MPSC Rejects Attorney General's Challenge to DTE Data Center Power Deal, Approves Contracts for OpenAI Campus

State Regulators Won't Reconsider DTE Energy Agreement for Massive Data Center Campus

LANSING, Mich. — The Michigan Public Service Commission voted 3-0 on March 27 to reject requests from Attorney General Dana Nessel's office and other groups to reconsider a previously approved agreement between DTE Energy and developers for a massive data center campus in Saline Township.

The MPSC's decision denies petitions filed by the Attorney General's office, environmental advocacy groups, and local residents who opposed the facility's construction. The order states that the opposing groups lacked standing to intervene in the case.

What's at Stake

The project, backed by Oracle and Related Digital, aims to provide 1.4 gigawatts of energy for a hyperscale data center campus intended to power OpenAI's "Stargate" initiative for generative artificial intelligence development. To put that in perspective, 1.4 gigawatts of energy could power over a million homes.

The MPSC approved agreements between DTE and the developers in December over objections from Nessel's office, environmental advocacy groups, and local residents. In January, the Attorney General's office filed a petition for rehearing, which commissioners denied during their March 27 meeting.

AG Nessel's Response

Nessel's office did not return a request for comment on March 27 but issued a statement blasting the MPSC decision. "The Michigan Public Service Commission continues to perform a grave disservice to the state of Michigan and the utility customers of this state, to the only apparent benefit of the utility corporations and their new billion-dollar AI customers," Nessel said.

The Attorney General's office argued the MPSC should have opened a contested case for the power agreement where DTE would have had to prove that residential rates would not be affected.

Concerns About Impact

Groups opposed to the data center voiced concerns about the impact on local residential electric rates. Nessel's office argued the MPSC should have opened a contested case for the power agreement where DTE would have had to prove residential rates wouldn't be affected.

Ex Parte Approval Process

The MPSC granted ex parte approval to DTE's agreement, meaning the contracts did not have to go through a contested case where intervening groups could file expert witness testimony and seek evidence through discovery over the course of the proceeding, which typically takes about a year.

MPSC Also Approves Battery Storage

At its March 27 hearing, the MPSC also approved battery storage contracts for six DTE projects — three of which are intended to provide power for the Saline Township campus.

Regulators and DTE officials say the agreement states developers have to foot the bill for all energy costs. Additionally, DTE officials have argued that powering the planned data center could actually lead to lower rates because of excess energy storage being added to the company's portfolio.

Broader Context

The MPSC's decision comes amid growing debate over data center development in Michigan and the state's energy infrastructure. Similar projects are being proposed across the country, with companies including Google announcing their own large-scale data center initiatives.

The commission's 3-0 vote reflects the regulator's confidence in the current approval process while the Attorney General continues to challenge the decision in other forums.

What Happens Next

The MPSC's denial means the data center power agreement proceeds without the contested case process that the Attorney General had sought. The projects move forward with the battery storage contracts also approved at the March 27 hearing.

The Attorney General's office may pursue other avenues to challenge the agreement, though the lack of standing in this particular case limits immediate legal options.