{"id":357250,"date":"2025-12-19T03:07:10","date_gmt":"2025-12-19T03:07:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/357250\/"},"modified":"2025-12-19T03:07:10","modified_gmt":"2025-12-19T03:07:10","slug":"michigan-regulators-approve-dte-energy-plan-for-massive-data-center","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/357250\/","title":{"rendered":"Michigan regulators approve DTE Energy plan for massive data center"},"content":{"rendered":"

LANSING \u2014 Michigan utility regulators signed off on DTE Energy\u2019s agreement to power a\u00a0hyperscale data center planned for Saline Township<\/a>, despite\u00a0at-times heated opposition\u00a0calling for greater scrutiny of the project<\/a>\u00a0and the electric company\u2019s plan to provide the massive amount of energy needed for it without straining the state\u2019s electric grid\u00a0or raising rates for customers.\u00a0\u00a0<\/p>\n

The Michigan Public Service Commission voted\u00a03-0 on Thursday, Dec. 18\u00a0to approve\u00a0DTE\u2019s \u201cex\u00a0parte\u201d motion\u00a0formalizing\u00a0its contract\u00a0to provide\u00a0an initial\u00a01.4 gigawatts of computing power, or the amount of energy the planned data center\u00a0will pull from the grid,\u00a0with the\u00a0backers of the Saline Township project.\u00a0Developer\u00a0Related Digital,\u00a0software company Oracle<\/a>\u00a0and generative artificial intelligence company OpenAI are behind the data center, which is part of OpenAI\u2019s \u201cStargate\u201d project to power AI development. OpenAI runs the ChatGPT program, which has become synonymous with generative AI globally.\u00a0<\/p>\n

Developers announced the\u00a0multibillion-dollar\u00a0project in October\u00a0after Related Digital settled a lawsuit with the Saline Township board, which initially denied rezoning\u00a0a parcel of farmland for the data center. The planned campus will consist of three single-story buildings, each\u00a0550,000 square feet, on a 250-acre site north of U.S.-12. Construction\u00a0is slated to\u00a0begin early next year.\u00a0<\/p>\n

In public statements and regulatory filings, the Detroit-based utility argued a contested case was not needed because its agreement to supply energy for the planned campus\u00a0wouldn\u2019t\u00a0lead to higher residential energy costs or place a strain on current energy demands. The company has pointed to a\u00a02024 state law<\/a>\u00a0that bars data center developments from passing energy costs onto residents in order to qualify for tax breaks.\u00a0<\/p>\n

By granting DTE\u2019s ex\u00a0parte\u00a0request, commissioners approved the contract without a contested case process where intervening groups could file expert witness testimony and seek evidence through discovery over the course of the\u00a0proceeding,\u00a0which\u00a0typically takes about a\u00a0year.<\/p>\n

When Commissioner Katherine\u00a0Peretick\u00a0moved to approve the ex\u00a0parte\u00a0motion, several members of the crowd expressed dismay at the decision, shouting at commissioners to let them make public comments before the vote.\u00a0\u00a0\u00a0<\/p>\n

\u201cI\u2019m\u00a0not going to allow you to disrupt this meeting,\u201d\u00a0MPSC Chair Dan\u00a0Scripps\u00a0said. Scripps later said he understood the frustration from members of the public, although some in attendance continued to shout during his remarks.\u00a0At one point, Scripps asked a woman to leave the meeting after she continued to deride the data center contract.\u00a0\u00a0<\/p>\n

Green Chile Ventures, an Oracle subsidiary, is covering energy costs for the Stargate facility, under the contract approved Dec. 18, regulators said.\u00a0Peretick\u00a0said the order also calls for DTE to bear responsibility to cover costs in the event developers cannot.\u00a0\u00a0<\/p>\n

Several\u00a0environmental groups, a coalition of major businesses in Michigan<\/a>\u00a0and Attorney General Dana\u00a0Nessel’s\u00a0Office\u00a0had\u00a0all argued\u00a0against the motion<\/a>,\u00a0asserting\u00a0DTE should have to prove its claims about the data center\u2019s potential impact on the electric grid and current residential rates.\u00a0\u00a0<\/p>\n

Ultimately, commissioners\u00a0sided with DTE.\u00a0Scripps said after review by the MPSC staff, the commission judged the power supply agreement between DTE and developers was in the public interest.\u00a0<\/p>\n

