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AG Nessel accuses DTE of rushing data center approval
The AI data centers are a contentious issue in many communities due to concerns about their impact on ratepayers and the environment, as seen in other states that already have them.
DETROIT (FOX 2) - Attorney General Dana Nessel is raising concerns about a massive AI data center that could be coming to Saline Township.
The Attorney General is accusing DTE of attempting to fast-track the process to get a special contract approved by the Public Service Commission, with the vote scheduled for Friday.
Big picture view:
The AI data centers are a contentious issue in many communities due to concerns about their impact on ratepayers and the environment, as seen in other states that already have them.
The proposed center would require 1.4 gigawatts of energy, enough to power 1 million homes. The special contract in question involves how DTE will provide that energy, with the company claiming that customers won't see increased bills.
However, Dana Nessel questions how they can fulfill that promise, noting that DTE has indicated the project will cost at least half a billion dollars in infrastructure.
She argues that the details are not being fully disclosed.
"What the public has received, including my office, are contracts that look like this and this. That’s not transparency," said AG Nessel. "Do you think this sets a precedent for the rest of these data centers? Absolutely. That’s the biggest concern we have. If you’re going to allow DTE, Oracle, and OpenAI to do this on this project, how are you going to say no to the next one and the one after that?"
What they're saying:
Tech expert Joe Tavares from Resolute Building Intelligence shared his perspective.
"I think there’s probably going to be a middle ground where everyone can win," said Tavares. "Everyone is using the technologies; we’re using AI, we’re watching Netflix, we’re logging into MyChart to check our healthcare. I think at a certain point we have to admit society requires these things. It’s just a matter of how can we put back into communities versus what we’re pulling out."
DTE released a statement, partially reading:
"The energy contracts submitted to the MPSC to support Oracle’s data center in Saline Township will NOT increase rates for our existing customers. In fact, in its filing, DTE is asking for the MPSC to approve additional terms of service that create safeguards to protect our existing customers."
The statement also mentioned that the data center will absorb all new costs associated with incremental new battery storage projects that protect and promote continued reliable service for all customers.