Michigan regulators on Thursday adopted landmark standards for the booming data center industry with a plan they say tries to protect residents from subsidizing the industry’s hefty energy use.

In a 3-0 vote, the Michigan Public Service Commission adopted a rate structure that requires data centers and other energy-intensive industries in Consumers Energy’s territory to sign long-term power contracts with steep penalties for exiting early.

The order also requires Consumers to show that data centers will shoulder all costs to build transmission lines, substations and other infrastructure before adding them to the grid.

Commission Chair Dan Scripps called it a “balanced approach” that shows Michigan is “open for business from data centers and other large load customers, while also leverag

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