Overview:
- Michigan Public Service Commission unanimously approves DTE contracts to power Google's 1-gigawatt data center in Van Buren Township with protections including 80% minimum billing demand and 15-year payment guarantee.
- Attorney General Dana Nessel sought stronger contract terms to protect ratepayers from stranded asset risks if the facility uses less power than projected or shuts down early.
- Wayne County Commission overrides the county executive's veto of a tax exemption saving Google more than $125 million for the 282-acre project near I-94.
Michigan’s utility regulator voted unanimously Thursday to grant conditional approval for DTE Energy contracts to power Google’s 1-gigawatt data center project in Van Buren Township.
The Wayne County Commission also voted Thursday to override Wayne County Executive Warren Evans’ veto of a tax exemption for the data center that saves the tech giant more than $125 million, Crain’s Detroit Business reports.
The Google data center contracts are Michigan’s first for a hyperscale data center to be decided by a contested case.
The Michigan Public Service Commission made the contentious decision in December to grant fast-tracked, “ex parte” approval of DTE contracts for Oracle and OpenAI’s 1.4-gigawatt data center in Saline Township.
“The central question in this case has been straightforward: How do we make sure that existing customers are protected?” commission member Katherine Peretick said before the vote.
The MPSC’s order answers that question by ensuring the special contracts for the Google facility cover generation, transmission, distribution, and other costs, Peretick said.
DTE expects data center to go online by December 2027
MPSC staff member Quinlan Sharkey said the primary supply agreement provides for a 20-year contract duration, minimum monthly billing demand of 80% of the contract capacity, and a termination payment that ensures Google LLC will pay for at least 15 years of minimum monthly charges, among other measures intended to protect other utility ratepayers.
The terms approved Thursday require Google to pay for the development of up to 1,600 megawatts of renewable energy and 480 MW of battery energy storage by DTE Electric, according to MPSC.
The data center is expected to begin service in December 2027 and achieve maximum load by December 2028, the regulator said, citing DTE Electric.
DTE spokesperson Ryan Lowry said Google will cover the full cost of powering its data center.
“Michiganders expect DTE to keep the lights on, keep bills as low as possible, and put their interests first. That’s exactly what this agreement does,” he said in a statement, adding that Google will bring new clean energy resources to the grid.
The Van Buren Township Planning Commission could vote on a final site plan for the Google data center as soon as its Oct. 14 meeting, The Detroit News reports.
The project is set to occupy 282 acres north of I-94 between Haggerty Road and I-275.
Contracts hold DTE accountable: Data center critic
Katie Duckworth, staff attorney for the Environmental Law & Policy Center, said the MPSC recognized it must hold DTE accountable for the costs and risks of data center development.
“However, the commission failed to encourage large, financially capable customers such as Google to develop and fund innovative, distributed solutions that can support grid reliability, accommodate load growth, and advance Michigan’s clean-energy objectives,” she said in a statement.
Michigan Attorney General Dana Nessel pushed for stronger contract terms, arguing other customers could be at risk if the data center uses less power than forecast, or shuts down before the 20-year contracts expire.
This concern over stranded assets refers to investments in energy infrastructure built for facilities that fail to materialize or go out of business.
Nessel pressed for a 90% minimum billing demand in an Aug. 3 brief filed with the MPSC. An early contract termination payment should be based on a 100% minimum billing demand multiplied by the remaining months in the 20-year contract, she said.
Editor’s note: This story has been updated with a statement from DTE Energy.
MORE DATA CENTER NEWS
How data centers factor into DTE’s 20-year power plan
DTE Energy’s long-range power plan would more than double the utility’s electric capacity over 20 years, including two natural gas plants that environmental groups say are needed primarily to serve major data centers in Southeast Michigan.
El-Sayed, Rogers face voter opposition to data centers in crucial Senate race
Abdul El-Sayed, Mike Rogers square off in key Senate race in Michigan, where 62% of likely voters oppose data centers.
Data center news: Dingell calls for pause on University of Michigan’s Ypsilanti Township supercomputing project
U.S. Rep. Debbie Dingell calls for pause on the University of Michigan’s planned $1.25-billion computing facility in Ypsilanti Township, citing lack of transparency. Plus: Warren and Dearborn advance data center moratoriums, a poll shows nearly two-thirds of Michigan voters oppose the facilities, and Oracle posts six-figure jobs for its Saline Township project.
