The resolution urges a temporary one-year pause on discretionary state-level incentives for data center construction in Michigan. It calls for a comprehensive review of the fiscal, utility, environmental, and local governance impacts associated with the development of data centers, which have been increasing due to recently enacted incentive programs. Concerns have been raised by residents and local governments regarding the transparency and long-term fiscal implications of these incentives, particularly in relation to electricity demand, water use, and infrastructure expansion. The resolution emphasizes the need for local union jobs and prevailing wages in data center construction while ensuring that economic development policies protect taxpayers, ratepayers, and natural resources.
To facilitate this review, the resolution directs various state agencies, including the Michigan Strategic Fund and the Michigan Public Service Commission, to conduct assessments on the economic impact of data center incentives, projected electric load growth, and environmental considerations. It also calls for the House Oversight Subcommittee on Corporate Subsidies and State Investments to examine local government participation and zoning authority related to data center siting. The resolution aims to ensure that the interests of local communities and stakeholders are taken into account, with reports from the relevant agencies expected within twelve months of the resolution's adoption.