LANSING — Michigan Senate Democrats introduced a package of eight bills on June 18, 2026, intended to regulate data center developments. State Senators Darrin Camilleri, Mallory McMorrow, Kevin Hertel, and Rosemary Bayer presented the proposed regulations at a press conference in Lansing.

The legislation includes a limit on data center water use at 2 million gallons per day. It also prohibits data center projects from increasing electricity rates for other customers. Additionally, data center operations would be required to include community benefits agreements negotiated for the areas where they are located. One of the proposed bills would prevent public officials from entering non-disclosure agreements concerning data centers, and another would mandate annual reports from the Michigan Public Service Commission on data centers' water use and total energy consumption.

State Senator Mallory McMorrow stated the policies would represent "the most robust" data center regulations in the country if implemented. McMorrow also said, "The answer isn't to pretend that this technology isn't coming. It is not only coming. It is already here. The question in front of us is whether Michigan sets the terms or whether we let someone else set them for us." State Senator Darrin Camilleri added, "The bottom line is that our neighbors' voices need to be centered when conversations around data center projects occur."

In December 2024, state regulators approved contracts between DTE Energy Co. and an Oracle Corp. subsidiary for a data center development in Saline Township. OpenAI and Oracle announced a $16 billion investment in this Saline Township data center, which is planned to cover 250 acres and is expected to consume 1.4 gigawatts of energy. Also in December 2024, Governor Gretchen Whitmer signed legislation that provided sales tax breaks for large data centers.

The bills require passage in both the Democratic-led Senate and the Republican-led House before reaching Governor Whitmer. House Speaker Matt Hall indicated he would support updates to state law that mandate closed-loop systems and guarantee data centers do not raise energy rates for other users. Hall stated, "I would support making changes to the law that do that. I've not seen the Democrats' proposal, but we'll take a look at it."