Michigan's Attorney General Dana Nessel has filed a petition for rehearing with the state's utility regulators, seeking to block the approval of special power contracts for a massive data center in Washtenaw County. The project, backed by Oracle, OpenAI, and developer Related Digital, is set to be one of the largest data centers in the country, consuming as much electricity as nearly 1 million homes.
Nessel's office has raised concerns about the potential risks to ratepayers, including the possibility of higher costs, grid strain, and environmental harm. The attorney general argues that the approval process was rushed and that the commission did not provide adequate scrutiny or transparency.
The data center project has sparked controversy among residents, environmental advocates, and consumer watchdogs. Over 5,000 public comments opposing the power deal were submitted to the commission ahead of its December vote. Critics argue that the state's utilities and developers are seeking to capitalize on the AI boom, driving a nationwide surge in electricity demand from large-scale data centers.
Nessel's move puts her at odds with Governor Gretchen Whitmer, who has publicly backed the project as "the largest economic project in Michigan history." Whitmer has cited thousands of construction jobs and hundreds of permanent positions as benefits. However, Nessel argues that the commission's approval process served only the interests of DTE Energy and the billion-dollar businesses involved, rather than Michigan residents.
The attorney general is seeking clarification on how the conditions imposed by the commission will protect ratepayers and is concerned about the lack of transparency in the project. She has called for a full contested case to review the contracts and assess affordability claims.
The controversy surrounding the data center project highlights the need for greater scrutiny and transparency in the state's energy policy, particularly when it comes to large-scale infrastructure projects like data centers. As Nessel notes, "As my office continues to review all potential options to defend energy customers in our state, we must demand further clarity on what protections the Commission has put in place and continue to demand a full contested case concerning these still-secret contracts."
Nessel's office has raised concerns about the potential risks to ratepayers, including the possibility of higher costs, grid strain, and environmental harm. The attorney general argues that the approval process was rushed and that the commission did not provide adequate scrutiny or transparency.
The data center project has sparked controversy among residents, environmental advocates, and consumer watchdogs. Over 5,000 public comments opposing the power deal were submitted to the commission ahead of its December vote. Critics argue that the state's utilities and developers are seeking to capitalize on the AI boom, driving a nationwide surge in electricity demand from large-scale data centers.
Nessel's move puts her at odds with Governor Gretchen Whitmer, who has publicly backed the project as "the largest economic project in Michigan history." Whitmer has cited thousands of construction jobs and hundreds of permanent positions as benefits. However, Nessel argues that the commission's approval process served only the interests of DTE Energy and the billion-dollar businesses involved, rather than Michigan residents.
The attorney general is seeking clarification on how the conditions imposed by the commission will protect ratepayers and is concerned about the lack of transparency in the project. She has called for a full contested case to review the contracts and assess affordability claims.
The controversy surrounding the data center project highlights the need for greater scrutiny and transparency in the state's energy policy, particularly when it comes to large-scale infrastructure projects like data centers. As Nessel notes, "As my office continues to review all potential options to defend energy customers in our state, we must demand further clarity on what protections the Commission has put in place and continue to demand a full contested case concerning these still-secret contracts."