Bill Text: MI SB1179 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Energy: other; reporting requirements for data centers; provide for. Creates new act.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-09-10 - Referred To Committee On Energy And Environment [SB1179 Detail]
Download: Michigan-2025-SB1179-Introduced.html
SENATE BILL NO. 1179
A bill to require that certain data centers provide certain reports; and to prohibit certain conduct and prescribe civil sanctions.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "data center transparency and accountability act".
(a) "Covered project" means a project to construct a new data center or expand an existing data center that requires local land use approval or a building permit, or both.
(b) "Data center" means a facility in this state that is composed of 1 or more buildings and that is primarily designed or used to house and operate data center equipment for the purpose of centralizing the storage, processing, management, or dissemination of data, including facilities operated for the owner's exclusive use and facilities that provide those functions for third parties.
(c) "Fund" means the data center community benefit fund created in section 11.
(d) "Utility costs" means the capital and operational expenses incurred by an electric utility, municipally owned utility, or water or wastewater provider to generate, transmit, or deliver electricity, water, or wastewater services to a covered project, including, but not limited to, the costs of new power generation, distribution lines, transmission lines, substations, transformers, water mains, and related infrastructure.
Sec. 5. (1) Before a person begins a covered project, the person shall submit to the local unit of government in which the covered project is located a data center disclosure and impact statement. The data center disclosure and impact statement must include all of the following information:
(a) The name of the owner or operator and the location of the covered project.
(b) A description of the buildout phases of the covered project.
(c) The projected electric demand described in peak megawatt hour usage and annual megawatt hour usage for each buildout phase described in subdivision (b).
(d) The projected water withdrawal or consumptive use described in gallons withdrawn or used per day, on average, for each buildout phase described in subdivision (b).
(e) A list and estimated value of all state and local incentives, abatements, credits, or grants that the person applied for and has or is expected to receive.
(f) A description of both of the following:
(i) The projected number of temporary jobs.
(ii) The projected number of permanent, full-time jobs created by the end of year 3 of the covered project and created after the data center is fully operational.
(g) A list of the wage ranges for the jobs described in subdivision (f).
(h) All of the following information regarding utility costs:
(i) The utility costs that will be paid by the data center.
(ii) The utility costs that will be covered by the utility.
(iii) The utility costs that may be recovered or otherwise paid by other ratepayers in the area in which the covered project is located.
(i) A description of any requested special rates or utility-funded upgrades.
(j) A plan for complying with the requirements of the data center resource responsibility and accountability act.
(2) Not less than 60 days before any local land use approval or decision is made regarding a covered project, a local unit of government shall publicly post on its website any data center disclosure and impact statement submitted under subsection (1). The local unit of government shall maintain the data center disclosure and impact statement on its website until the covered project is completed or abandoned, whichever occurs first.
(3) If the local unit of government determines that a data center disclosure and impact statement submitted under subsection (1) contains an error or omission, the local unit of government shall notify the data center, in writing, of the error and request a corrected disclosure and impact statement. The data center shall submit a corrected data center disclosure and impact statement not later than 30 days after the notice is received.
Sec. 7. (1) A person that submits a data center disclosure and impact statement under section 5 that contains a materially false statement or omission is responsible for a civil fine of $10,000,000.00, 1% of the covered project's capital investment, or 3 times the total value of incentives received, whichever is greater.
(2) In addition to the fine described in subsection (1), a person is responsible for an additional civil fine of $50,000.00 per day for failure to correct the data center disclosure and impact statement after written notice is given under section 5(3).
(3) In addition to the fines in subsections (1) and (2), if the number of permanent jobs is below the projected number described in section 5(2)(f)(ii), the person is responsible for both of the following:
(a) A fine of $250,000.00 per missing permanent job.
(b) The costs of any incentives received per missing permanent job.
(4) The prosecutor of the county in which the violation occurred or the attorney general may bring an action to collect the fines described in this section. A fine collected must be deposited in the fund.
Sec. 9. A data center is prohibited from receiving any state or local incentive for a period of 5 years after a final judgment is entered under section 7 if either of the following applies:
(a) The person submits a data center disclosure and impact statement under section 5 that contains a materially false statement or omission.
(b) The number of permanent jobs is below the projected number described in section 5(2)(f)(ii) by more than 50%.
Sec. 11. (1) The data enter community benefit fund is created within the state treasury.
(2) The state treasurer may receive money or other assets from any source for deposit into the fund. The state treasurer shall direct the investment of the fund and credit to the fund interest and earnings from fund investments. Money in the fund at the close of the fiscal year remains in the fund and does not lapse to the general fund.
(3) The department of treasury is the administrator of the fund for audits of the fund.
(4) Money in the fund may be expended, on appropriation, to provide funds to local units of government where covered projects are located to do either of the following:
(a) Improve infrastructure, including, but not limited to, water and wastewater infrastructure.
(b) Improve or enhance public safety.
Enacting section 1. This act does not take effect unless Senate Bill No. ____ (request no. S05978'25) or House Bill No. ____ (request no. H05978'25) of the 103rd Legislature is enacted into law.
