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Michiganders urge regulators not to rush approval for data center power plan

A man in a light gray parka and veteran's ball cap holds a red sign that says "Say yes to Michigan! Say no to data centers."
Russ McNamara
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WDET
Veteran Jarad Guerrero-Salinas protests DTE Energy in Detroit's Beacon Park, near the utility's headquarters.

Michigan residents demanded more scrutiny of the plan to provide electricity to a proposed data center in rural Washtenaw County on Wednesday night.

They also expressed frustration and distrust with DTE Energy. The utility is asking the state for expedited approval of the company’s contracts with Oracle Corp. for a data center planned in Saline Township, near Ann Arbor.

The facility would require 1.4 gigawatts of power from the electricity provider. The data center is part of Stargate, OpenAI’s $500 billion investment in AI infrastructure around the United States.

DTE Electric has asked the Michigan Public Service Commission to fast-track approval for its plan with Oracle to power the data center. That would bypass a process called a "contested case" that requires the commission to consider evidence and testimony from a variety of sources. Michigan’s Attorney General expressed alarm about the process, calling the hearing “performative listening” in a rebuke last month.

A small group of protesters gathered Wednesday afternoon across the street from DTE Energy’s Detroit headquarters. They were unhappy that DTE has tried to push plans for the data center through without public hearing.

Sarah Brabbs is from York Township, next to Saline. While she is not totally opposed to a data center, she said she’s not a fan of DTE trying to push the project through without allowing the public in on the process.

“Putting rate payers in a situation that you know we will be paying for, probably on multiple levels, is disingenuous, dysfunctional, and unacceptable,” Brabbs said.

Others at the protest said they’re concerned about the potential environmental impact, like how much water the facility could use and the amount of energy it would need to function.

“The access to the Great Lakes, they’re definitely taking advantage of whatever God-given resource in order to just implement whatever quantum, whatever new level of science and technology that they haven’t got consent from the people on if they even want it in the first place,” said Elijah Williams.

A screenshot of a Microsoft Teams meeting with three people displayed. There are Katherine Peretick, Daniel Scripps, and Shaquila Myers, members of the Michigan Public Service Commission.
Elinor Epperson
/
Michigan Public
Michigan Public Service Commissioners Katherine Peretick, Daniel Scripps, and Shaquila Myers listen to public comments about a proposed data center near Saline, Michigan on Wednesday, December 3.

At a virtual hearing Wednesday evening drew almost 90 participants. About 45 people spoke over the two and a half hours, with more in queue when the meeting ended at 9 p.m.

A few speakers voiced support for the project. Most of the supporters represented trade unions or business associations who supported the project for creating jobs.

Randall Whitaker is the president of the Washtenaw County Skilled Building Trades Council. He said the project was an investment in Michigan’s workforce.

“A project like this is huge for workers,” he said.

Constructing the data center would create about 2,500 union jobs, according to DTE’s application. Other supporters argued that the facility would generate millions in tax revenue and attract talent to Michigan.

DTE has said it expects the facility to increase its current peak electrical load by about 25%, but building out the capacity to accommodate that demand would not affect current ratepayers. DTE argues in its application that the data center won’t impact existing customers’ rates because of safeguards they’ve placed in the contracts with Oracle.

“The project strengthens Michigan’s long-term competitiveness in the fast-growing AI and advanced computing sectors, helping ensure our state remains a destination for innovation and talent,” Gov. Gretchen Whitmer said in a statement supporting the project.

But most participants opposed DTE’s request, citing the same concerns as the protesters - future electricity costs, how much water the facility would use, and whether the data center would actually benefit the local community.

Nichole Biber is a member of the Little Traverse Band of Odawa Indians, one of the 12 federally recognized tribes in Michigan. She said she doesn’t trust DTE or Oracle to do what’s best for residents.

“These ‘meaningful guardrails,’ from what I've heard so far, are all on the assurances of DTE and the multibillion dollar corporations that are pushing AI and data centers on us,” she said. “That does not reassure me.”

DTE’s application, which includes the contracts with Oracle, is partially redacted.

Maggie Kaercher, who runs a small fish farm in Dexter and also attended the hearing, said she wants the commission to deny DTE’s request and have the application available for a more thorough review.

“You can't pretend that there's transparency when there is so much redacted out of the papers that we've been able to see,” she said.

“What we are asking, and what many other people are asking for as well, is that the Commission give DTE's proposal the proper scrutiny and ensure transparency,” said Katie Duckworth, an attorney with the Environmental Law and Policy Center.

“Because this is the largest data center to be proposed in Michigan, and it's one of the largest in the nation,” Duckworth said at the hearing.

Duckworth said the organization is concerned with how the data center’s power load will impact DTE’s ability to comply with Michigan’s climate change plans.

“It would also significantly increase the company's renewable energy obligation under Michigan's clean energy laws,” she said.

DTE is prepared for that challenge, the company said.

“Bringing on a data center of this size means more renewables, and more battery storage,” DTE said in a statement. The company also said the data center’s operators will finance the energy generation and storage needed to run the facility.

Duckworth said that solution would be “transformational” for DTE’s grid – if it happens.

“It raises a lot of questions including as to how those batteries would be charged and whether they will be charged by renewable energy, or whether it would involve prolonging the life of polluting fossil fuel plants or even building additional fossil fuel plants in the future,” she said.

Oracle expects the facility to open in December 2026. It won’t reach its maximum capacity of 1.4 gigawatts until December 2027, according to DTE’s application to the commission.

In October, DTE asked the commission to issue a decision by Friday, December 5. The commission is meeting at 1 p.m. that day.

At the virtual hearing, commissioners encouraged members of the public to attend a hearing on December 18 about the facility’s wetland impact permit, hosted by the state Department of Environment, Great Lakes, and Energy.

DTE is among Michigan Public's corporate sponsors.

Elinor Epperson is an environment intern through the Great Lakes News Collaborative. She is wrapping up her master's degree in journalism at Michigan State University.
Brett joined Michigan Public in December 2021 as an editor.