(The Center Square) – A bipartisan group of Michigan lawmakers have proposed a halt on the construction of all data centers in the state.
The moratorium would pause construction until April 1, 2027 in an effort to give local communities the opportunity to research how to address the centers, which are flooding into Michigan.
“Many rural communities just feel like they’re being invaded,” said Rep. Jennifer Wortz, R-Quincy, who helped co-sponsor the bill package. “Data centers come with a lot of unique questions. Between the land being cleared for development, the demand for energy they will add to the grid, and the tremendous water usage, these projects could cost communities more than they are worth.”
Wortz was joined in sponsoring House Bills 5594-5596 by Rep. Joseph Fox, R-Fremont, and Rep. Dylan Wegela, D-Garden City.
The bills would create the “Data Center Regulation Act,” which would prohibit new data centers from receiving state or local permits or commencing operations for one year.
This comes in response to a push for data centers statewide.
“Over the past year, we’ve seen dozens of projects pop up all around the state,” said Wegela. “We’ve seen communities come together to fight those projects. I have concerns about data centers for a lot of reasons.”
Wortz said she is concerned local communities are losing control.
“Only a few weeks ago, a Michigan judge ruled that the residents of Saline Township were not able to intervene in the construction of a data center in their town,” Wortz said. “As technology continues to advance, data centers will be needed, and some townships will decide that it’s right for their people, but we need to give them more time to examine these challenges before plunging headfirst into hyperscale projects.”
The data center Wortz is referring to is a $7 billion, 2.2-million-square-feet initiative of DTE Energy for OpenAI and Oracle. It would be in Saline Township – a small rural community in southeast Michigan.
OpenAI is the parent company of ChatGPT. If built, the “Project Stargate” center would help service artificial intelligence programs via OpenAI’s Stargate.
Despite public backlash, the Michigan Public Service Commission recently approved streamlining the process and minimizing public hearings.
Opponents of the centers are concerned about the long-term impacts on taxpayers and consumers.
“Private developers and DTE Energy need to prove that everyday Michiganders won’t be forced to subsidize corporate investments in their energy bills, and projects like this won’t hinder or block our transition to the clean energy future that we’ve set together as a state,” said Nick Occhipinti, senior policy director for the Michigan League of Conservation Voters.
Other states, like Wisconsin, are facing similar issues with transparency around these data centers—which could have substantial impacts on consumers’ energy bills.
In the next 10 years, data centers are expected to increase the average American’s energy bill from 25% to 70%, according to the Jack Kemp Foundation. Another analysis from Bloomberg News found a 267% increase in energy prices in communities located near data centers.
The bills were referred to the House Committee on Government Operations.
