Michigan Attorney General Dana Nessel has filed a petition for rehearing with the Michigan Public Service Commission, challenging the state's fast-tracked approval of special power contracts for a massive data center project in Washtenaw County. The decision, which was made without a contested case hearing, has raised concerns among residents, environmental advocates, and consumer watchdogs about the potential risks to ratepayers and the environment.
The 1.4-gigawatt hyperscale artificial intelligence data center, developed by Oracle, OpenAI, and Related Digital, is expected to consume as much electricity as nearly one million homes. Its scale has led to concerns about long-term impacts on electric rates, grid reliability, and the environment.
Nessel's move pits her against Governor Gretchen Whitmer, who has publicly backed the project as "the largest economic project in Michigan history." Whitmer has celebrated the project, citing thousands of construction jobs and hundreds of permanent positions. However, Nessel argues that the commission's decision was irresponsible and cut corners, shutting out the public and their advocates.
The attorney general is seeking clarification on how the conditions imposed by the commission will protect ratepayers, noting that many appear to rely on repeated assurances from DTE, rather than concrete commitments backed by evidence. She 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.
Nessel has expressed disappointment with the commission's decision, stating that it serves only the interests of DTE and the billion-dollar businesses involved, rather than the Michigan public. She argues that a full contested case concerning the still-secret contracts is necessary to review their full impact on ratepayers and confirm that protections are in place.
The controversy surrounding the data center project has sparked a broader debate over whether Michigan should keep fast-tracking energy-hungry data center projects tied to the AI boom. At least 15 data center projects have been proposed across the state in the past year, with many critics arguing that the rush to approve these contracts is part of a pattern of deep-pocketed utilities and developers seeking to capitalize on the AI boom.
As Nessel's office continues to review potential options to defend energy customers in the state, they are demanding further clarity on what protections the commission has put in place. The issue highlights concerns about transparency, accountability, and the need for robust safeguards to protect ratepayers from the potential risks of these massive data center projects.
The 1.4-gigawatt hyperscale artificial intelligence data center, developed by Oracle, OpenAI, and Related Digital, is expected to consume as much electricity as nearly one million homes. Its scale has led to concerns about long-term impacts on electric rates, grid reliability, and the environment.
Nessel's move pits her against Governor Gretchen Whitmer, who has publicly backed the project as "the largest economic project in Michigan history." Whitmer has celebrated the project, citing thousands of construction jobs and hundreds of permanent positions. However, Nessel argues that the commission's decision was irresponsible and cut corners, shutting out the public and their advocates.
The attorney general is seeking clarification on how the conditions imposed by the commission will protect ratepayers, noting that many appear to rely on repeated assurances from DTE, rather than concrete commitments backed by evidence. She 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.
Nessel has expressed disappointment with the commission's decision, stating that it serves only the interests of DTE and the billion-dollar businesses involved, rather than the Michigan public. She argues that a full contested case concerning the still-secret contracts is necessary to review their full impact on ratepayers and confirm that protections are in place.
The controversy surrounding the data center project has sparked a broader debate over whether Michigan should keep fast-tracking energy-hungry data center projects tied to the AI boom. At least 15 data center projects have been proposed across the state in the past year, with many critics arguing that the rush to approve these contracts is part of a pattern of deep-pocketed utilities and developers seeking to capitalize on the AI boom.
As Nessel's office continues to review potential options to defend energy customers in the state, they are demanding further clarity on what protections the commission has put in place. The issue highlights concerns about transparency, accountability, and the need for robust safeguards to protect ratepayers from the potential risks of these massive data center projects.
this is like totally crazy!!! i get why Dana Nessel is upset tho, a fast-tracked approval without a contested case hearing does sound kinda shady 
its not right that DTE gets to be the financial backstop for the data center operator - shouldn't it be the other way around? 
at least 15 data center projects proposed across michigan in the past year is wild 
anyway, i hope Nessel gets some answers about what protections are in place for ratepayers 
This whole thing is pretty wild... Like, what's going on here? So we've got this huge data center project that's gonna use up all the electricity of like, a million homes 
. And our AG Dana Nessel is all like "wait a minute, how can we be so sure this isn't gonna blow up in our faces?" 
It's not like we're talking about some small-time business here, we're talking about a massive project that's gonna affect entire communities 
.
I mean, I'm not saying the data center isn't important, but let's at least have a serious discussion about it instead of just glossing over all the potential risks 
.
That doesn't seem right to me 
. I mean, you've got the big players (Oracle, OpenAI, etc.) trying to push their agenda through without any real scrutiny, and our poor Attorney General Dana Nessel is just trying to hold them accountable 
. Like, what's the point of even having a Public Service Commission if they're just going to rubber-stamp whatever the corporations want? 
And don't even get me started on Governor Whitmer - I guess she's more concerned with those thousands of construction jobs than actual transparency and public oversight 
️.
and I totally get why Dana Nessel is speaking up - it's not right that the public was shut out of the process 
and now we're left wondering what safeguards are actually in place 
its like they got a free pass 
and now people are worried about their electricity rates & environmental impact 
Nessel's trying to hold them accountable, which is kinda admirable 
, and it's not even up for public debate 
. I mean, what if something goes wrong? Will we just be expected to absorb the costs? 
.