Data Center Boom Sparks Legislative Action on Water Use in Michigan

New state legislation in Michigan aims to regulate water usage and infrastructure costs linked to the rapid expansion of data centers. Introduced on December 18, 2025, the three bills, sponsored by state Democrats like Senator Rosemary Bayer, seek to address public concerns over rising utility costs and environmental impacts.

Senate Bill 761 prohibits permits for facilities that withdraw over 2 million gallons of water daily for consumptive use, while Senate Bill 762 mandates annual reports on data center energy and water usage.

Additionally, Senate Bill 763 prevents the passing of infrastructure improvement costs onto residential ratepayers. These legislative measures come amid growing public opposition and rising concerns regarding the environmental implications of hyperscale data centers in Michigan, which are being proposed in various locations such as Saline and Battle Creek.

Data centers, essential for powering AI operations and cloud computing, have faced scrutiny for their significant water and energy consumption, prompting lawmakers to implement protective regulations to safeguard natural resources and community interests.