Michigan's Attorney General Dana Nessel is pushing for a do-over on the approval of special power contracts for a massive data center planned in Washtenaw County, citing concerns that ratepayers will be left exposed to higher costs.
Nessel's office filed a petition for rehearing with the Michigan Public Service Commission (MPSC) following the commission's conditional approval of two special contracts sought by DTE Energy to serve a 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 argues that the commission's fast-tracked decision was irresponsible and cut corners, shutting out the public and their advocates. She claims that granting approval of the contracts ex parte served only the interests of DTE and the billion-dollar businesses involved, rather than Michigan residents.
The attorney general is seeking clarification on how the conditions imposed by the MPSC will protect ratepayers, citing that many rely on repeated assurances from DTE, rather than concrete commitments backed by evidence. Nessel also objects to the commission allowing DTE to serve as the project's financial backstop, rather than requiring the data center operator to provide sufficient collateral to cover potential risks.
Critics argue that the rush to approve the contracts is part of a broader pattern where deep-pocketed utilities and developers seek to capitalize on the AI boom, which is driving a nationwide surge in electricity demand from large-scale data centers. The project has already sparked controversy over concerns about wetlands destruction, water contamination risks, and the permanent transformation of a rural farming community.
Over 5,000 public comments opposing the data center power deal were submitted to the commission ahead of its December vote. Nessel's office is now seeking further clarity on what protections the MPSC has put in place and demanding a full contested case concerning the still-secret contracts.
As Michigan's chief consumer advocate, it is Nessel's responsibility to ensure that utility customers in her state are adequately protected, especially on a project as massive, expensive, and unprecedented as this data center.
Nessel's office filed a petition for rehearing with the Michigan Public Service Commission (MPSC) following the commission's conditional approval of two special contracts sought by DTE Energy to serve a 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 argues that the commission's fast-tracked decision was irresponsible and cut corners, shutting out the public and their advocates. She claims that granting approval of the contracts ex parte served only the interests of DTE and the billion-dollar businesses involved, rather than Michigan residents.
The attorney general is seeking clarification on how the conditions imposed by the MPSC will protect ratepayers, citing that many rely on repeated assurances from DTE, rather than concrete commitments backed by evidence. Nessel also objects to the commission allowing DTE to serve as the project's financial backstop, rather than requiring the data center operator to provide sufficient collateral to cover potential risks.
Critics argue that the rush to approve the contracts is part of a broader pattern where deep-pocketed utilities and developers seek to capitalize on the AI boom, which is driving a nationwide surge in electricity demand from large-scale data centers. The project has already sparked controversy over concerns about wetlands destruction, water contamination risks, and the permanent transformation of a rural farming community.
Over 5,000 public comments opposing the data center power deal were submitted to the commission ahead of its December vote. Nessel's office is now seeking further clarity on what protections the MPSC has put in place and demanding a full contested case concerning the still-secret contracts.
As Michigan's chief consumer advocate, it is Nessel's responsibility to ensure that utility customers in her state are adequately protected, especially on a project as massive, expensive, and unprecedented as this data center.
. It's like they're trying to make all the money without considering the long-term effects on us Michigan residents 
. Nessel is doing a great job pushing for more transparency and accountability - we need to know that our energy rates aren't gonna skyrocket because of this project 
. And can you believe DTE gets to act as its own financial backstop? 
That's just shady business practices if you ask me...but hey, at least the MPSC is supposed to protect us ratepayers 
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I mean, 1.4-gigawatt of electricity consumption? That's like, a lot! 
DTE Energy's financial backstop thing just doesn't sit right with me either... shouldn't the data center operator be on the hook for potential risks? 
We need more transparency and accountability here! 
? I mean, DTE Energy wants to build a data center that uses as much electricity as 1 million homes, but what about the people who have to pay for it? 
It's like they're saying, "Hey, we'll just pass the costs on to you, ratepayer!" 
. And another thing, if DTE is gonna act as the financial backstop for this project, that's just a fancy way of saying they're taking on all the risk 
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. I'd like to see more robust protections in place to safeguard Michigan's residents from potentially skyrocketing electric rates and long-term grid reliability issues 
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. As we move forward with this technology, it's essential that policymakers prioritize responsible and inclusive decision-making processes 
. I mean, you've got a massive data center that's gonna use up as much electricity as like 1 million homes - that's crazy! And now the state AG is trying to step in and make sure that ratepayers aren't left holding the bag 
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. I mean, we need transparency and accountability here. The fact that DTE Energy gets to be the financial backstop for this project while the data center operator doesn't have to provide any collateral is just weird 
, and I think that's awesome 
. We need more voices speaking up on behalf of the people, not just these big corporations 
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We can't just let big corps like DTE Energy sweep everything under the rug without proper oversight. Those ratepayer protections better be ironclad, or Nessel's gonna make sure they are 
situation with DTE Energy and the proposed data center in Michigan. The fact that ratepayers might be stuck with higher costs is super concerning - we're talking about nearly a million homes' worth of electricity here! 
. The fact that the MPSC allowed it to happen is pretty alarming. We need to make sure that utility customers are protected on this massive project.
. It just goes to show how we're all being affected by these new technologies, even if it feels a bit out of control right now 
she literally fought for ratepayers' rights against DTE Energy's hyperscale AI data center 
it's like they just swooped in 2 approve the deal w/o even listenin 2 ppl's concerns 
& now shes demandin 4 a do-over!!! 
its all about protectin our state's consumers 4 life 
. I get why she's worried tho - 1.4 GW of electricity is equivalent to like a million homes' worth, and that's just crazy talk! 
. Like, we gotta be careful here, 'kay? We need to make sure ratepayers aren't left holding the bag if something goes wrong 
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The fact that the MPSC allowed DTE to serve as the financial backstop raises some serious red flags - it's like they're putting all their eggs in one basket, so to speak. And what about the environmental impacts of this project? The concerns over wetlands destruction and water contamination risks are definitely valid... We need more transparency and accountability from our regulatory bodies, especially when it comes to large-scale infrastructure projects that have far-reaching consequences for our communities and the environment. 
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. As someone who values transparency and accountability, it's frustrating to see the MPSC rushing through this without even giving ratepayers a chance to speak out