Michigan’s Attorney General Dana Nessel and other utility watchdogs are challenging state energy regulators over DTE Energy’s proposal to fast-track a massive power contract for Michigan’s first hyperscale data center. DTE is seeking swift approval before the end of the year, with limited public vetting, for a plan to supply the energy equivalent of one million homes to the new facility.
During a press conference, Nessel criticized what she described as “unprecedented political and industry pressure” to approve the contract for a proposed $7 billion artificial intelligence data center in Saline Township. She expressed concern that regulators would “rubber stamp” the deal without sufficient review.
“This does appear to be a rush job,” Nessel stated. “It does appear as though the intention of the Public Service Commission is to rubber stamp whatever DTE wants, because I have no other explanation as to why they would not have a contested hearing.”
The project, a joint venture by Oracle, OpenAI, and Related Digital, would create a 1.4-gigawatt facility on farmland south of Ann Arbor. In response to DTE’s request for expedited approval, the Michigan Public Service Commission (MPSC) has scheduled a public hearing for December 3 but has not yet committed to a more rigorous review.
Nessel and other advocates, including state Rep. Morgan Foreman, argue a public hearing is insufficient. They have petitioned the MPSC for a formal “contested case,” a legal process overseen by an administrative judge that allows for discovery, cross-examinations, and formal testimony.
“This is a precedent-setting decision for the future of data centers and AI development in Michigan,” said Foreman. “If we allow one utility to bypass public engagement, we’ve opened the door for it to happen again and again.”
DTE officials maintain that the timeline is critical, warning that project developers may choose a site in another state if the contract is not approved quickly. The project, which Governor Gretchen Whitmer has called “the largest economic project in Michigan history,” promises hundreds of jobs and millions in tax revenue.
However, critics fear the deal could lead to higher energy bills for DTE’s 2.2 million customers, citing the utility’s history of high rates and frequent outages. While state law requires data centers to fund the necessary system upgrades to prevent subsidization by residential ratepayers, advocates say DTE’s heavily redacted filing with the MPSC makes it impossible to verify its claims.
“It’s hard to know what’s missing in the contract when we can’t actually see it,” said Amy Bandyk, executive director of the Citizens Utility Board.
This controversy reflects a broader trend in Michigan, where at least ten communities are considering data center proposals, often negotiated in secret. These energy-intensive facilities raise significant environmental concerns regarding land, water, and power consumption. The immense demand could strain the grid, potentially delaying the retirement of fossil fuel plants and undermining the state’s goal of transitioning to 100% clean energy by 2040.
Environmental groups are pushing for a clear commitment from the developers to fund renewable energy sources to power their operations. “If they want to be good corporate citizens in Michigan, they need to be part of helping us meet our climate goals,” said Charlotte Jameson, chief policy officer for the Michigan Environmental Council.
The MPSC is scheduled to meet on December 5. If commissioners deny the request for a contested case, the decision could be challenged in the Michigan Court of Appeals.
Source link
