Michigan just greenlit fast-tracked power contracts for a massive OpenAI/Oracle-backed data center near Ann Arbor, skipping a full contested case because regulators say it won’t raise rates for other customers.
The site will need over a gigawatt of power and force DTE Electric to expand capacity by about 25 percent, which is a huge AI-era load equivalent to more than a typical nuclear reactor.
Regulators say the contracts lock the project into billions in obligations and include protections if the AI demand bubble pops and the expected load never materializes.
DTE and the hyperscalers are on the hook for the infrastructure build-out, and the commission claims other customers will see roughly $300 million per year in net benefits.
Locals and opponents are not convinced, pressing on who enforces accountability, environmental impacts, and whether ratepayers really avoid stranded asset risk if this data center bet goes sideways.
The commission relied on non-public, unredacted contracts to justify approval, which only heightens trust questions but also signals how sensitive these AI power deals have become.
This piece is worth a read as an example of how state regulators, utilities, and AI vendors are cutting unprecedented power deals under intense local and political scrutiny.
Source: Michigan Public Service Commission OKs data center power request | WEMU-FM
