Data centers in Michigan

📜 State laws

2024 law: big sales tax break for large data centers (in effect) · Jan 17, 2025
Two bills, House Bill 4906 and Senate Bill 237, became Public Acts 207 and 181 of 2024. Lawmakers passed the final versions in December 2024, and Governor Whitmer signed them on January 17, 2025. They let large 'enterprise' data centers skip Michigan's 6% sales and use tax on servers, cooling and power equipment and building materials until 2050 (2065 on brownfield or old power plant land). See 'Tax breaks' for the rules a project must meet. Source

House Bills 5396-5398: repeal the data center tax break (stuck in committee) · Dec 17, 2025
A bipartisan group led by Rep. Dylan Wegela (D) and Rep. Jim DeSana (R) introduced bills on December 17, 2025, to end the 2024 data center sales and use tax breaks. They were sent to the House Economic Competitiveness Committee and have had no vote. In September 2026, Sen. Jim Runestad (R) said he would bring a similar repeal bill in the Senate. Source

House data center package (HB 6135-6142): rate class, water, noise, NDAs, community deals · June 25, 2026
On June 25, 2026, House Democrats introduced a tied package of 8 bills: a separate electric rate for very large users like data centers (HB 6135); community benefit agreements (HB 6136-6137); water use rules (HB 6138); a noise study before a building permit (HB 6139); a ban on secret deals (NDAs) between officials and data center builders (HB 6140); labor agreements (HB 6141); and plans and money set aside to take a data center down when it closes (HB 6142). All are in committee with no vote yet. Source

Senate data center package (SB 1046-1051): water permits, rate class, NDAs, community deals · June 18, 2026
On June 18, 2026, Senate Democrats introduced bills that would: require a state permit for water used and not returned ('consumptive use') and set a cap (SB 1046); create a separate electric rate class for very large users (SB 1047); require labor agreements and prevailing wages (SB 1048); ban certain secret deals (NDAs) (SB 1049); and require community benefit agreements, tied to zoning (SB 1050-1051). All are in the Senate Energy and Environment Committee with no vote yet. Source

House Bill 5399: ban local officials' secret deals (NDAs) on data centers · Dec 18, 2025
Introduced December 18, 2025, by Rep. Reggie Miller after Van Buren Township officials signed NDAs. It would stop elected local officials from signing NDAs about data center construction. It is in the House Economic Competitiveness Committee with no vote yet. Source

House Bills 5881-5882: state rules for local data center pauses (moratoriums) · April 23, 2026
Introduced April 23, 2026. HB 5882 would set requirements for moratoriums that cities, villages, townships and counties put on large data centers or crypto mines; HB 5881 ties it to the zoning law. Both are in the House Government Operations Committee with no vote yet. Source

💡 Who pays for the power

Consumers Energy rules for data centers (since November 2025) · Nov 6, 2025
On November 6, 2025, the Michigan Public Service Commission (MPSC) approved Michigan's first data center rate rules, for Consumers Energy (Case U-21859). They apply to customers using 100 megawatts or more (or 100 MW across several sites of 20 MW or more with the same owner). Contracts last at least 15 years, with up to 5 years to ramp up. The customer pays for at least 80% of the power it signed up for, even if it uses less. Leaving early means an exit fee equal to the minimum monthly bill times the months left, and the customer must post collateral of half that fee. Each new large customer needs its own approval case at the MPSC. Source

DTE contracts for the Saline Township 'Stargate' data center (approved, under appeal) · Aug 2026
On December 18, 2025, the MPSC conditionally approved DTE Electric's special contracts to power a 1,383-megawatt data center in Saline Township for Green Chile Ventures, an Oracle subsidiary (Case U-21990). Terms: at least 19 years, pay for at least 80% of contracted power, a termination payment of up to 10 years of minimum bills, and the customer pays over 15 years for 1,383 MW of batteries that DTE owns. The MPSC held a public comment hearing but approved the contracts without a 'contested case' (where parties can file testimony and question witnesses), and said the deal would not raise other customers' rates. DTE estimated about $300 million in net benefit to other customers. Attorney General Dana Nessel appealed to the Michigan Court of Appeals on April 17, 2026, saying the law required a full 'contested case'. Environmental groups joined with briefs in August 2026. The appeal is not decided. Source

DTE contracts for Google's Van Buren Township data center (approved October 2026) · Oct 1, 2026
On October 1, 2026, the MPSC conditionally approved DTE Electric's special contracts with Google LLC for a data center in Van Buren Township, Wayne County (Case U-22058). DTE asked for this case to be a full contested case. Terms: 20 years; Google pays for at least 80% of contracted power; a termination payment so Google pays at least 15 years of minimum charges; and Google pays for up to 480 MW of batteries and up to 1,600 MW of new renewable power that DTE will own. The MPSC says it will keep checking that other customers do not end up paying. Source