\u201cWhile I recognize the concerns about the process in this case, the reality\u00a0is\u00a0the commission used\u00a0a very similar\u00a0process in\u00a0a number of\u00a0cases in recent years,\u201d he said, of the ex\u00a0parte\u00a0proceedings.\u00a0\u00a0<\/p>\n

After the vote, commenters said they felt misrepresented by the commission and the process in which the power agreement was approved.\u00a0<\/p>\n

\u201cI, along with everyone here …\u00a0probably don\u2019t\u00a0feel like\u00a0they\u2019ve\u00a0been\u00a0publicly\u00a0served today,\u201d said Wendy Albers, of Augusta Township. \u201cWhen you make these decisions,\u00a0you\u2019re\u00a0eliminating\u00a0the very necessity of what public service bodies are all about.\u201d\u00a0<\/p>\n

\u201cI appreciate the protections you put in place, but I just\u00a0don\u2019t\u00a0trust them,\u201d Albers added.\u00a0<\/p>\n

Another commenter who said she lived a few hundred yards from the planned Stargate site said the MPSC let down the public with its vote.\u00a0\u00a0<\/p>\n

\u201cI know you look at the facts, but this is affecting real people,\u201d said Kathryn Haushalter. \u201cI\u00a0wonder\u00a0in five years, would you come over to my house and get a drink of water?\u201d\u00a0<\/p>\n

\u201cWhat you did is\u00a0hurting\u00a0real families. You can say and justify it however you want, but I want you to remember my\u00a0kids, and\u00a0remember me.\u00a0You\u2019re hurting\u00a0us. You do not serve me.\u201d\u00a0<\/p>\n

DTE officials commended the MPSC vote. Ryan Lowry, a DTE spokesperson, said in a statement the company remains committed to protecting its residential ratepayers.\u00a0<\/p>\n

“We\u00a0acknowledge\u00a0there\u2019s\u00a0a range of viewpoints and emotions about this decision. We\u00a0remain\u00a0deeply committed to supporting our customers and\u00a0the\u00a0communities\u00a0we serve\u00a0by delivering the safe, reliable energy they depend on each day,” Lowry said.<\/p>\n

A Related Digital representative\u00a0also lauded the MPSC vote.\u00a0<\/p>\n

\u201cMichigan is truly leading the way in terms of creating a framework for responsible digital infrastructure development, and we are pleased this important project meets that test by being developed with respect for Michigan\u2019s water and natural resources while providing substantial long-term economic benefits,\u201d\u00a0spokesperson Natalie Ravitz said in a statement.\u00a0<\/p>\n

One\u00a0provision in the\u00a0contracts between DTE and the data center developers calls for\u00a0a minimum billing demand of 80%\u00a0of the contracted energy capacity. Through this provision, DTE will charge developers for the costs of a minimum of 80%\u00a0of the energy\u00a0it has\u00a0agreed to provide,\u00a0regardless of\u00a0whether the data center uses it. This is sometimes referred to as a \u201cready to serve\u201d\u00a0stipulation.\u00a0An MPSC order in a case with Michigan\u2019s other large utility, Consumers Energy,\u00a0established the provision earlier this year<\/a>. \u00a0\u00a0<\/p>\n

The\u00a0minimum\u00a0contract duration for the power agreement between DTE and Green Chile Ventures is for 19 years.\u00a0<\/p>\n

Supporters of the data center in Saline Township have pointed to job creation and a boost in the local tax base\u00a0as benefits the facility would provide. When the project was announced in October, developers said it would create 2,500 union construction jobs and 450 on-site jobs once the facility is built.\u00a0At a Dec. 3 public comment hearing, several labor union representatives and area chamber of commerce representatives\u00a0voiced support for the data center campus.\u00a0<\/p>\n

Gov. Gretchen Whitmer is also\u00a0a supporter of the Saline Township facility, calling it a\u00a0vital\u00a0component\u00a0of Michigan\u2019s economic transition<\/a>\u00a0and a key asset in the national effort to remain globally competitive\u00a0for similar projects.\u00a0<\/p>\n

But opponents of the Stargate plans, and hyperscale data centers in general, say\u00a0they\u2019re\u00a0not worth the environmental and energy concerns.\u00a0\u00a0<\/p>\n

