By Nick Smith
Gongwer News Service
Despite the increasing pushback on data centers from the public, lawmakers are divided over when or whether legislative action will be taken to enact any additional regulations.
The issue of data centers has drawn scrutiny over the past year. It began in earnest in December 2025, when the Public Service Commission unanimously approved contracts for DTE Energy Company to power the hyperscale data center in Saline Township.
The contracts were approved on an ex parte basis, which bypassed the public hearing process and angered opponents of the proposed project. Concerns raised by opponents and some area residents included impacts on the environment, grid reliability and the possible shift of costs onto other customers.
Several conditions were included in the contracts that commission members said would address concerns, such as preventing cost shifts to residential customers.
The issue has since drawn more public scrutiny and has led to lawmakers introducing various data center bills this session.
House Democrats introduced a bill package that would enact regulations for water usage requirements, reporting requirements, processes for the decommissioning of data centers and site remediation. Senate Democrats introduced their own versions of similar proposals.
Sen. Jim Runestad, R-White Lake, introduced legislation to set a moratorium on the approval of data center projects to allow time for the state to enact regulations. He also plans to introduce legislation to repeal tax incentives for certain data centers that were approved last session.
Runestad said a moratorium is the better route to get regulations on data centers right. He said the bill package from the Democrats has not been subject to any hearings and is for little more than show.
“I don’t think they will do anything,” Runestad said.
He pointed out Secretary of State Jocelyn Benson’s husband, who works for a company involved in the development of the Saline data center. Her husband, according to reports earlier this year, moved to a different role within the company to avoid any conflict of interest.
Sen. Kevin Hertel, D-Saint Clair Shores, called the Senate bill package that he and his colleagues introduced one of the most complete sets of proposals to govern data centers.
Hertel said it would protect ratepayers, improve transparency in the process of approving such projects and hold large corporations accountable. He added that the bills were, in part, crafted by looking at problems that occurred in other states and seek ways to avoid those mistakes.
“I think it’s possible to get it done this year if people can come together in a serious manner,” Hertel said, adding that if not, the issue will be ready to go to the next session and it would be a top priority for him to push in the coming year.
The senator said his preference is to enact a full bill package rather than a moratorium.
“That’s just kicking the can down the road. I think we should be able to get it done now,” Hertel said.
He added that the issue of addressing data center regulations is bipartisan, and politics do not need to factor into getting something done.
A major issue for Runestad was the use of nondisclosure agreements for local officials involved in discussions about data centers being located in their communities. He questioned what those who have signed NDAs are getting out of such agreements.
If the state were serious about addressing data centers, he said, lawmakers would enact a moratorium and then bring stakeholders to the table for serious talks on policy.
“If you moratorium this now, you get both sides coming together,” Runestad said, adding that developers would realize if they want to locate in Michigan, they will come to the table.
Further priorities for Runestad are concrete provisions in statute to prevent the cost of data centers from being passed on to other ratepayers and maintaining a level of local control for communities over such projects.
As approved by the PSC in December 2025, the DTE contracts included a power supply agreement that would generate an affordability benefit to DTE’s other customers to spread out the company’s fixed risks.
The minimum duration of the contracts is 19 years, compared to a standard agreement of five years. The minimum billing demand was set at 80% of the contract electricity instead of the traditional 50-60%, even if the entire amount of electricity is not used, and a termination payment of up to 10 years in billing demand if the facility ceases operations earlier than contracted.
Other requirements included having the company file a renewable energy plan, a clean energy plan and an analysis of the utility’s capacity compared to the data center’s usage need and an energy waste reduction plan.
PSC Chair Dan Scripps told Gongwer News Service following the commission’s most recent meeting that ideally the Legislature would codify the stipulations it has used for data centers, which he said are among the strongest of any state in the country and provide protections for ratepayers.
Gongwer News Service
Despite the increasing pushback on data centers from the public, lawmakers are divided over when or whether legislative action will be taken to enact any additional regulations.