DTE's proposed rules for all big data centers (pending) · March 18, 2026
The MPSC told DTE to propose general data center rules. DTE filed on March 18, 2026 (Case U-22061). The plan would cover new load over 100 megawatts at one site, or over 100 MW across sites averaging more than 20 MW. Customers would pay at least 80% of contracted power, a $100,000 or $250,000 study fee, a termination fee of 15 years of minimum bills, and collateral for the full termination fee. An administrative law judge is hearing the case; no final decision yet. Source

💵 Tax breaks

Sales and use tax break for large 'enterprise' data centers · Jan 17, 2025
Since January 2025, big data centers can skip Michigan's 6% sales and use tax on data center equipment and building materials until the end of 2050 (2065 on brownfield or former power plant land). To get a certificate from the Michigan Strategic Fund, a project must: invest at least $250 million; create and keep at least 30 new full-time jobs paying 150% or more of the regional median wage; get a green building certification within 3 years; use water from a public water system that has room to serve it; and buy clean energy equal to 90% of its expected yearly electricity use. It cannot also get local property tax breaks unless every affected local government approves by resolution. No new certificates after December 31, 2029. The Stargate project in Saline Township came to Michigan partly because of this tax break. Source

Older sales tax break for 'colocation' data centers (since 2015) · 2026
A 2015 law exempts equipment for 'qualified data centers' (one company renting space and computing power to others) from the 6% sales and use tax through 2050. The state Treasury says companies claimed it on about $212 million of equipment from 2020 to 2024, worth just under $13 million in lost tax. The state keeps the names of companies that claim it confidential. The developers of the Saline Township Stargate project said they plan to claim this break too. Source

Local property tax breaks are decided locally · Dec 2025
Cities, villages and townships can offer property tax breaks, such as the industrial facilities exemption under Public Act 198 of 1974. A developer in Van Buren Township was expected to ask for a 50% break under this law. A data center with the state sales tax certificate can only get local property tax breaks if every affected local government approves by resolution, so these votes happen at public meetings. Source

🤐 Secret deals and public records

The state keeps data center tax break details secret · Jan 17, 2025
The 2024 tax break law says the Michigan Strategic Fund must not release any information about the program that is not grouped together or that could identify a specific company or data center. So you cannot use a records request to learn which data center got a certificate from the state. Repeal bills and Sen. Runestad's proposal aim to change this. Source

Secret deals (NDAs) by local officials are legal · June 25, 2026
No Michigan law stops local officials from signing secret deals (NDAs) with data center developers. Examples: Van Buren Township's municipal services director said 'pretty much all of the township officials' signed NDAs for a 1-gigawatt proposal; records obtained through FOIA showed several Howell Township officials signed NDAs, which the township says were later rescinded. Bills to ban such NDAs (HB 5399, HB 6140, SB 1049) have not passed. Source

Utility contracts for data centers can be heavily blacked out · April 17, 2026
DTE filed the Saline Township power contracts with large parts blacked out (redacted). The MPSC reviewed the full versions privately. The Attorney General calls them 'secret data center contracts' and is challenging the approval in court. Source

Michigan's Freedom of Information Act (FOIA): how it works · 2026
Anyone can ask for public records from a city, village, township, county, school or state agency, except people in prison. Send a written request to the body's FOIA coordinator that describes the records; include your full name, address and contact information. The body must answer within 5 business days, and can extend once by up to 10 business days. Fees may apply. If denied, you can send a written 'appeal' to the head of the body, or sue in circuit court (Court of Claims for state agencies) within 180 days. The governor's own office is not covered, and courts are not covered. Source

💧 Water

Who approves the water a data center uses · 2026
If a data center buys water from a city or township water system, that local system decides whether to serve it. The 2024 tax break requires certified data centers to use municipal water. If a data center pumps its own water, a withdrawal of more than 100,000 gallons a day (averaged over 30 days) must be registered with EGLE using its Water Withdrawal Assessment Tool, and the user must report yearly. A state permit is needed above 2 million gallons a day. The MPSC does not decide water use. Source

Wastewater from data centers · 2026
A data center that sends cooling or other non-household wastewater to a local sewer plant may need a discharge permit from that plant, but only plants with an approved industrial pretreatment program can issue one. EGLE says data centers are not a federal 'categorical' industry, so permits are decided case by case. Source

Bills would add data center water limits · June 25, 2026
SB 1046 (June 2026) would require a state permit for water used and not returned and cap data center use; HB 6138 (June 2026) would set data center water rules. Neither has passed. Source

🌫️ Air and generators

Air permits for backup generators (EGLE) · Jan 2026
EGLE's Air Quality Division issues 'permits to install' for data center diesel backup generators and other pollution sources. Example: in January 2026 EGLE issued the air permit for 15 diesel generators at the Saline Township data center, expected to release about 35 tons of nitrogen oxides a year. EGLE had let the developer start installing them in October 2025 under a 'construction waiver', at its own risk. Many permits have public comment periods, listed on EGLE's calendar. Source

