MI — State Policy Updated 2026-07-17

Michigan

Enterprise Data Center 2026 proposed incentive changes Qualified Data Center Sales and Use Tax Exemption Other statewide incentives that can apply to data centers Statewide moratorium / approval-ban proposals Local restrictions and moratoriums Zoning / land use Environmental / resource constraints Utility/system constraints Utility Regulation

Executive snapshot

1) Incentive programs

Enterprise Data Center (EDC) Sales and Use Tax Exemption (data center-specific)

2026 proposed incentive changes (not enacted as of 2026-07-17)

Qualified Data Center Sales and Use Tax Exemption (pre-2024 program, now extended)

  • Program status: PA 181 and PA 207 extended the sales/use tax exemption for qualified data centers to Dec. 31, 2050 and expanded it to include enterprise data centers effective April 17, 2025. Source: Michigan Treasury RAB 2025-18, 2025-12-11.
  • Definition (qualified data center): a facility composed of one or more Michigan buildings, operated to centralize data storage/processing for non-affiliated colocated businesses, with at least 75% of revenue from unaffiliated colocated businesses. Source: Michigan Treasury RAB 2025-18, 2025-12-11.
  • Realized exemption use: Treasury figures reported in July show five to 10 annual submissions covering at least $212 million of tax-free equipment purchases from 2020-2024, eliminating just under $13 million in state revenue. Michigan lacks comparable totals for 2016-2019 and keeps claimant identities confidential. Source: GovTech/MLive, 2026-07-13.

Other statewide incentives that can apply to data centers (not data center-specific)

2) Restrictions and moratoriums

Statewide moratorium / approval-ban proposals (not enacted as of 2026-07-17)

Local restrictions and moratoriums

  • Moratorium wave: an April 28 tally identified 51 Michigan cities and townships with moratoriums covering nearly 1,500 square miles; a June 29 update put the count at at least 52 communities. These were temporary planning pauses, not permanent statewide or local bans. Sources: GovTech/MLive, 2026-04-28, Michigan Public, 2026-06-29.
  • Detroit: City Council approved a March 17, 2026 resolution asking Mayor Mary Sheffield not to issue data center permits for two years while the city studies environmental and economic impacts; the resolution passed 6-2, and the mayor’s office said it would vet the request. Sources: Michigan Public, 2026-03-18, City of Detroit, 2026-03-04.
  • Huron County: commissioners approved a 36-month moratorium on land-use permits for data centers and similar uses on May 27, 2026, after the planning commission recommended more time to develop standards. Source: Huron Daily Tribune, 2026-05-27.
  • Filer Township (Manistee County): the township board approved a one-year data center moratorium on June 2, 2026; officials said there was no active proposal and that the pause would provide time to evaluate ordinances and impacts. Source: Manistee News Advocate, 2026-06-03.
  • Ypsilanti Community Utilities Authority: the YCUA board approved a 12-month moratorium on water and sewer service commitments for hyperscale and mid-size data centers, AI computing facilities, and high-performance computational centers pending environmental and system-capacity studies. Sources: Planet Detroit, 2026-04-22, Bridge Michigan, 2026-06-01.
  • Green Charter Township (Grand Traverse County) adopted a one-year moratorium on new data centers in 2025 while updating zoning rules. Source: MLive, 2025-04-15.
  • Howell Township (Livingston County) adopted a six-month moratorium on new data center applications in November 2025; the then-pending project was exempt, but its developer withdrew the rezoning application in December. Sources: WHMI, 2025-11-21, WHMI, 2025-12-08.
  • Lyndon Township (Washtenaw County) adopted Resolution 26-06 on May 12, temporarily pausing data center permits, licenses, and approvals. Source: Lyndon Township, 2026-05-12.
  • Lyon Township (Oakland County) adopted a 180-day moratorium on new data center applications in May, but the pause does not undo Project Flex’s earlier conditional site-plan approval. Source: Michigan Public, 2026-06-29.
  • Lansing approved a 182-day moratorium on new data center development by a 7-1 vote on July 13, after Deep Green withdrew its downtown proposal in April. Source: Michigan Public/WKAR, 2026-07-15.
  • Lake Township (Huron County) unanimously adopted a six-month data center construction moratorium on July 16 to give officials time to study zoning standards; this municipal pause is separate from Huron County’s 36-month county action. Source: Huron Daily Tribune, 2026-07-17.
  • Wixom kept its March moratorium in force on July 14 by unanimously denying a developer’s waiver request for a proposed facility at 30625 South Wixom Road; the city was concurrently drafting permanent data-center standards. Sources: WHMI, 2026-07-15, City of Wixom, 2026-07-14.