The issue of data centers has drawn scrutiny over the past year. It began in earnest in December 2025, when the Public Service Commission unanimously approved contracts for DTE Energy Company to power the hyperscale data center in Saline Township.
The contracts were approved on an ex parte basis, which bypassed the public hearing process and angered opponents of the proposed project. Concerns raised by opponents and some area residents included impacts on the environment, grid reliability and the possible shift of costs onto other customers.
Several conditions were included in the contracts that commission members said would address concerns, such as preventing cost shifts to residential customers.
The issue has since drawn more public scrutiny and has led to lawmakers introducing various data center bills this session.
House Democrats introduced a bill package that would enact regulations for water usage requirements, reporting requirements, processes for the decommissioning of data centers and site remediation. Senate Democrats introduced their own versions of similar proposals.
Sen. Jim Runestad, R-White Lake, introduced legislation to set a moratorium on the approval of data center projects to allow time for the state to enact regulations. He also plans to introduce legislation to repeal tax incentives for certain data centers that were approved last session.
Runestad said a moratorium is the better route to get regulations on data centers right. He said the bill package from the Democrats has not been subject to any hearings and is for little more than show.
“I don’t think they will do anything,” Runestad said.
He pointed out Secretary of State Jocelyn Benson’s husband, who works for a company involved in the development of the Saline data center. Her husband, according to reports earlier this year, moved to a different role within the company to avoid any conflict of interest.
Sen. Kevin Hertel, D-Saint Clair Shores, called the Senate bill package that he and his colleagues introduced one of the most complete sets of proposals to govern data centers.
Hertel said it would protect ratepayers, improve transparency in the process of approving such projects and hold large corporations accountable. He added that the bills were, in part, crafted by looking at problems that occurred in other states and seek ways to avoid those mistakes.
“I think it’s possible to get it done this year if people can come together in a serious manner,” Hertel said, adding that if not, the issue will be ready to go to the next session and it would be a top priority for him to push in the coming year.
The senator said his preference is to enact a full bill package rather than a moratorium.
“That’s just kicking the can down the road. I think we should be able to get it done now,” Hertel said.
He added that the issue of addressing data center regulations is bipartisan, and politics do not need to factor into getting something done.
A major issue for Runestad was the use of nondisclosure agreements for local officials involved in discussions about data centers being located in their communities. He questioned what those who have signed NDAs are getting out of such agreements.
If the state were serious about addressing data centers, he said, lawmakers would enact a moratorium and then bring stakeholders to the table for serious talks on policy.
“If you moratorium this now, you get both sides coming together,” Runestad said, adding that developers would realize if they want to locate in Michigan, they will come to the table.
Further priorities for Runestad are concrete provisions in statute to prevent the cost of data centers from being passed on to other ratepayers and maintaining a level of local control for communities over such projects.
As approved by the PSC in December 2025, the DTE contracts included a power supply agreement that would generate an affordability benefit to DTE’s other customers to spread out the company’s fixed risks.
The minimum duration of the contracts is 19 years, compared to a standard agreement of five years. The minimum billing demand was set at 80% of the contract electricity instead of the traditional 50-60%, even if the entire amount of electricity is not used, and a termination payment of up to 10 years in billing demand if the facility ceases operations earlier than contracted.
Other requirements included having the company file a renewable energy plan, a clean energy plan and an analysis of the utility’s capacity compared to the data center’s usage need and an energy waste reduction plan.
PSC Chair Dan Scripps told Gongwer News Service following the commission’s most recent meeting that ideally the Legislature would codify the stipulations it has used for data centers, which he said are among the strongest of any state in the country and provide protections for ratepayers.
––––––––––––––––––––
Subscribe to the Legal News!
https://www.legalnews.com/Home/Subscription
Full access to public notices, articles, columns, archives, statistics, calendar and more
Day Pass Only $4.95!
One-County $80/year
Three-County & Full Pass also available
