Tax Exemptions for Large Data Centers

SB 237 and HB 4906, now law, extend tax exemptions for large data centers in Michigan through 2050, and through 2065 for those on brownfield or former power plant sites. Michigan LCV advocated for protections to prevent ratepayer cost hikes and ensure renewable energy would power these centers. However, these protections were not sufficiently included, and lawmakers missed an opportunity. We are seeing in states around the country increased energy demand from data centers leading to significant rate hikes for customers, and the build out of new fossil fuel energy facilities. Finally, the bills require municipal water connection, which is positive, but they don’t require efficient, renewable energy use or water conservation, and therefore fail to protect Michigan’s natural resources. This missed opportunity leaves Michigan vulnerable to the same issues that have arisen in other states.