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Newsletter: Data center generation, VPP bills, and more

Welcome to the weekly newsletter of the Michigan Energy Innovation Business Council (Michigan EIBC), the business voice for advanced energy in Michigan. Here’s what’s new this week:

Michigan EIBC Submits Comments on Data Center Generation

Related Digital’s rendering of a proposed data center in Saline Township, MI. (Source: Related Digital)

As part of a 2024 law inviting data center business with a sales and use tax exemption, Michigan mandated that any data center pursuing the tax break must be powered by 90% clean energy. The Michigan Strategic Fund, which reviews tax exemption eligibility, recently issued new guidelines allowing data centers to qualify even if they do not demonstrate that they can meet the 90% requirement as long as they sign a long-term contract with a regulated utility that is on track to meet Michigan’s climate goals. Organizations including Michigan EIBC, along with Advanced Energy United, are challenging the new guidelines, arguing that it rewrites the original intent and timeline of the law since utilities are not required to reach 100% clean energy until 2040.

The Michigan Strategic Fund Board sought public comments on the issue prior to its Dec. 9 meeting. Michigan EIBC and Advanced Energy United submitted comments urging the Board to stand by the original law and require data centers to demonstrate they can be powered by 90% clean energy. As we wrote in our comments, the Board’s current guidelines “wipes out the 90% requirement explicitly stated in the relevant tax provisions for at least the next fifteen years, without any clear authority to do so.” Unfortunately, the Board did not ultimately take up the issue during the recent meeting.


Virtual Power Plant Legislation Introduced

State Senators Sue Shink and Jeff Irwin introduced a bill package this week enabling virtual power plants (VPPs) in Michigan. Senate bills 731 and 732would direct the Michigan Public Service Commission to create regulations requiring utilities to include VPPs in their planning and set guidelines for compensation programs. 

“Virtual power plants can prevent price spikes and power outages, especially as extreme weather and data centers put more strain on our electrical grid,” said Justin Carpenter, Policy Director for the Michigan Energy Innovation Business Council, in support of the bills. “We can’t afford not to use existing resources to their fullest potential to ensure our communities benefit from lower costs, greater reliability, and a more resilient energy future.”


IEI Hosts Geothermal Tour of the State Capitol

The Institute for Energy Innovation and Advanced Energy United hosted a tour for legislators and staff of the Michigan State Capitol’s geothermal system, along with an overview of geothermal heating and cooling systems. Thank you to all those who joined!


New Members

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Michigan Energy News

  • An Ottawa County solar farm is garnering local pushback as residents say it will cover prime farmland. (MLive)
  • DTE Energy told investors it expects the Michigan Public Service Commission to approve its contract with a Saline Township data center on Dec. 18. (Planet Detroit)
  • Michigan EIBC member LG Energy Solution has agreed to supply Mercedes-Benz with EV batteries in a $1.4 billion deal. (BusinessKorea)

National Energy News

  • The solar power industry is asking Congress to overrule a Department of Interior policy that requires the Interior Secretary to sign off on almost all aspects of a solar or wind project application. (E&E)
  • Americans lost an average of 11 hours of power from outages in 2024, more than any other year in the past decade. (Utility Dive)
  • A new report finds that home electrification can free up capacity for data center growth while creating hundreds of thousands of energy efficiency jobs. (Rewiring America)
  • A federal judge ruled President Trump’s executive order blocking wind energy projects “arbitrary and capricious,” striking the order down. (AP)
  • Key Senate Democrats signal they will block the permitting reform bill, SPEED ACT, if clean energy projects are not included. (Heatmap)

Events

OPEN TO EVERYONE
  • Jan. 15: Detroit Auto Show Media and Industry Days Panel — Michigan EIBC Policy Principal Sophia Schuster is moderating a panel on improving multi-stakeholder communication to enable EV adoption. Join us! Get tickets here.
  • Feb. 13: University of Michigan Green Career Fair — If you are hiring full-time positions or internships in 2026, this is a great way to meet and identify early talent pipelines among some of the best and brightest in Michigan! For questions, contact Sydni Miller (sydnim@umich.edu) in the UM-SEAS Career Services office. Register
MICHIGAN EIBC MEMBERS ONLY
  • Jan. 14-15: Detroit Auto Show Media and Industry Days — Michigan EIBC members will be able to take advantage of several members-only benefits, including the opportunity to register for a display on the show floor during the show’s Media & Industry Days (January 14-15) at a discount of more than 50%. Email sophia@mieibc.org to learn more.

Jobs

Send job postings to Kaei Li at kaei@mieibc.org to be featured on the newsletter. Please include a specific end date for the job posting. 

Opportunities

Resources