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HB 6137

Businesses: other; community benefit agreements; require certain data centers to be subject to. TIE BAR WITH: HB 6135'26, HB 6136'26, HB 6140'26, HB 6141'26, HB 6138'26, HB 6142'26, HB 6139'26

2025-2026 Regular Session Introduced by Joey Andrews and 26 co-sponsors

The bill requires binding community benefit agreements with local governments and utilities before a data center may be approved or begin operations, tying projects to local hiring

bill electronically reproduced 06/25/2026
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Bill Summary · HB 6137

Summary of HB 6137 (Michigan, 2025-2026)

Purpose and intent

HB 6137, introduced June 25, 2026, enacts the “data center community benefit agreement act.” The bill seeks to ensure that large data centers located in Michigan are subject to binding community benefit agreements (CBAs) negotiated with local governments and utility providers. The core aim is to link data center development and operation to community benefits, including workforce, infrastructure, and local investments.

Key provisions

  • Definitions (Sec. 3):

    • “Data center” = facilities in Michigan housing data center equipment for storage/processing.
    • “Local unit of government” = county, township, city, or village.
    • “Community benefit agreement” = binding agreements between the data center owner/operator and local government, utility providers, or other community stakeholders to provide resources for local interests.
    • “Commission” = Michigan Public Service Commission (MPSC).

  • Construction/operation prerequisites (Sec. 5):

    • A data center may not begin construction or operation until:
    • A CBA is approved by the local government (Sec. 2-approval process).
    • A CBA is approved by the MPSC (Sec. 3-approval process).
    • The owner/operator enters into the approved CBAs.

  • Local government approval process (Sec. 5(2)):

    • Owner/operator files an application with the local government for review (form prescribed by the local government).
    • Local government must act within 90 days (approve or deny).
    • Approvals require:
    • Parties to the CBA include the data center owner/operator and the local government or its agency.
    • The CBA benefits public health, safety, welfare, lands, and resources.
    • The CBA meets standards in Sec. 4 (see below).

  • MPSC approval process (Sec. 5(3)):

    • Owner/operator files an application with the MPSC (form prescribed by the MPSC).
    • MPSC must act within 90 days.
    • Approvals require:
    • Parties to the CBA include the data center owner/operator and a utility provider (or its agency/instrumentality).
    • The CBA benefits other ratepayers in the utility’s geographic area.
    • The CBA meets Sec. 4 requirements.

  • CBA content requirements (Sec. 5(4)):

    • The CBA must address at least 50% of the following topics:
    • Local hiring of workers and contractors for the data center.
    • Water usage for the data center.
    • Cost allocation for necessary electrical or water infrastructure upgrades.
    • Funding for community investment and improvement projects.
    • Home energy efficiency improvements.
    • The CBA must be enforceable against each owner/operator of the data center.

  • Effect on approvals and interconnections (Sec. 7, Sec. 9):

    • Local governments may not issue site plans, permits, or other authorizations for a data center unless a CBA has been approved.
    • The MPSC may not approve a utility interconnection for a data center unless a local government CBA is approved.

  • Rulemaking authority (Sec. 11):

    • The MPSC may promulgate rules to implement the act under Michigan’s Administrative Procedures Act.

  • Effective trigger (Enacting section):

    • The act takes effect only if a set of related bills (HB 6135, 6136, 6138, 6139, 6140, 6141, 6142) are enacted into law. This indicates a broader package of measures related to the same policy objective.

Who would be affected

  • Data center owners/operators intending to develop or operate facilities in Michigan.
  • Local units of government (counties, cities, townships, villages) that would review and approve CBAs.
  • Utility providers serving data centers and their customers (ratepayers) who would be affected by CBAs addressing infrastructure upgrades and broader community benefits.
  • Local communities and workers through potential benefits such as local hiring, water use policies, and funding for community projects.

Procedural and timeline aspects

  • CBAs require concurrent approval by both the local government (within 90 days of filing) and the MPSC (within 90 days of filing with the Commission).
  • No data center project may proceed without both approvals and binding CBAs.
  • The act allows the MPSC to issue implementing rules, providing a pathway to detailed administration and enforcement.

Overall, HB 6137 creates a framework to link large data center development with negotiated community benefits, emphasizing local employment, infrastructure considerations, water usage, and community investments, while tying project approvals to the existence and terms of CBAs.

Compiled from official sources — confirm details with the bill’s official record.

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