MEMJ Calls for Enforceable Ratepayer Protections, Clean Energy Accountability, and Stronger Guardrails Before Any Legislation Advances
LANSING, MI — The Michigan Energy Michigan Jobs (MEMJ) coalition responded today to the slate of bills introduced by members of the Michigan House on both sides of the aisle to establish statewide standards for large-scale data center development. The coalition recognizes this bipartisan willingness to act, but emphasizes that the final legislation must be significantly stronger to adequately protect Michigan ratepayers, communities, natural resources, and the electric grid as large-scale data center projects accelerate across the state.
"These bills represent an important recognition that Michigan needs statewide standards for data center development," said Sergio Cira-Reyes, Climate Justice Catalyst, Urban Core Collective. "Residents deserve certainty that new development won't compromise clean energy progress, affordability, reliability, public health, or the needs of the communities where these facilities are built, and that means binding protections, not voluntary commitments."
The coalition supports members of the House on both sides of the aisle for their willingness to act on rapid data center growth. Yet while the slate of bills begin to address real issues, including infrastructure costs, community input, water and impacts, and utility oversight, MEMJ said key bill provisions as introduced lack the enforcement mechanisms needed to protect Michigan families and small businesses, and must do more to uphold and build upon the state's 2023 clean energy standards. The coalition pointed to recent IMPACT Research polling showing that while Michigan voters are skeptical of unchecked data center development, they overwhelmingly support requiring developers to pay their own costs, protect water resources, and invest in clean energy.
Additionally, the coalition noted that transparency measures like banning nondisclosure (NDA) agreements tied to tax incentives and requiring decommissioning plans are a start, but cannot substitute for enforceable ratepayer protections and clear accountability for monopoly utilities, including a stronger minimum billing demand threshold that ensures data centers bear the true costs they place on the grid.
"Data centers may bring some jobs and investment. But an investment that shifts costs onto families when we already have rising utility bills is not a win. While these bills are a start to ratepayer and community protection they don’t go far enough, and no new data centers should be built until comprehensive ratepayer, community and environmental protections are in place," said Alexis Blizman, Policy Director, Ecology Center.
As legislation moves forward, MEMJ will continue working with lawmakers in both chambers to ensure data center companies bear the costs they create, communities and water resources are protected, and Michigan's clean energy commitments are not compromised.The coalition looks forward to continued engagement with House and Senate members to ensure the final framework delivers lasting protections for ratepayers, communities, and Michigan's clean energy future.
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About Michigan Energy Michigan Jobs
Michigan Energy Michigan Jobs is a broad, bipartisan coalition committed to transitioning to clean energy, holding utilities accountable, and saving money through energy efficiency. Learn more at mienergymijobs.com.