Michigan senator introduces statewide data center moratorium package

Republican State Senator Jim Runestad has introduced a package of three bills that would temporarily halt new data center development across Michigan until April 1, 2027. The trio of bills—Senate Bills 1018, 1019, and 1020—each target a different aspect of data center development, an issue that has become increasingly contentious in communities across the state. The legislation is cited as the “Data Center Regulation Act.” 

Residents in several Michigan communities have opposed data center developments, citing concerns about noise, energy demand, and impacts on farmland and local infrastructure. 

Last week, residents living within one mile of a Dowagiac data center filed a proposed federal class-action lawsuit against Alliance Cloud Services LLC, alleging the facility generates excessive noise that interferes with their ability to use and enjoy their property. The complaint was filed in the U.S. District Court for the Western District of Michigan by Detroit-based law firm Liddle Sheets P.C. 

In a statement issued June 4 announcing the legislation, Runestad said the state lacks a clear understanding of the long-term impacts of data center development. 

“We’re currently operating under a process that is poorly understood, and these developments could potentially have major negative consequences beyond what we’re already seeing,” Runestad said. “Farmland is being destroyed and full communities are being razed to make way for these projects that are being pushed without complete information and with a disregard for public opinion.” 

Runestad introduced all three bills. Senator Ruth Johnson, R-Holly, is listed as a co-sponser on all three. 

Many residents who have raised concerns about data center development have also called for temporary pauses on new projects while local governments study potential impacts and consider regulations. According to reporting by Bridge Michigan, at least 19 Michigan communities have passed or proposed moratoriums on data center development. 

A member of Runestad’s staff told Watershed Voice that projects that are not yet operational would be paused under the legislation. 

“If there’s a project currently in the works, if it’s not already operational, then it would be put on pause until the moratorium is up,” the staff member said. “The idea is to make sure that we’re getting a full picture of all these before we start operations.” 

Governor Gretchen Whitmer, who faced criticism after appearing at an event celebrating a planned $16 billion data center project in Genesee County and posing for photos with  OpenAI CEO Sam Altman and Oracle CEO Clay Mazouyrk, said during a recent news conference that she would not support a statewide data center moratorium.

What do the bills do?

Senate Bill 1018

Senate Bill 1018 serves as the primary mechanism for the proposed moratorium. 

The bill would prohibit local governments from issuing site plans, permits, variances, easements, certificates or other authorizations for data centers until April 1, 2027. It would also prohibit the Michigan Department of Environment, Great Lakes, and Energy from issuing permits or authorizations for data centers during that period. 

The legislation would further prohibit a person from beginning operation of a data center until April 1, 2027. 

Runestad’s legislation defines a data center as a facility composed of one or more buildings designed and intended to house equipment used to centralize the storage and processing of data. 

Violations of the bill would carry a civil fine of up to $1,000 per day.

Senate Bill 1019

Senate Bill 1019 would amend Michigan’s Zoning Enabling Act by adding the proposed Data Center Regulation Act to the list of laws that local zoning ordinances must follow. 

In practice, the bill would ensure that local governments are required to comply with the statewide moratorium established under Senate Bill 1018.

Senate Bill 1020

Senate Bill 1020 would amend Public Act 3 of 1939 by prohibiting the Michigan Public Service Commission from approving contracts, tariffs, discounts or rates between electric utilities and qualified data centers until April 1, 2027. 

Like Senate Bill 1018, the bill defines a data center as a facility composed of one or more buildings used to centralize the storage and processing of data. 

Taken together, the three bills would pause new data center approvals, operations and certain utility agreements throughout Michigan until April 1, 2027. 

All three bills were introduced June 4 and referred to the Senate Committee on Government Operations, where they await hearings. 

Maxwell Knauer is a staff writer for Watershed Voice.