Michigan Approves 1,332 MW Battery Storage Projects, Including $16B Oracle Data Center Power

The Battery Boom Continues in Michigan as MPSC Approves Six Major Energy Storage Contracts

The Michigan Public Service Commission has moved to significantly expand the state's battery energy storage capacity, approving six projects totaling 1,332 megawatts (MW) — a move that could reshape how Michigan's electrical grid handles peak demand and supports growing data center development.

The approvals, announced on April 2, 2026, come in two separate cases and bring DTE Electric's total storage capacity to 2,606 MW, making it one of the largest utility battery portfolios in the country.

The Six Approved Projects

The approved contracts include:

• 450 MW Big Mitten Energy Center in Huron County
• 350 MW Monroe I Energy Center in Monroe County
• 200 MW Fermi Energy Center
• 132 MW Fish Creek Energy Center
• 100 MW Cold Creek Energy Center
• 100 MW Pine River Energy Center

The first three projects — totaling 1,000 MW — will fulfill commitments in DTE Electric's most recent integrated resource plan (IRP), which was approved in a 2023 settlement agreement. The IRP identified at least 850 MW of energy storage as necessary to meet the utility's electric capacity requirements.

Data Center Development Drives Part of the Growth

The last three contracts are particularly significant as they support the massive 1,383 MW data center being developed by Green Chile Ventures LLC in Saline Township, Washtenaw County. Green Chile Ventures is a wholly-owned subsidiary of Oracle Corporation.

The Commission approved DTE Electric's application for the data center on December 18, 2025, imposing what industry sources describe as "mandatory safeguards to prevent residential and other customers from subsidizing its costs."

DTE Electric requested approval of the Cold Creek, Fish Creek, and Pine River energy centers, along with equipment supply agreements for battery modules and master service agreements for engineering, procurement, and construction (EPC).

The data center battery storage projects represent the first 332 MW of 1,383 MW of company-owned energy storage facilities that Green Chile Ventures must develop to meet the data center's contracted demand. Notably, the total capacity of these approved battery storage projects exceeds the capacity of DTE Electric's 1,150 MW Blue Water Energy Center, the most recent natural gas-fired power plant built in Michigan, which the MPSC approved in 2018.

Cost-Sharing Arrangements

Under the terms of the data center approval, Green Chile Ventures will bear the costs over a 15-year period to develop the energy storage for the project. DTE Electric will develop, own, and operate the facilities to benefit its grid, while Green Chile will receive the value of any market revenues from operating the facilities in the wholesale market.

This arrangement reflects a broader pattern in which major technology companies — including Amazon, Google, Meta, Microsoft, OpenAI, and xAI — have committed to developing, deploying, or purchasing new generation resources for their data centers. These companies signed the White House's Ratepayer Protection Pledge, committing to cover all costs for upgrading power delivery infrastructure at their data centers.

Grid Reliability Benefits

The MPSC emphasized that battery energy storage provides multiple benefits to the grid. Energy storage systems store excess electricity created when it's cheaper to produce and use the stored energy during peak demand periods. This helps ensure grid resilience and can speed the transition to cleaner sources of electricity.

Energy from renewable sources paired with energy storage is significantly cheaper than energy produced from coal or natural gas, potentially reducing costs for customers. The MPSC noted that battery energy storage helps keep the grid stable by supplying electricity during peak demand.

Commission Denies Petitions for Rehearing

In related actions, the Commission denied petitions for rehearing and motions to reopen proceedings on its approval of special contracts for DTE Electric to provide electric service for the 1,383 MW data center in Saline Township.

The Commission found that the Attorney General and others petitioning for rehearing lacked standing to petition for rehearing under the Commission's rules. Additionally, they failed to identify errors, newly discovered evidence, facts or circumstances arising after the hearing, or unintended consequences from the Commission's order — all requirements necessary to justify rehearing.

The Commission similarly denied motions to reopen the case filed by the Attorney General and environmental groups including the Michigan Environmental Council, Natural Resources Defense Council, Sierra Club, and Citizens Utility Board of Michigan.

The Commission noted that its initial approval of the data center included "the nation's strongest protections to prevent other customers from having to pay the data center's cost." These protections include the utility agreeing to be responsible for costs it is unable to recover from Green Chile Ventures.

Additional protections include:

• A minimum contract duration of 19 years
• A minimum billing demand of 80%, requiring the data center to pay a minimum of 80% of its contracted electric use even if actual use is lower
• A termination payment of up to 10 years' worth of minimum billing demand if the facility stops operating before its contracted date

The Commission also denied the Attorney General's request for a contested proceeding on DTE Electric's application for approval of battery contracts related to the data center, finding that the contracts met the requirements for ex parte consideration.

Broader Context

These two sets of storage project approvals bring DTE Electric's total storage capacity to 2,606 MW, among the largest utility energy storage portfolios in the country. Grid-scale batteries have become a major new source of U.S. power capacity, helping keep the grid stable and lowering costs by supplying electricity during peak demand.

However, the rapid growth of battery installations may pause in 2026. Analysts project a dip in installations after a record 2025, largely because tariffs and policy uncertainty delayed or disrupted projects. This slowdown could raise consumer costs by forcing utilities to rely more on expensive "peaker" plants and by postponing savings from avoiding or deferring grid upgrades.

Looking Ahead

The approvals move DTE Electric forward in meeting terms of the utility's most recent integrated resource plan, which called for adding 15,000 MW of solar and wind energy generation in Michigan. The approved contracts include a 20-year tolling agreement with the Big Mitten Energy Center in Huron County and self-build contracts for the Fermi Energy Center Project and the Monroe I Energy Center Project in Monroe County.

As Michigan continues to attract major data center development — including the Oracle-OpenAI $16B AI data center in Saline Township — the state's energy infrastructure will face ongoing demands. The MPSC's approach of approving battery storage projects while maintaining strong protections for ratepayers reflects a balancing act between accommodating economic development and ensuring that ordinary Michigan residents don't bear the costs of powering growing technology infrastructure.