As large technology companies expand and look to expand their presence across Michigan, concerns have grown about water use, infrastructure strain, and whether “big tech” is being adequately regulated. In response, Michigan lawmakers have introduced a package of three bills aimed squarely at one of the biggest worries of protecting our Great Lake State’s water resources.
Foremost, if passed, the bills would not stop data centers or other large industrial users from operating in Michigan. But they would place new guardrails on how much water can be taken, how decisions are made, and who pays when demand increases.
Here’s what the legislation would do, and where it is limited.
These bills are about water
At their core, the bills focus on large-scale water withdrawals, aimed at the kind of usage data centers and major industrial facilities consume in millions of gallons per day.
Under Senate Bill 761, any new or expanded withdrawal above very high thresholds would require a state-issued water withdrawal permit 2025-SIB-0761. Before a permit could be approved, the state would have to determine that:
- Rivers, streams, and groundwater would not be harmed
- The withdrawal complies with Michigan law and Great Lakes protections
- The use is reasonable, not excessive
- Water conservation practices are in place
- Public and private water rights are protected
Just as importantly, the process would include public notice and a minimum 45-day public comment period, giving communities a chance to weigh in before decisions are finalized.
For residents worried about “runaway” water use, this is a significant move. It moves large withdrawals out of the shadows and into a formal review process.
Who pays when water demand increases? Not residents
Another major concern has been whether local residents end up footing the bill when a massive new user strains public systems.
Senate Bill 763 addresses that directly.
If a company already has a water withdrawal permit and later wants to increase its water use, and that increase requires new infrastructure, such as pipes, pumps, or system upgrades, the company must pay for it.
The cost cannot be passed on to the public through higher water rates.
This provision is aimed at the fear that communities would subsidize private expansion without seeing direct benefits in return.
Electricity: transparency, but no new limits
A big concern of residents in Saline Township was who would foot the bill for the large electrical infrastructure required for the data center. These bills do not address that.
While water is the clear focus, Senate Bill 762 adds a transparency requirement for electricity use 2025-SIB-0762.
Beginning in 2027, the Michigan Public Service Commission would be required to publish an annual public report showing:
- How much water each data center uses, by service area
- How much electricity each data center consumes, measured in gigawatt-hours
This information would be available online for residents, policymakers, and local officials to review.
However, the bill does not cap energy use, require permits for electricity demand, or prevent utilities from passing grid upgrade costs on to ratepayers. Its role is visibility, not regulation.
Roads and other local infrastructure are not addressed
One thing the bills do not cover is roads, traffic, or transportation infrastructure.
Issues like:
- Heavy truck traffic
- Road wear and tear
- Intersection improvements
- Emergency service impacts
These issues would still be handled at the local level, through zoning decisions, development agreements, or separate legislation.
The bottom line
Taken together, the three bills represent a clear message: Michigan welcomes economic development, but not at the expense of its natural resources or its residents.
If passed, the legislation would:
- Require oversight of massive water withdrawals
- Give the public a voice in high-impact decisions
- Protect households from paying for private water infrastructure
- Expose the true scale of data center water and energy use
For communities uneasy about rapid, unregulated growth, these measures are aimed at rebuilding trust by putting rules, transparency, and accountability in place, particularly when it comes to Michigan’s most valuable shared resource of water.
At the same time, the bills stop short of being a full infrastructure solution. They leave open broader questions about energy grids, roads, and long-term planning, conversations likely to continue as large-scale development moves forward.
The package of bills were introduced on Dec. 18, 2025 by State Senators Rosemary Bayer, Sue Shink and Erika Geiss, with some bipartisan cosponsors. All three bills have been referred to the Senate Committee on Energy and Environment where lawmakers will discuss them, hold hearings, and potentially amend them before putting them up for a vote.
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