DTE gets approval for data center in Saline Township

Regulators have given the green light to DTE to provide energy for a proposed data center in Saline Township, the source of controversy and ire among residents upset about the plans.

The Michigan Public Service Commission signed off on the utility's request to be the primary provider of electricity to a 1.383 gigawatt facility pushed by tech giants Oracle Corporation, OpenAI, and Related Digital.

Regulators gave the OK during their December meeting on Thursday.

Related

AG Dana Nessel raises concerns on proposed Saline Township AI data center

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 with the Public Service Commission, with the vote scheduled for Friday.

Big picture view:

Data centers have been in the spotlight in Michigan as proposals to build facilities around the state.

One of the biggest proposals is in Washtenaw County, which has drawn scrutiny for being rushed as the utility has sought approval to build the infrastructure to power the building.

The agreement is to power the center for the next 19 years.

What they're saying:

DTE released a statement on the announcement: We appreciate the Michigan Public Service Commission's review and approval of our special contracts for Oracle’s data center project. These contracts protect our customers — including ensuring that there will be no stranded assets — while enabling Michigan's growth.

"DTE Energy has an obligation to serve any customer, including data centers, that come into our electric service territory in southeast Michigan. That’s why we’ve been so focused on making sure our broader customer base is protected with these contracts to ensure they will not subsidize data center rates. We acknowledge there’s a range of viewpoints and emotions about this decision. We remain deeply committed to supporting our customers and the communities we serve by delivering the safe, reliable energy they depend on each day."

The other side:

The approval comes despite thousands of comments being filed with the commission ahead of the meeting, the majority against the proposal.

Under the order, DTE must absorb any costs it cannot recover from the center and if an energy emergency were to occur, the data center's power would be reduced before service to residential customers is interrupted.

Michigan Attorney General Dana Nessel said the development is concerning because many of the restrictions laid out in the latest approval are only bound by the honor system and there is no way of verifying any of the claims made during the meeting.

The Source: Previous reporting and a statement from DTE was cited for this story. 

EnergyWashtenaw County