The proposed bill establishes a framework for local units of government in Michigan to create data center overlay districts, which are designated zoning areas specifically for data centers. It defines key terms such as "data center," "data center overlay district," and "local impact," outlining the responsibilities of local governing bodies in establishing these districts. The bill mandates that local governments must consider the potential local impacts of data centers, including effects on public health, safety, and welfare, before creating or modifying these districts. Additionally, it allows local governments to impose specific conditions and requirements for zoning authorizations related to data centers.

To ensure transparency and public involvement, the bill requires local governments to conduct public meetings and hearings in compliance with existing open meetings laws and to provide public notice as stipulated by the Michigan zoning enabling act. It also emphasizes the importance of making relevant documents accessible to the public under the freedom of information act. The act is designed to supplement existing zoning authority without limiting it, and it will take effect 90 days after being enacted into law.