2026 House Resolution 240

Whereas, The state of Michigan has recently enacted and expanded incentive programs intended to attract large-scale data center development. These incentives have resulted in a growing number of proposed data center facilities across Michigan, many of which involve significant electricity demand, water use, and infrastructure expansion; and

Whereas, Residents and local governments have raised concerns regarding transparency, long-term fiscal impact, and cumulative effects of data center incentives on utility rates, natural resources, and local infrastructure. Local units of government have also expressed the need for clearer processes related to land use planning, zoning authority, and community input for large-scale data center siting decisions; and

Whereas, Rising electric rates and grid reliability remain critical issues for Michigan households, small businesses, and manufacturers, and it is necessary to understand how increased data center load may affect grid capacity and ratepayer costs; and

Whereas, Jobs that are created by data center construction should be prioritized for local union employees and offer prevailing wages; and

Whereas, It is the intent of the House of Representatives to ensure Michigan remains competitive for economic development while protecting taxpayers, ratepayers, natural resources, and local communities through transparency and responsible oversight; and

Whereas, A deliberate and structured review of current incentive practices and infrastructure impacts will strengthen accountability and ensure Michigan’s economic development policies serve the long-term interests of taxpayers, ratepayers, and local communities; now, therefore, be it

Resolved by the House of Representatives, That we urge the Governor, the Michigan Strategic Fund, the Michigan Public Service Commission, and other relevant state agencies to implement a one-year pause on discretionary benefits for data center facilities; and be it further

Resolved, That we urge the Michigan Strategic Fund to prepare a fiscal analysis evaluating the net economic impact of existing and proposed data center incentives, including foregone tax revenue and local infrastructure costs; and be it further

Resolved, That we urge the Michigan Public Service Commission to conduct an assessment of projected electric load growth associated with data centers, potential impacts on grid reliability, and implications for ratepayer costs; and be it further

Resolved, That we urge the Department of Environment, Great Lakes, and Energy to evaluate water withdrawals, wastewater management, stormwater impacts, and land use considerations associated with data center development; and be it further

Resolved, That we urge the preceding agencies to complete their reports within twelve months of the adoption of this resolution; and be it further

Resolved, That the House Oversight Subcommittee on Corporate Subsidies and State Investments shall review local government participation, zoning authority, and community benefit practices related to large-scale data center siting; and be it further

Resolved, That the House Committee on Energy shall receive testimony from local officials, concerned residents, utilities, ratepayer advocates, environmental experts, and economic development stakeholders; and be it further

Resolved, That copies of this resolution be transmitted to the Governor of Michigan, the Chair of the Michigan Strategic Fund, the Chair of the Michigan Public Service Commission, the Chair of the House Oversight Subcommittee on Corporate Subsidies and State Investments, the Chair of the House Committee on Energy, and the Director of the Department of Environment, Great Lakes, and Energy.