Michigan Lawmaker Proposes Guardrails for Data Center Expansion

As Michigan faces a stagnant population and an aging workforce, state leaders are considering how to position the region for future economic growth. House Rep. Mark Tisdel, R-Rochester Hills, is calling for Michigan to embrace the expansion of data centers-critical infrastructure for artificial intelligence and automation-while establishing clear rules to protect communities and resources.

Michigan's manufacturing legacy has long been a driver of the state's economy, but with the American Enterprise Institute ranking Michigan 41st in available labor, automation and AI are seen as essential to maintaining competitiveness. Rochester Hills and neighboring Auburn Hills already lead North America in industrial robot production, and data centers are expected to play a key role in powering the next generation of smart manufacturing.

Land Use Priorities

Tisdel recommends that new data centers be located on former industrial sites in cities such as Detroit, Flint, Saginaw, Lansing, and Bay City. These properties often have existing infrastructure and utilities, making them suitable for redevelopment. He suggests the state consider reimbursement grants to prepare these sites, which could help return abandoned properties to the tax rolls and strengthen local economies.

Water Management

Data centers require significant water for cooling, raising concerns about resource use. Michigan's abundant freshwater resources offer an advantage, but Tisdel proposes that data centers return municipal water to the same watershed whenever possible. Facilities using groundwater should implement closed-loop systems to recycle water and avoid depleting aquifers. He notes that Michigan's cooler climate reduces the need for water-intensive cooling compared to other states, and points out that golf courses and other uses already consume billions of gallons annually.

Electricity and Grid Protection

With data centers demanding large amounts of electricity, Tisdel argues that these facilities should not connect directly to the public electrical grid. Instead, he proposes that data centers generate their own power on-site or contract with local utilities for dedicated supply, ensuring that increased demand does not impact residential or business customers.

Noise and Light Standards

To address noise concerns, Tisdel recommends that data centers built on industrial land follow existing local noise ordinances. For those located elsewhere, local regulations should apply. He also notes that communities already have zoning tools to manage light pollution from 24-hour operations, similar to those used for manufacturing plants.

Natural Gas Storage

Michigan's extensive underground natural gas storage could support data centers that use clean natural gas for on-site power generation. Tisdel suggests these facilities take advantage of the state's infrastructure when practical.

According to Tisdel, data centers represent a new form of manufacturing that can help Michigan remain an economic leader. He argues that with the right guardrails, the state can attract this industry while protecting local resources and communities.

Michigan's approach to data center development will likely involve coordination between state agencies, local governments, and utility providers. Redeveloping former industrial sites may require environmental assessments and infrastructure upgrades, while water and energy policies will need to balance economic growth with sustainability. As the state considers these proposals, public input and regulatory review will shape how data centers fit into Michigan's economic future.