Wetland and stream permits (EGLE) · Jan 2026
Filling wetlands or changing streams needs an EGLE permit, often with a public hearing. EGLE held a virtual hearing in December 2025 on the Saline Township project, and in January 2026 let it fill about 9 acres of wetlands. Source

🙋 How to have your say

Who decides a data center near you · 2026
In Michigan, cities and villages zone their own land. Outside them, most townships have their own zoning, and the Township Board makes the final decision after the township planning commission holds a public hearing. If a township has no zoning, the county's zoning applies. The state utility commission (MPSC) only rules on power contracts and rates, and EGLE only on environmental permits; neither decides where a data center goes. Source

Zoning hearings: notice and how to take part · 2026
Before a rezoning or special land use hearing, the local government must publish notice in a newspaper at least 15 days before, and mail notice to owners and occupants within 300 feet of the site. Anyone can speak during public comment. Data center requests usually go to the planning commission first (public hearing), then the township board or city council. Source

Residents can force a public vote on a township or county rezoning · Aug 2026
Within 7 days after a township or county publishes a new zoning ordinance or rezoning, a registered voter can file a 'notice of intent' with the clerk. Then residents have 30 days from publication to turn in signatures equal to 15% of the votes cast for governor in that area at the last election. The rezoning is then on hold until voters decide. In August 2026, Augusta Township voters overturned a data center rezoning this way. Source

Towns cannot totally ban a lawful use · Jan 5, 2026
Michigan law says zoning cannot totally prohibit a land use where there is a demonstrated need for it and an appropriate location exists ('exclusionary zoning'). That is why many towns adopt temporary moratoriums and then write data center rules instead of banning them. Source

Appeal deadlines · 2026
A decision of the zoning board of appeals can be appealed to the county circuit court within 30 days after the written, signed decision, or 21 days after the board approves the minutes, whichever comes first. Source

How to comment at the utility commission (MPSC) · March 27, 2026
Anyone can file a public comment in an MPSC case (for example U-22061, DTE's data center rules) through the E-Dockets website or by email to the MPSC, and anyone can ask to take part in contested cases. Thousands of people commented on the Saline Township contracts, and the MPSC held a public hearing on December 3, 2025. Source

How to request records · 2026
Send a written FOIA request to the township, city or county FOIA coordinator (often the clerk). Ask for NDAs, emails with developers, development agreements and draft site plans. They must answer in 5 business days (plus up to 10 more). See 'Secrecy' for appeal rights. Source

🧾 Help with your bills

Michigan Energy Assistance Program (MEAP) · April 17, 2026
MEAP helps pay electric, gas, propane, heating oil and other heating fuel bills and helps people become self-sufficient. It is paid for by a $1.50 monthly charge per electric meter starting with September 2026 bills, which should raise about $90 million and help about 90,000 households. Apply through MI Bridges or call 2-1-1. Source

State Emergency Relief (SER) for heat and electric · 2026
MDHHS's State Emergency Relief can pay part of a heating or electric bill to keep service on or get it turned back on. It is available all year and uses federal LIHEAP money. Apply on MI Bridges or at your local MDHHS office. Source

Home Heating Credit · Aug 19, 2025
A state tax credit that helps pay heating costs, usually applied to your utility bill. File Form MI-1040CR-7 by September 30 each year (for example, by September 30, 2026 for tax year 2025). The average credit was $180. Free tax help is available. Source

📞 Who to contact

Michigan Public Service Commission (MPSC) · Oct 7, 2026
Sets rates and rules for regulated utilities like DTE Electric and Consumers Energy, including data center power contracts and large-load rules. Takes public comments and consumer complaints. Does not decide where data centers go. Source

Michigan Department of Environment, Great Lakes, and Energy (EGLE) · Oct 7, 2026
Issues air permits (generators), wetland and stream permits, wastewater permits, and registers large water withdrawals. Lists public comment periods on its calendar. Environmental Assistance Center: 800-662-9278. Source

Michigan Strategic Fund / MEDC · Oct 7, 2026
Issues the certificates for the enterprise data center sales tax break. By law it may not release details that identify a specific data center. Source

Michigan Department of Attorney General · Oct 7, 2026
Represents utility customers in MPSC cases and is appealing the Saline Township data center power contracts. Also handles FOIA and Open Meetings Act guidance. Source

Michigan Department of Health and Human Services (MDHHS) · Oct 7, 2026
Runs State Emergency Relief and MI Bridges applications for energy help. Source

Michigan Department of Treasury · Oct 7, 2026
Runs the Home Heating Credit and administers sales and use tax, including the data center exemptions. Source

Michigan Legislature · Oct 7, 2026
Bill pages show text, sponsors and every action for data center bills (for example SB 1046, HB 6135, HB 5396). Source