Bill Text: MI SB1050 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Businesses: other; community benefit agreements; require certain data centers to be subject to. Creates new act.
Sponsorship: Partisan Bill (Democrat 9)
Status: (Introduced) 2026-08-26 - Senate Co-sponsor(s) Named: Jeremy Moss [SB1050 Detail]
Download: Michigan-2025-SB1050-Introduced.html
SENATE BILL NO. 1050
A bill to require certain data centers to be subject to community benefit agreements; to provide for the review and approval of community benefit agreements; to provide for the powers and duties of certain state and local governmental officers and entities; and to provide for the promulgation of rules.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "data center community benefit act".
(a) "Commission" means the Michigan public service commission created in section 1 of 1939 PA 3, MCL 460.1.
(b) "Community benefit agreement" means 1 or more binding legal agreements between the owner or operator of a data center and a local unit of government or other community stakeholders under which the owner or operator agrees to pay for or provide certain resources to accommodate and benefit local community interests.
(c) "Data center" means a facility in this state that is composed of 1 or more buildings and that is designed and intended for housing, and does house, data center equipment to centralize the storage and processing of data.
(d) "Local unit of government" means a county, township, city, or village.
(e) "Person" means an individual or a partnership, corporation, limited liability company, association, governmental entity, or other legal entity.
Sec. 5. (1) A person shall not begin construction or operation of a data center unless all of the following conditions are met:
(a) The owner or operator files an application with the local unit of government in which the data center is to be constructed or operated for review of a community benefit agreement in accordance with subsection (2).
(b) The local unit of government approves the community benefit agreement under subsection (2).
(c) The owner or operator enters into the community benefit agreement approved by the local unit of government under subsection (2).
(2) In order to obtain approval for a community benefit agreement under this section, the owner or operator of a data center must file an application for review with the local unit of government in which the data center is to be constructed or operated. The application must be on a form prescribed by the local unit of government. Not later than 90 days after receiving an application under this subsection, the local unit of government shall approve or deny the application. The local unit of government shall not approve the community benefit agreement unless the local unit of government determines that both of the following conditions are met:
(a) The parties to the community benefit agreement include, but are not limited to, the owner or operator of the data center and the local unit of government or an agency or instrumentality of the local unit of government.
(b) The community benefit agreement will accommodate and benefit the public health, safety, and general welfare of the inhabitants and the lands and resources of the local unit of government.
Sec. 7. A local unit of government may deny or refuse to issue, grant, or approve a site plan, permit, land use or activity, variance, easement, certificate, or other authorization for a data center if the local unit of government has not approved a community benefit agreement for the data center under section 5.
Sec. 9. The commission may promulgate rules to implement this act under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
