Michigan regulators just greenlit fast-track power contracts for an OpenAI/Oracle-linked data center that will pull 1.4 GW, forcing DTE to boost capacity by about 25 percent.
The commission leaned on long-term contracts with 19-year commitments and 80 percent+ take-or-pay clauses to claim ratepayers won’t eat stranded asset risk if AI demand stalls.
DTE and shareholders are officially on the hook for overrun and default costs, while regulators say the deal yields a roughly $300 million per year net benefit to other customers, largely via data center-funded infrastructure.
Locals and some lawmakers pushed back hard on the ex parte approval, citing lack of transparency, bypassed contested-case review, and serious environmental concerns tied to such a power-hungry facility.
This fight signals how AI data center loads now rival nuclear-scale generation and are forcing regulators to pick between rapid power buildout and deeper community and environmental scrutiny.
Michigan is trying to thread the needle with bans on shifting data center costs to customers and tighter contracts than many other states, but repeal efforts and new regulatory bills show the policy framework is far from settled.
The article is worth reading closely for how one state is operationalizing long-term power contracts and risk allocation around hyperscale AI infrastructure.
Source: Michigan regulators approve Saline Twp data center request with conditions
