Trio of Michigan Senate Democrats introduce policy to address data center water usage

Data centers are hubs for information technology equipment including servers, storage systems, networking equipment and other hardware for storing and distributing data. These facilities act as the infrastructure for web-based services and are used in developing artificial intelligence.

However, these facilities demand large amounts of energy to operate and large amounts of water to cool the machinery inside, with environmental and consumer advocacy watchdogs warning these facilities can herald skyrocketing energy rates while harming drinking water access in nearby communities.

In response, state Sens. Rosemary Bayer (D-West Bloomfield), Sue Shink (D-Northfield Township) and Erika Geiss (D-Taylor) have introduced three bills to begin regulating the influx of data center facilities aiming to set up shop in Michigan.

Bayer’s Senate Bill 761 would bar entities withdrawing above an average of 2,000,000 gallons of water per day for consumptive use – where the water is lost and is not returned to the system – from obtaining a water withdrawal permit.

Shink’s Senate Bill 762 would create transparency standards on how much water and energy these facilities use, by requiring the Michigan Public Service Commission to publish annual reports regarding the total energy expenditures and water usage of data centers.

Geiss’s Senate Bill 763 would bar water utilities from passing off the infrastructure costs to accommodate a data center onto residential customers.

“We have seen hyperscale data center projects proposed in Saline, Battle Creek, Mason, and many other places throughout Michigan,” Bayer said in a statement. “Residents of these communities are rightfully concerned, and by implementing additional guardrails, we can protect our constituents and our natural resources.”

Alongside support from other Senate Democrats, Sen. Jon Bumstead (R-Norton Shores) has also joined the bills as a cosponsor. The package was referred to the Senate Committee on Energy and Environment for consideration.

Originally published by Michigan Advance, a nonprofit news organization.