Michigan Regulators Delay Vote on Power Contracts for Oracle's AI Data Center
December 4, 2025
In a move highlighting the regulatory complexities of powering the AI boom, Michigan's Public Service Commission has postponed a critical vote on electricity supply contracts for a major artificial intelligence data center project proposed by Oracle. The decision represents a temporary setback for both the tech giant and utility DTE Electric, which sought expedited approval for the high-volume power deals essential to the facility's operation.
The commission was scheduled to vote on Friday, December 5th, on DTE's application for the contracts but has now delayed its decision without setting a new date. The contracts are intended to supply power to a planned AI data center complex in Saline Township, a project that underscores the intense energy demands of modern computing infrastructure. The proposed facility is part of Oracle's significant push to expand its cloud and AI infrastructure footprint.
While specific financial terms were not disclosed, the scale of the project implies power commitments on the order of hundreds of megawatts, a level of demand comparable to that of a small city. This immense requirement has placed the proposal under heightened scrutiny from regulators and the public, balancing economic development promises against grid reliability and cost impacts on other ratepayers.
“The Commission is continuing its review of the application and the extensive record in this case,” a spokesperson stated, indicating the need for further deliberation on the complex agreements. The delay follows a public hearing where the contracts faced criticism, reflecting growing scrutiny over the energy and economic implications of large-scale data center developments.
The outcome of this regulatory process is being closely watched by the industry, as it may set a precedent for how states manage the substantial and sudden energy loads required by advanced computing facilities. A rejection or heavily modified approval could influence future site selection for AI data centers, potentially directing investment to regions with more streamlined regulatory pathways or surplus generation capacity.
Source: crainsdetroit
Michigan Regulators Delay Vote on Power Contracts for Oracle's AI Data Center
