On September 18, the Michigan House of Representatives voted on two deeply concerning bills designed to provide tax breaks for data centers. However, intense, coordinated lobbying by the Sierra Club and our allies blocked one bill for the second time this session. Together, SB 237 and HB 4906 would have offered significant tax breaks to data centers in Michigan without adequate protections for the environment or ratepayers. Legislative leaders sought to force these bills through without including vital language changes to address serious environmental harm, but there is reason for celebration.
After legislators cast their votes, HB 4906 failed to reach the necessary 56 vote threshold, with 26 Democratic and 13 Republican lawmakers aligning with us to vote down the bill. The failure of HB 4906 is a crucial victory. While SB 237 passed the House, the failure of HB 4906 to pass is more than sufficient to disrupt the tax incentive meant to bring data centers to Michigan.
The concerns raised by Sierra Club and others are not frivolous. Without language that sets responsible, commonsense guardrails for the industry, data centers would do real harm to Michigan. Time and again, there are consistent, negative impacts reported from states that have already gone down this road. The immense cooling necessary to sustain these centers will threaten Michigan’s water resources; the resulting grid strain will require new and restarted dirty power plants, reversing Michiganders’ hard-fought clean energy commitments. Moreover, it won't be data centers shouldering these burdens but everyday Michiganders. They'll be fronting the costs not only with cash when rates inevitably rise but also with impacts to clean air, water and energy resources caused by these data centers.
Even with this laudable victory, more needs to be done. SB 237 will return to the Senate, which will consider the changes made by the House. Legislators can still bring up HB 4906 during the lame-duck session, which starts after the November 5 election. The Michigan Chapter will tirelessly work to halt these policies. Still, if this fight is to remind us of anything, it is that we need to continue to urge our legislators to protect our state’s commitment to real, sustainable clean energy.
Take a moment to thank legislators who had the courage to block HB 4906. Let them know you appreciate their actions and send a message that if this legislation comes up again their constituents will be watching. Click this link to send a message today.