May serve as a designee of the Michigan Strategic Fund in reviewing enterprise data center certificate applications.

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  • Gather, certify, and report data center employment numbers used to determine whether the exemption continues to apply.

Restrictions & requirementsHide restrictions & requirements13

  • To claim the enterprise data center use-tax exemption, the qualified entity must obtain a certificate from the Michigan Strategic Fund, and the facility must satisfy or be expected to satisfy all statutory requirements within a period set in the certificate, no longer than 6 years. The Fund has up to 120 days after receiving a complete application to approve or deny it.

  • The enterprise data center must involve at least $250 million in aggregate capital investment by the qualified entity and its affiliates.

  • The qualified entity and its affiliates must create and maintain at least 30 qualified new Michigan jobs paying at least 150% of the applicable prosperity-region median wage through the applicable date.

  • An enterprise data center generally may not receive state or local property-tax benefits through December 31, 2050, or December 31, 2065 for qualifying brownfield or former power-plant sites, unless each affected local government's governing body approves the benefit by resolution. Existing qualifying brownfield tax capture for eligible activities is excepted.

  • The facility must obtain certification under at least one specified green-building or energy-management standard within 3 years after being placed in service.

  • When placed in service, the facility must use municipal water from a municipal water system with available capacity to serve it.

  • The facility must procure or plan to procure clean energy equal to at least 90% of its forecasted annual electricity use. The bill specifies acceptable methods, including qualifying on-site generation, certain long-term utility contracts, or participation in a voluntary green-pricing program.

  • The facility may not take electric service under specified rates, including the long-term industrial load rate unless stated conditions are met, certain tariffs identified by Michigan Public Service Commission case numbers, or any rate that causes residential customers to subsidize service to the facility.

  • The qualified entity must adopt and maintain direct practices to mitigate environmental impacts, including renewable-power procurement where possible, energy-efficiency measures, and specified water-conservation, water-reuse, and watershed-restoration practices. These practices must be maintained through the applicable date.

  • The qualified entity must submit annual reports on exempt purchases, employment, tax withholding, capital investment, and other information, and the reports are subject to audit. Contractors claiming the exemption must also submit annual purchase summaries and retain supporting records for 4 years.

  • The Michigan Strategic Fund must revoke a certificate if the facility no longer meets the enterprise-data-center definition. During the revocation notice period, all persons must stop claiming exemptions tied to the certificate, and revocation generally requires repayment of all related tax benefits plus interest, subject in some cases to a possible reduction of at least 50%.

  • The Michigan Strategic Fund may not issue new enterprise data center certificates after December 31, 2029, although certificates already in effect on that date are not affected.

  • For the existing qualified-data-center use-tax exemption, continued eligibility after January 1, 2026 requires certified reporting demonstrating that qualified data centers, colocated businesses, and their contractors collectively established at least 1,000 qualifying data-center or related jobs in Michigan since January 1, 2016.

Benefits & exceptionsHide benefits & exceptions9

  • Exempts qualifying data center equipment from Michigan use tax, including equipment sold to qualified data centers, colocated businesses, and contractors installing equipment as part of a qualified data center. The exemption applies through December 31, 2050, but after January 1, 2026 requires at least 1,000 qualifying data center or related jobs established since January 1, 2016. the storage, use, or consumption of data center equipment

  • Creates a separate use-tax exemption for equipment purchased for a certified enterprise data center, including equipment bought by the facility's qualified entity, affiliates, and construction contractors. The exemption generally runs from April 2, 2025 through December 31, 2050. a qualified entity or its affiliates

  • Extends the enterprise data center use-tax exemption through December 31, 2065 for a certified facility located in a brownfield-plan property or on a former industrial power-plant site. through December 31, 2065

  • Defines exempt data center equipment broadly to include computers, servers, power and environmental systems, software, construction materials, infrastructure, machinery, wiring, cabling, devices, tools, and equipment used to construct or modify the facility. construction materials used or assembled

  • Allows an enterprise data center applicant to obtain a certificate from the Michigan Strategic Fund and requires the fund or its designees to approve or deny a complete application, with written reasons for denial, within 120 days. not later than 120 days after receiving a complete and correct application

  • Permits a certified enterprise data center to use certain brownfield property-tax capture without losing eligibility for the use-tax exemption, if the brownfield plan was already approved and only reimburses eligible brownfield activities. property tax capture under a brownfield plan

  • Allows electric utilities, cooperative utilities, and municipal utilities to create tariffs, contracts, and other mechanisms that help an enterprise data center demonstrate compliance with its clean-energy requirement. Long-term contracts must prevent the facility's service costs from being passed to other customers, subject to specified transmission-cost protections. shall identify and, if necessary, develop tariffs, contracts, and other mechanisms

  • Protects existing enterprise data center certificates from the end of new-certification authority: the Michigan Strategic Fund may not issue new certificates after December 31, 2029, but certificates already in effect on that date remain unaffected. does not affect any existing certificates

  • Allows local governments to approve a facility's receipt of otherwise disqualifying state or local property-tax benefits by resolution, preserving the enterprise data center's eligibility if every affected local government's governing body approves. the governing body of each local unit of government affected

Sources

pending · Statewide
Would allow Michigan counties, townships, cities, and villages to create data center zoning districts and set additional requirements to address local impacts.Michigan House Bill 5846 (2026)

What this means

The bill would let local governments add data-center-specific zoning conditions and limit large-scale centers to designated overlay districts, which could add costs or delay projects (local governments may restrict zoning authorizations). These rules would be optional, not statewide requirements, so the impact would depend on what local governments choose to do.

People behind it

  • Representative identified as a sponsor and one of the legislators who introduced the bill.

  • Representative identified as a sponsor and one of the legislators who introduced the bill.

Restrictions & requirementsHide restrictions & requirements4

  • A local government may impose additional or modified conditions, standards, or requirements for zoning authorizations for data centers in a data center overlay district. (additional or modified conditions, standards, or requirements)

  • A local government may require special land use approval or conditional land use approval for data centers in a data center overlay district. (Special land use approval or conditional land use approval requirements)

  • A local government may impose additional requirements on data centers when those requirements are necessary to address identified local impacts. (additional requirements that are necessary to address identified local impacts)

  • A local government may restrict zoning authorizations for large-scale data centers to locations within a data center overlay district. The thresholds defining a large-scale data center are set by local ordinance and may relate to electrical load, water usage, or infrastructure investment. (restrict zoning authorizations for large-scale data centers)

Sources

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