Michigan Attorney General Dana Nessel is urging state regulators to reconsider their approval of special power contracts for a massive data center in Washtenaw County, citing risks to ratepayers and lack of public scrutiny.
Nessel's office filed a petition for rehearing with the Michigan Public Service Commission over its December decision to conditionally approve two special contracts sought by DTE Energy to serve the proposed 1.4-gigawatt hyperscale artificial intelligence data center in Saline Township. The project is expected to consume as much electricity as nearly one million homes, sparking concerns among residents, environmental advocates, and consumer watchdogs about long-term impacts on electric rates, grid reliability, and the environment.
Nessel's move pits her against Governor Gretchen Whitmer, a fellow Democrat who has publicly backed the data center as "the largest economic project in Michigan history." However, Nessel argues that the fast-tracked decision was irresponsible and cut corners, shutting out the public and their advocates.
The commission's order recognizes DTE's legal obligation to serve the data center while imposing conditions aimed at protecting ratepayers. However, Nessel questions whether these conditions are meaningful or enforceable, particularly given that large portions of the contracts remain heavily redacted, preventing outside parties from verifying DTE's claims about serving the data center without raising rates for existing customers.
Nessel is seeking clarification on how the conditions will protect ratepayers and objects to allowing DTE to serve as the project's financial backstop. She argues that this arrangement may expose consumers to higher costs, undermining the commission's authority to ensure they are adequately protected.
The controversy surrounding the data center has sparked a broader debate about Michigan's approach to fast-tracking energy-hungry data center projects tied to the AI boom. With at least 15 data center projects proposed across the state in the past year, Nessel's office is reviewing all potential options to defend energy customers and demanding further clarity on what protections have been put in place.
As the situation unfolds, it remains unclear whether the Michigan Public Service Commission will grant Nessel's request for a rehearing or stick with its original decision. However, one thing is certain: the fate of ratepayers and the environment hangs in the balance as the state grapples with the implications of this massive data center project.
Nessel's office filed a petition for rehearing with the Michigan Public Service Commission over its December decision to conditionally approve two special contracts sought by DTE Energy to serve the proposed 1.4-gigawatt hyperscale artificial intelligence data center in Saline Township. The project is expected to consume as much electricity as nearly one million homes, sparking concerns among residents, environmental advocates, and consumer watchdogs about long-term impacts on electric rates, grid reliability, and the environment.
Nessel's move pits her against Governor Gretchen Whitmer, a fellow Democrat who has publicly backed the data center as "the largest economic project in Michigan history." However, Nessel argues that the fast-tracked decision was irresponsible and cut corners, shutting out the public and their advocates.
The commission's order recognizes DTE's legal obligation to serve the data center while imposing conditions aimed at protecting ratepayers. However, Nessel questions whether these conditions are meaningful or enforceable, particularly given that large portions of the contracts remain heavily redacted, preventing outside parties from verifying DTE's claims about serving the data center without raising rates for existing customers.
Nessel is seeking clarification on how the conditions will protect ratepayers and objects to allowing DTE to serve as the project's financial backstop. She argues that this arrangement may expose consumers to higher costs, undermining the commission's authority to ensure they are adequately protected.
The controversy surrounding the data center has sparked a broader debate about Michigan's approach to fast-tracking energy-hungry data center projects tied to the AI boom. With at least 15 data center projects proposed across the state in the past year, Nessel's office is reviewing all potential options to defend energy customers and demanding further clarity on what protections have been put in place.
As the situation unfolds, it remains unclear whether the Michigan Public Service Commission will grant Nessel's request for a rehearing or stick with its original decision. However, one thing is certain: the fate of ratepayers and the environment hangs in the balance as the state grapples with the implications of this massive data center project.