DTE Anticipates Regulatory Approval for OpenAI-Oracle Hyperscale Data Center Power Deal
December 6, 2025
DTE Energy remains confident that Michigan regulators will approve critical power contracts for a landmark hyperscale data center project, a development poised to significantly alter the state's technological and economic landscape. The facility, backed by artificial intelligence leader OpenAI and cloud computing giant Oracle, represents Michigan's first major foray into the competitive hyperscale data center market, a sector essential for powering the next generation of AI and advanced computing.
Despite a missed fast-track approval deadline, DTE officials stated in a recent investor update that they "anticipate approval on December 18," when the Michigan Public Service Commission (MPSC) is next scheduled to meet. The utility is seeking expedited, ex-parte approval for contracts to supply a massive 1.4 gigawatts of electricity—an amount exceeding the typical power draw of one million households—to the planned data center. The 2.2-million-square-foot facility is slated for a 575-acre site in Saline Township, with initial development covering approximately 250 acres.
The approval process has become contentious. Michigan Attorney General Dana Nessel has sharply criticized DTE's approach, alleging the utility employed a "manufactured timeline" as a "pressure tactic." She revealed that a previously undisclosed contract clause allows the deadline to be extended to December 19, a fact DTE acknowledged only after her office moved to intervene. Nessel is advocating for a full, transparent public hearing process, stating, "We can’t just take DTE’s word that Michigan ratepayers won’t be left footing the bill for this data center."
In contrast, project developer Related Digital emphasized the project's potential benefits. Spokesperson Kathleen Corless stated, "We continue to believe this is an exceptional opportunity in Michigan to create jobs and build the digital infrastructure our economy needs." The project has garnered support from Governor Gretchen Whitmer, who submitted a public comment to the MPSC framing it as a strategic move to strengthen Michigan's competitiveness in AI and advanced computing, promising thousands of union construction jobs and funding for local infrastructure.
The proposal has sparked significant public debate. A recent online hearing attracted over 860 participants, with many of the 46 speakers urging regulators to deny fast-track approval and ensure thorough scrutiny. While business and labor groups highlight the projected economic windfall, local opposition remains fierce, centering on concerns over transparency, environmental impact, and potential costs to utility customers. DTE contends that the enormous new electricity demand will ultimately lower costs for residential ratepayers by spreading grid fixed costs over greater sales.
Source: mlive