Zoning / land use

  • Local zoning authority: cities, villages, townships, and counties may regulate land use and structures through zoning ordinances. Source: Michigan Zoning Enabling Act, 2006-04-17.
  • Exclusionary zoning limitation: zoning ordinances cannot totally prohibit a land use when a demonstrated need exists, unless no appropriate location exists or the use is unlawful. Source: Michigan Zoning Enabling Act, 2006-04-17.

Environmental / resource constraints

  • Large quantity water withdrawals: withdrawals of at least 100,000 gallons/day require registration and review via the Water Withdrawal Assessment Tool; withdrawals above 2,000,000 gallons/day require a permit. Sources: EGLE large-quantity withdrawal registration, 2026-06-10, EGLE water withdrawal permits, 2026-06-10.
  • Noise and air: data centers are subject to applicable state air permitting and local noise ordinances; no statewide data-center-specific air or noise rule was identified. Source: EGLE Air Permitting, 2026-06-10.
  • Water-service chokepoints became a distinct local policy issue after February 2026. YCUA’s April 22 moratorium cited environmental and capacity studies, and Bridge Michigan reported wastewater-capacity concerns for two hyperscale facilities in the Ypsilanti-area service territory. Sources: Planet Detroit, 2026-04-22, Bridge Michigan, 2026-06-01.
  • July voluntary pledge: Governor Whitmer’s Michigan Affordable and Responsible Growth Action Plan asks companies to pay their full electric and water infrastructure costs, add rather than displace power supply, use low-water/closed-loop cooling or municipal water, support long-term grid planning and flexible operations, disclose impacts, and deliver local jobs and benefits. It is a voluntary executive initiative, not a statute or permit. Anthropic, Google, Microsoft, OpenAI, Oracle, and Verrus signed by July 16. Sources: Governor of Michigan, 2026-07-15, Governor of Michigan, 2026-07-16.

Utility/system constraints (practical restrictions)

  • Consumers Energy data center tariff (U-21859): MPSC approved a special tariff for data centers of 100 MW or more with a 15-year minimum term, 80% billing determinant, ramp-up period, and administrative fees for required studies. Source: MPSC, 2025-11-06.
  • DTE large-load conditions (U-21990): MPSC conditionally approved special contracts for a 1,383 MW data center in Saline Township, including 19-year minimum contract duration, 80% minimum billing demand, and termination payments. Source: MPSC, 2025-12-18.
  • DTE storage and rehearing orders (U-21990): on March 27, 2026, MPSC approved the first 332 MW of data-center-related storage facilities and denied petitions for rehearing/reopening of the Saline Township special-contract order. Source: MPSC, 2026-03-27.
  • Saline judicial appeal (U-21990): on April 17, the Attorney General appealed the MPSC approval to the Michigan Court of Appeals, seeking invalidation or remand for a contested case. The appeal did not itself vacate the Commission’s approval, which remained operative on July 17. Source: Michigan Attorney General, 2026-04-17.
  • DTE/Google contested case (U-22058): the Attorney General’s June 11 testimony argued that DTE’s proposed Google contracts need a 90% rather than 80% minimum monthly charge, stronger exit fees, and separate transmission-cost tracking to prevent cost shifting. The contested case remained pending through July 17. Sources: Michigan Attorney General, 2026-06-11, Open MPSC docket mirror, 2026-07-10.
  • DTE large-load tariff filing (U-22061): DTE proposed a Large Load Provision for customers requesting more than 100 MW at a single site or in aggregate with a site average above 20 MW, with 80% minimum billing demand, administrative fees, termination fees, and collateral requirements. Discovery continued in July and the Commission had issued no final order as of July 17. Sources: MPSC notice in U-22061, 2026-03-27, Open MPSC docket mirror, 2026-07-15.

