Michigan State Rep Introduces Bill to Force Data Centers to Register and Disclose Environmental Impact

State Rep. Reggie Miller's new legislation would require data centers to register with Michigan and publicly report their energy and water consumption, marking a significant shift toward transparency in one of the state's fastest-growing industries.

When the Michigan State House returns next week, lawmakers will have a pair of data center bills to consider, one of which would fundamentally change how tech companies interact with the public in the state.

The legislation, introduced by Van Buren Township Democrat Reggie Miller, would require data centers to register with the state and disclose their operational impacts, including energy and water use. It would also mandate financial safeguards to address potential environmental risks or decommissioning costs.

"It would require the centers to register with the state and disclose operational impacts, like energy and water use," WEMU reporter Kevin Meerschaert reported. "It would mandate financial safeguards for possible environmental risks or decommissioning."

The second bill from Miller would close loopholes that allow colleges and universities to access local property tax abatements meant for education facilities or economic development, preventing what his chief of staff Jackson Pahle calls "double dipping on tax incentives."

"Colleges are still able to build them. This is not a moratorium or a ban or anything, but it's just so that colleges and these data centers aren't double dipping on tax incentives," Pahle said.

Miller's approach represents a middle ground in a contentious debate. While at least 19 Michigan communities have passed or proposed moratoriums on new data centers, and some legislators are considering bills that would pause all new projects until 2027, Miller's proposal focuses on transparency rather than prohibition.

The data center debate has intensified as tech companies like Oracle, Google, and Microsoft pursue massive expansion plans across Michigan. An Oracle facility in Saline Township has attracted attention for a potential $14 billion financing deal involving PIMCO and Bank of America. Google's proposed data center in Van Buren Township includes a 20-year agreement with DTE Energy to fund its own power needs while adding 2.7 gigawatts of new energy to the grid.

U.S. Senate candidate Mallory McMorrow has also pushed for data center regulation, proposing a federal ban on nondisclosure agreements that keep communities in the dark about tech company plans. She released a policy plan in March 2026 calling for better regulation of hyperscale digital infrastructure with a focus on green energy.

McMorrow's position reflects growing frustration across Michigan. In Pine Island, Minnesota, residents learned about a proposed data center only after signing nondisclosure agreements prevented officials from sharing information for two years. Even a local state legislator was left out of the loop until the day before the project was formally announced.

The data center industry argues that such agreements protect proprietary information, but critics say they prevent communities from evaluating potential impacts before signing deals. In Michigan, bills have advanced in the Senate to ban or limit economic development-related nondisclosure agreements.

"Data centers are the infrastructure that makes modern life possible," the opinion piece in The Holland Sentinel noted. "Inside their walls, thousands of computer servers move data that powers everything from streaming movies and sending emails to online shopping and remote work."

The article continued, noting that data centers can bring economic benefits. In Van Buren Township, Google's deal could deliver $1.7 billion in long-term benefits without raising residential rates. Property taxes from data centers in Loudoun County, Virginia, now account for a third of the county's revenue, helping fund schools and roads.

Yet the concerns remain substantial. Data centers require significant amounts of water and energy, and their construction has sparked protests across Michigan. Kalkaska County has already shut down a proposed data center despite promises of employment and high-speed fiber. Detroit is considering a two-year moratorium while weighing a newly proposed facility.

Miller's bills would not stop these developments. Instead, they would force companies to operate with greater accountability, ensuring that Michigan residents have access to information about the projects affecting their communities and environment.

The legislation's fate will be decided when the Michigan State House reconvenes next week, adding to the growing list of data center-related bills that have advanced through committee in recent months.