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HB 5882

Local government: other; requirements for a moratorium imposed by a local unit of government on large-scale data centers or cryptocurrency mining facilities; provide for. Creates new act. TIE BAR WITH: HB 5881'26

2025-2026 Regular Session Introduced by Emily Dievendorf and 2 co-sponsors

Gives local governments a time-limited moratorium process to pause large-scale data centers and crypto mining, require studies, public input, and potential zoning changes before ap

bill electronically reproduced 04/23/2026
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Bill Summary · HB 5882

Summary of HB 5882 (2025-2026) – Michigan

Purpose and intent

HB 5882, titled the “data center planning and responsibility act,” establishes a framework for local governments to impose moratoriums on large-scale data centers and cryptocurrency mining facilities. The bill lays out definitions, procedural requirements, and conditions for moratoriums, as well as permissible activities during and after a moratorium. It aims to give local units of government time to study local impacts and shape zoning ordinances to address potential risks and public welfare concerns.

Key definitions

  • Large-scale data center: A data center that exceeds thresholds for electrical load or infrastructure investment set by the Michigan Public Service Commission (the Commission). The bill directs the Commission to establish these thresholds.
  • Cryptocurrency mining facility: A group of computers in Michigan that consumes more than 1 megawatt of energy to secure a blockchain.
  • Data center: Facility primarily used for data storage, processing, or digital operations.
  • Proposed project: A large-scale data center or cryptocurrency mining facility with pending or potential zoning authorization.
  • Moratorium: A voluntary pause on accepting, reviewing, or approving certain zoning authorizations (e.g., rezoning, site plans, special/conditional land use, variances, etc.).

What the bill would do (procedural framework and substantive provisions)

Scope and eligibility (Sec. 7)

  • Local units of government may impose a moratorium on large-scale data centers or cryptocurrency mining facilities only if:
    • The moratorium is adopted by the governing body at a public meeting.
    • The ordinance/resolution includes:
    • Scope, exemptions, and a process to appeal eligibility based on extraordinary hardship (written, public, on-the-record decision).
    • A prohibition on elected officials entering into nondisclosure agreements related to proposed projects.
    • A justification tying the moratorium to public health, safety, and welfare.
    • Initial moratorium term ≤ 6 months.
    • The local unit has not previously imposed a moratorium on similar projects.

During a moratorium (Sec. 7(2) and Sec. 9)

  • No acceptance, review, or approval of zoning actions for proposed projects during the moratorium.
  • Sec. 9 allows local governments to:
    • Establish task forces or monitoring committees.
    • Require owner/operator to provide impact studies (e.g., fire, power grid, water, economic/fiscal impacts).
    • Solicit public input and consult with experts, the Commission, the Department of Environment, Great Lakes, and Energy (EGLE), or other entities.
    • Collect data and obtain legal opinions.
    • Enter into community benefit agreements to mitigate impacts.
    • Prepare midpoint progress reports and propose zoning amendments (e.g., subjecting projects to more stringent approvals, designating specific zoning districts, imposing conditions).
    • Conduct a final public hearing to present findings and proposed amendments.

Extensions and sunset (Sec. 7(3)-(4))

  • Extensions are allowed only if:
    • Adopted at a public meeting with documentation of compelling circumstances (e.g., need for additional review, pending state or utility decisions, appeals, or zoning amendments).
    • Extension period up to 90 days.
    • No prior extension of a moratorium.

Post-moratorium actions (Sec. 11)

  • After ending a moratorium, local governments may:
    • Require ongoing annual compliance reports and periodic inspections.
    • Reevaluate and amend zoning ordinances based on updated local impact information.

Administration and costs (Sec. 13)

  • Owners/operators may be required to pay for or reimburse the local unit’s costs for studies, consultations, or inspections.
  • Review of pending zoning applications may be suspended until reimbursement is provided.

Public process and transparency (Sec. 15)

  • Public meetings and hearings must comply with open meetings and zoning notice requirements.
  • Public documents must be accessible under the Freedom of Information Act.

Commission responsibilities (Sec. 17)

  • The Commission must establish electrical load or infrastructure thresholds to classify data centers as “large-scale,” considering system-wide utility impacts, need for new infrastructure, tariff categories, and potential cost-shifting to other ratepayers.

Public information portal (Sec. 19)

  • The Department must maintain a website with resources and best planning considerations for large-scale data centers and cryptocurrency mining facilities.

General caveats and constitutional/operational limits (Sec. 21)

  • The act does not override certain constitutional provisions, delay projects already authorized, alter other permitting requirements, affect labor or wage protections, or create a private right of action.

Effective date and cooperation with HB 5881 (Enacting sections)

  • Takes effect 90 days after enactment.
  • Inoperative unless HB 5881 is enacted into law (tied enactment).

Who is affected

  • Local units of government (counties, townships, cities, villages) that might consider moratoriums.
  • Owners/operators of proposed large-scale data centers or cryptocurrency mining facilities.
  • Local residents and communities, via potential impacts on energy use, water resources, traffic, noise, lighting, emissions, property values, and fiscal health.
  • State agencies (Commission, Department of Environment, Great Lakes, and Energy) and utility providers, due to data collection, studies, and potential coordination.

Timeline and process overview

  • Local governments may initiate a moratorium for up to 6 months, with potential one-time extensions up to 90 days each, if justified.
  • During the moratorium, extensive studies, hearings, and public engagement can occur.
  • By end of the moratorium, local governments conduct a final public hearing and may adopt zoning amendments.
  • Post-moratorium, ongoing compliance and reevaluation of ordinances may occur.

Practical considerations

  • The bill creates a structured, procedure-intensive approach to pause and study large-scale data center and cryptocurrency mining projects before they can proceed with rezoning or approvals.
  • It emphasizes public participation, expert analysis, and potential mitigation agreements.
  • It also places financial responsibility for studies on project owners/operators.

Note: This summary reflects the text and provisions as written; it does not assess policy merits or partisan implications.

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

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