Because generative AI, like what the Stargate project is intended to support, takes a lot of energy to\u00a0power,\u00a0hyperscale\u00a0data centers pull significant amounts of electricity from the grid. The\u00a0initial\u00a01.4 gigawatts of energy planned for the Saline Township\u00a0campus\u00a0is more energy than DTE produces at its Fermi 2 nuclear power plant in Newport.\u00a0And there are plans for a potential further 3 gigawatts of computing power at the campus, according to regulatory filings.\u00a0\u00a0<\/p>\n

In many large data centers, a great amount of water\u00a0is\u00a0needed to cool the air that gets heated by constantly running servers and other computer equipment. Developers behind the Stargate proposal say the facility will use a closed-loop water system and\u00a0won’t\u00a0tap into the Great Lakes, although skeptics say closed-loop water systems\u00a0are\u00a0less energy efficient<\/a>\u00a0than direct water cooling or liquid emersion cooling systems.\u00a0<\/p>\n

There are also those wary of the increased demand on Michigan\u2019s energy grid\u00a0presented by large\u00a0data\u00a0centers, and how greater power needs could\u00a0slow the state\u2019s clean energy transition.\u00a0Under state law approved\u00a0in 2023<\/a>,\u00a0100% of its energy\u00a0needs to be generated\u00a0from sources defined as \u201cclean\u201d by 2040. But that law does allow energy providers to\u00a0seek\u00a0\u201cgood cause exemptions\u201d if\u00a0they\u00a0don\u2019t\u00a0believe they can meet energy demands through\u00a0clean sources. This, proponents argue, opens the door for continued reliance on fossil fuels like coal-fired plants to meet energy demand.\u00a0\u00a0<\/p>\n

As part of the order approved Dec. 18, DTE must inform the MPSC in a yearly\u00a0report\u00a0how the data center\u2019s operation affects its overall energy portfolio.\u00a0\u00a0<\/p>\n

There are also concerns about job forecasts at large data center developments, since the facilities serve more of an infrastructural purpose than a typical business once built.<\/p>\n

New data centers are being planned around Michigan.\u00a0In some cases, like in Saline Township or a\u00a0recently approved project in Southfield<\/a>, developers are able to overcome local opposition, but in others,\u00a0public opinion has played a major role in defeating projects.\u00a0Developers\u00a0pulled plans for a hyperscale data center in Howell Township<\/a>\u00a0in December after residents voiced opposition. In Kalkaska, near Traverse City, developers similarly abandoned plans for a data center, with\u00a0the president of the company hoping to build the data center\u00a0directly crediting local opposition to the project<\/a>.\u00a0<\/p>\n

The MPSC is a three-member body tasked with overseeing utility companies in Michigan. The governor is tasked with appointing all three members, although state law mandates that no more than two commissioners are from the same political party. Whitmer appointed all three current commissioners.\u00a0\u00a0<\/p>\n

You can reach Arpan at alobo@freepress.com.<\/p>\n","protected":false},"excerpt":{"rendered":"LANSING \u2014 Michigan utility regulators signed off on DTE Energy\u2019s agreement to power a\u00a0hyperscale data center planned for…\n","protected":false},"author":2,"featured_media":357251,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[27729,181,28,122,3195,19868,3426,10691,12514,22189,25226,89674,16358,1872,22188,2420,35199,3729,983,8373,1303,141232,34645,177034,3,1283,13470,34647,3238,10822,74,10353,13692,7622],"class_list":["post-357250","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-artificial","tag-artificial-intelligence","tag-business","tag-business-news","tag-chatgpt","tag-commission","tag-company","tag-company-news","tag-construction","tag-construction-u0026-maintenance","tag-dana","tag-dana-nessel","tag-electricity","tag-energy","tag-energy-u0026-utilities","tag-government","tag-intelligence","tag-local","tag-local-news","tag-maintenance","tag-michigan","tag-michigan-public-service-commission","tag-negative","tag-nessel","tag-news","tag-openai","tag-overall","tag-overall-negative","tag-public","tag-service","tag-technology","tag-technology-news","tag-u0026","tag-utilities"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/357250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=357250"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/357250\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/357251"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=357250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=357250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=357250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}