Why It Matters
Michigan is emerging as one of the most active states in the country for large-scale data center development, and the debate over how to regulate that growth has moved to the center of the state’s 2026 U.S. Senate race. State Senator Mallory McMorrow has released a detailed policy framework aimed at ensuring Michigan data centers are built and operated in ways that protect ratepayers, fund public services, and prioritize green energy infrastructure.
The plan addresses growing concerns in communities across Michigan about the environmental footprint, utility cost impacts, and lack of transparency that have accompanied a surge in data center proposals statewide.
What Happened
On Thursday, March 27, McMorrow, a Democratic state senator from Royal Oak and U.S. Senate candidate, released a seven-point policy plan outlining how Michigan should regulate hyperscale digital infrastructure development. The plan was unveiled as opposition to data centers has grown among voters from across the political spectrum in communities where large facilities have been proposed.
The proposal centers on green energy requirements, ratepayer protections, tax revenue accountability, union labor standards, and the prohibition of secret agreements between technology companies and local governments. McMorrow framed the plan as a model for other states to follow, drawing a comparison to Michigan’s history of reforming the automobile manufacturing industry.
“When it comes to data centers, Michigan has an opportunity to show the country how to do it right,” McMorrow said in a statement. “That means data center companies, not Michigan families, will pay for their own energy, grid upgrades for the benefit of all ratepayers; pay their fair share in taxes to fund our schools, roads, and communities; and pay our workers by creating good-paying union jobs.”
McMorrow’s campaign also addressed concerns over a potential conflict of interest involving her husband and his work with a nuclear generator startup that is focused on powering data centers.
Key Provisions of the Plan
The centerpiece of McMorrow’s proposal is a requirement that data center developers bear 100 percent of the costs for power generation, transmission lines, and grid infrastructure needed to serve their facilities. Under the framework, Michigan ratepayers would be shielded from utility rate increases driven by data center growth and expansion.
The plan also calls for mandatory investment by developers in grid infrastructure improvements, with the goal of expanding high-speed internet access to rural communities and reducing utility costs for low-income residents. Green energy would be required as the primary power source for new data center developments.
Additional provisions include requirements that developers pay prevailing wages and employ union labor, and that all agreements between technology companies and local governments be made publicly available. Secret deals or non-disclosure arrangements that limit community oversight would be prohibited under the proposal.
By the Numbers
- More than 15 new data center proposals have been submitted to communities across Michigan in recent months.
- One of the largest proposed facilities, planned by Oracle and OpenAI and being developed by Related Digital, would consume 1.4 gigawatts of power.
- McMorrow’s plan includes a seven-point framework covering energy sourcing, cost allocation, taxation, labor standards, and government transparency.
- Under the proposal, developers would be responsible for 100 percent of upfront infrastructure, generation, and transmission costs.
- Grid improvements funded by developers could expand broadband access and reduce utility rates for rural and low-income Michigan households.
Zoom Out
Michigan is not alone in grappling with the rapid expansion of data center infrastructure. Across the United States, states including Virginia, Texas, Georgia, and Arizona have seen significant data center growth driven by demand for cloud computing, artificial intelligence, and digital storage. Concerns about power grid strain, water consumption, local tax impacts, and community transparency have sparked regulatory debates in many of those states as well.
The federal government has also taken increasing interest in data center policy, particularly as AI-driven energy demand is projected to place new pressure on national power grids. McMorrow’s proposal positions Michigan as a potential policy leader in setting standards that other states could replicate.
What’s Next
McMorrow is expected to use the data center policy framework as a central element of her 2026 U.S. Senate campaign platform. Whether the individual provisions advance through the Michigan state legislature as standalone bills or are incorporated into a broader infrastructure or energy policy package remains to be seen.
Advocates and opponents of the current wave of data center proposals across Michigan are likely to respond to the plan in the coming weeks. Community hearings and regulatory reviews related to several of the pending facilities, including the Oracle and OpenAI project, are ongoing.