Michigan Data Center Review Criticized as a ‘Rush Job,’ AG Dana Nessel States

Michigan’s Public Service Commission (MPSC) is currently reviewing a proposal from DTE Energy to provide power to the state’s first hyperscale data center in Saline Township. DTE Energy seeks quick approval of contracts to supply energy to the 1.4 gigawatt AI data center before the end of the year, bypassing a full public vetting process.

Attorney General Dana Nessel criticized the review process, calling it a “rush job” influenced by “unprecedented political and industry pressure.” She expressed concern that regulators might simply “rubber stamp” the contract without proper scrutiny, raising fears about potential negative impacts on energy bills and the environment.

The proposed hyperscale data center, a $7 billion project backed by Oracle, OpenAI, and Related Digital, is expected to consume power equivalent to that used by one million homes. DTE Energy claims the project must move quickly or risk losing the opportunity to other states, stressing the importance of meeting tight construction timelines.

Several groups, including watchdog and environmental advocates, have petitioned the MPSC to conduct a contested case hearing. This process would allow formal discovery, cross-examination, and a more transparent review of DTE’s contract. Public comments are being collected ahead of a scheduled hearing on December 3, but critics argue this timeline is too short and insufficient for thorough evaluation.

Concerns about the deal extend beyond timing. Ratepayer advocates highlight that DTE’s filing with the MPSC is heavily redacted, making it difficult to assess whether residential customers will be unfairly subsidizing the data center’s infrastructure needs. Additionally, there are worries about environmental impacts, including water use for cooling and the emissions associated with increased power demand.

Michigan law requires data centers to use 90% clean energy and mandates utilities to transition entirely to clean energy by 2040. While DTE asserts it can meet these requirements, it has not provided detailed plans. Environmental groups urge commitments for renewable energy investments to ensure these large facilities align with state climate goals.

The MPSC will meet again on December 5 to decide whether to open a contested case. If the commission declines, opponents may appeal to the Michigan Court of Appeals, signaling ongoing debates over data center development and energy regulation in Michigan.