DETROIT – In a decision that could reshape Michigan’s energy and economic landscape, DTE Energy has agreed to stringent conditions attached to long-term power supply contracts for a planned 1.4-gigawatt hyperscale data center being developed by OpenAI and Oracle on roughly 575 acres of farmland south of Ann Arbor in Saline Township. The approval by the Michigan Public Service Commission (MPSC) clears a major regulatory hurdle for what backers describe as one of the state’s largest tech infrastructure investments.
What Was Approved — and With Conditions
The MPSC approved DTE’s proposal to supply electricity to the sprawling project, including setting terms intended to protect everyday utility customers from shouldering project costs. These conditions require DTE to:
- Absorb financial risk if projected cost savings tied to the data center do not materialize.
- Document how the data center’s energy needs will be served without subsidies from other ratepayers.
- File quarterly and annual reports tracking electricity demand and associated financial dynamics.
- Within 90 days, propose a standard tariff for major power users like hyperscale centers to avoid one-off contract reviews in the future.
- Ensure that, in times of supply constraints, the facility’s load can be curtailed ahead of service interruptions for residential and small commercial customers.
DTE has publicly stated that none of the costs tied to powering the data center will be passed on to its broader base of customers, and that battery storage and other investments tied to the deal could ultimately benefit the grid.
Broad Economic Stakes
Supporters of the project — including business leaders and state officials — have touted its potential economic benefits. They estimate it could generate millions in annual tax revenue and create roughly 450 permanent jobs alongside thousands of construction jobs during the build-out phase. For a state actively seeking to grow its technology sector, these figures are being cast as a strategic win.
Yet the sheer scale of the facility — which would require energy on par with what a large American city consumes — has triggered both local and statewide debate about the future direction of Michigan’s energy grid and land use.
Controversy and Public Response
The approval process was contentious. Opponents — including environmental groups, ratepayer advocates, and the Michigan Attorney General — argued that the commission’s fast-tracked, largely ex parte review did not allow sufficient transparency or public input on how the data center might affect energy costs, reliability, or state clean energy goals. They also raised concerns about the secrecy of portions of the contract and the lack of opportunity for a full contested case hearing.
Environmental advocates, including Earthjustice and the Michigan Environmental Council, have criticized the process as opaque, arguing that agreeing to conditions after approval rather than vetting impacts upfront leaves key issues unresolved and could weaken enforcement of protections. They say the decision punts critical questions about renewable energy commitment and cost impacts into future proceedings without adequate public scrutiny…