Michigan lawmakers propose state-wide data center moratorium

State legislators in Michigan have introduced a package of bills to pause all new data center projects until April 1, 2027. Senate Bills 1018‑1020 and House Bills 5594‑5596, sponsored by Sen. Jim Runestad and Rep. Jennifer Wortz, would impose a moratorium to let lawmakers study the industry’s impact on water supplies, electric bills, farmland and local infrastructure.

Lawmakers also seek to repeal recent tax breaks for data‑center equipment, apply automotive‑plant environmental standards, limit water use, require facilities to cover power‑service costs and ban nondisclosure agreements with local officials. The tax‑break program approved in 2025 could cost state and local governments $52.5 million to $90 million, funds that otherwise support schools, roads and emergency services.

Local officials and residents have voiced opposition, warning that data centers threaten farmland and increase utility demands. One resident said, "I realize with technology there has to be a place to store our data, but I am tired of them coming after good farm ground…" and Sen. Runestad added, "The fact that they're not supporting a moratorium … tells me this is fluff." Meanwhile, a separate 12‑month moratorium took effect on July 5 in Texas Township, Kalamazoo County, reflecting growing community resistance across the state.