3) Local governance and community dynamics

  • State defers to local zoning: Michigan does not preempt local data center land-use regulation; local ordinances remain the primary siting tool. Source: Michigan Zoning Enabling Act, 2006-04-17.
  • MPSC role: the MPSC regulates electric utility rates, tariffs, and contracts, but it does not provide statewide data center siting approval or replace local zoning decisions. Sources: MPSC U-21859 press release, 2025-11-06, MPSC U-21990 press release, 2025-12-18, MPSC, 2026-03-27.
  • Community opposition patterns: the dominant issues in 2026 are water/wastewater capacity, electric-rate risk, farmland conversion, noise, local transparency, and nondisclosure agreements. The Van Buren Township/Google, Saline Township/Stargate, Ypsilanti Township/U-M-Los Alamos, Gaines Township/Microsoft, and York Township/Sansone matters all produced opposition or delay after February 2026. Sources: Planet Detroit, 2026-03-17, Planet Detroit, 2026-04-07, WWMT, 2026-04-16, WEMU, 2026-04-30.
  • New June-July local decisions: Allen Park’s Planning Commission voted 7-2 on June 4 to deny Solstice Data Center’s 26 MW preliminary site plan for incomplete information and ordinance/engineering concerns; Vevay Township rejected PA 425 transfer talks for a proposed Mason-area campus on June 10, after which Mason supported annexation of nearly 400 acres; and Detroit began drafting tiered data-center zoning rules with a stated Dec. 31 target for council action. These actions were respectively a planning denial, an intergovernmental-transfer rejection followed by annexation support, and rulemaking—not statewide bans. Sources: Planet Detroit, 2026-06-05, WILX, 2026-06-11, WKAR, 2026-06-16, BridgeDetroit, 2026-07-06.

4) Legislative activity (2024-2026)

Enacted

  • PA 181 of 2024 (SB 237): amended the Use Tax Act to extend the qualified-data-center exemption and add the EDC use-tax exemption. Source: Michigan Public Act 181, 2024-12-30.
  • PA 207 of 2024 (HB 4906): amended the General Sales Tax Act to extend the qualified-data-center exemption and add the parallel EDC sales-tax exemption; it was approved Jan. 17, 2025 and took effect April 17, 2025. Source: Michigan Public Act 207, 2025-01-17.

Introduced / pending (2025-2026)

