Michigan State Rep. Reggie Miller Introduces Data Center Bills to Close Tax Loopholes, Require Environmental Disclosure

Michigan State Representative Reggie Miller introduced two bills on April 6, 2026 that directly address concerns about Michigan's data center boom and its impact on communities across West Michigan.

The legislation targets loopholes in the current system that allow data center operators to access tax incentives meant for other purposes while failing to disclose their environmental footprint.

First Bill Closes College Tax Abatement Loopholes

The first bill prevents colleges and universities from accessing local property tax abatements designed for education facilities or economic development projects when building or partnering with data centers.

According to Miller's Chief of Staff Jackson Pahle, this measure stops what he calls double dipping on tax incentives.

"Colleges are still able to build them. This is not a moratorium or a ban or anything, but it's just so that colleges and these data centers aren't double dipping on tax incentives," Pahle said.

The bill would ensure that if a data center is the primary function of a building, it remains on the tax rolls rather than qualifying for education facility exemptions.

Second Bill Requires Environmental Disclosure

The second bill mandates that data centers register with the state and disclose operational impacts including energy consumption and water use.

The legislation would also require financial safeguards for potential environmental risks or decommissioning costs, ensuring that taxpayers are not left bearing cleanup costs when facilities close.

Data Center Boom Raises Local Concerns

Michigan currently hosts 70 operating data centers with more proposals in the pipeline. The state has become a hub for artificial intelligence and cloud computing infrastructure.

Google announced plans for a 1,000 megawatt data center in Van Buren Township, representing one of the largest projects in the state.

Hyperscale Data in Dowagiac announced expansion plans to scale from 30 to 340 megawatts, enough to power 200,000 to 300,000 homes. The company completed its initial milestone in 2027 with expansion finished by 2029.

The Environmental and Energy Study Institute noted that large data centers can consume up to 5 million gallons of water per day, raising concerns about strain on local water resources.

State Attorney General Raises Transparency Concerns

Michigan Attorney General Dana Nessel has raised questions about data center transparency during public town halls. Nessel said the process of building data centers is flawed and not well monitored, with companies operating on an honor system.

The Howell town hall on March 31, 2026 featured panelist Charlotte Jameson from the Michigan Environmental Council, who noted impacts on energy use, climate, water use, land use, and community concerns.

Bills Head to Legislature Next Week

The Michigan State House is scheduled to return the following week to consider the data center bills. Miller represents Van Buren Township in the House, where he has been serving since 2023 after winning re-election with 50.64 percent of the vote in 2024.

The legislation represents a shift from the current approach of rapid approval and generous tax breaks to a model that requires greater oversight and environmental accountability.