5) Notable data center projects and operators

  • Saline Township / The Barn / Stargate campus (Washtenaw County): the project moved from a 2025 announcement to financed construction in 2026. Blackstone announced financing for a $16 billion Oracle data center campus on April 24, 2026, and Oracle announced on June 1, 2026 that all campus buildings were actively under construction, with the first of three 550,000-square-foot buildings nearing completion. Sources: Blackstone, 2026-04-24, Oracle, 2026-06-01.
  • Saline Township utility status: MPSC denied rehearing/reopening requests in U-21990 on March 27, 2026 and approved the first 332 MW of data-center-related battery storage projects, which are part of 1,383 MW of customer-funded storage tied to the data center. Source: MPSC, 2026-03-27.
  • Saline Township tax status: on July 15 the township approved a 12-year, 50% Industrial Facilities Tax abatement using a $4.8 billion taxable-value basis derived from the settlement agreement, rather than Oracle’s requested $43 billion project-value basis, and included a clawback for unmet improvements. The action changed local property-tax treatment but not the separate $16 billion financing announcement. Source: Michigan Public, 2026-07-15.
  • Saline state-exemption path: Related Digital said it planned to use the older qualified-data-center exemption while continuing to evaluate the newer EDC program. No EDC certification application had been filed by July 13, so the project’s prospective exemption was not subject to the EDC program’s public MSF application and certification conditions as of this update. Source: GovTech/MLive, 2026-07-13.
  • Van Buren Township / Google / Project Cannoli (Wayne County): Google announced a DTE partnership on March 17, 2026 for a Michigan data center supported by 2.7 GW of new clean grid resources and a $10 million Energy Impact Fund; DTE filed U-22058 the same day for special contracts with Google, and the AG’s April 1 intervention stated the facility’s maximum load is about 1.0 GW, with service beginning in December 2027 and maximum load by December 2028. Sources: Google, 2026-03-17, DTE application in U-22058, 2026-03-17, Michigan Attorney General notice in U-22058, 2026-04-01.
  • Van Buren Township local status: the planning commission granted preliminary site-plan approval for Project Cannoli in February 2026 and preliminary approval for a data-center substation/switching station in May 2026; Planet Detroit reported the project would occupy 282 acres and use roughly 2.0 million to 3.6 million gallons of water per day, citing township FAQ materials. Sources: WEMU, 2026-02-12, Planet Detroit, 2026-05-14.
  • Van Buren Township tax status: on May 19 the township board unanimously approved a 36-month construction exemption and a 12-year, 50% real-property IFT abatement for Google. Agreements also require a $15.4 million township infrastructure-fund payment, at least 51 full-time jobs, and a local employment fair. Source: Belleville-Area Independent, 2026-05-29.
  • Lyon Township / Project Flex (Oakland County): Verrus’s 1.8-million-square-foot, six-building campus retained its conditional 2025 site-plan approval despite Lyon’s May moratorium; a February power-delivery filing described a first 200 MW tranche, while a June policy study characterized ultimate demand as 400-500 MW. Anthropic was identified as the intended end user, and Verrus proposed $10 million in community commitments in July; no public total-investment figure was identified. Sources: Lyon Township filing, 2026-02-13, Public Sector Consultants report, 2026-06-25, The Midwesterner, 2026-07-07.
  • Allen Park / Solstice Data Center (Wayne County): the Planning Commission denied the proposed 26 MW preliminary site plan 7-2 on June 4, citing missing information and compliance, engineering, and noise concerns. This was a project-level planning denial rather than a final statewide or judicial prohibition. Source: Planet Detroit, 2026-06-05.
  • Mason / Vevay Township proposal (Ingham County): Vevay Township unanimously rejected PA 425 land-transfer negotiations on June 10, but Mason supported the owner’s annexation petition on June 15 for nearly 400 acres, so the unidentified-developer proposal remained possible rather than cancelled. Source: WKAR, 2026-06-16.
  • Gaines Township / Microsoft (Kent County): Microsoft continued pursuing a data center campus in 2026. After a March 3 community meeting, the Gaines Township Planning Commission tabled a rezoning decision after an April 15 public hearing with heavy opposition; Microsoft sought rezoning of five parcels totaling nearly 104 acres for data center use. Sources: Microsoft Local, 2026-03-03, WWMT, 2026-04-16.
  • York Township / Sansone-Toyota site (Washtenaw County): a potential data center land deal fell through after Sansone Group withdrew its purchase agreement for more than 400 acres of Toyota-owned land along Platt Road; township officials said they were updating zoning ordinances for data centers. Source: WEMU, 2026-04-30.
  • Ypsilanti Township / University of Michigan-Los Alamos high-performance computing facility: Ypsilanti Township formally opposed the planned $1.25 billion project anywhere in the township on March 31, 2026, and the YCUA water/sewer moratorium could affect the project. Sources: Planet Detroit, 2026-04-07, Ypsilanti Township, 2026-04-16, Planet Detroit, 2026-04-22.
  • Switch (Grand Rapids/Gaines Township): Switch’s Pyramid Campus remains an operating Michigan data center asset; no post-February 2026 operating-status change was identified in the sources reviewed. Source: Switch, 2017-05-01.

Gaps and notes