Michigan Regulators Approve DTE's Landmark Power Deal for OpenAI-Linked Hyperscale Data Center
December 18, 2025
In a significant move for the state's technology and energy infrastructure, Michigan regulators have greenlit a pivotal agreement to power one of the largest data center projects announced to date. The decision underscores the escalating energy demands of the artificial intelligence industry and the complex balancing act utilities face in meeting new, massive loads without compromising grid reliability or existing customers.
The Michigan Public Service Commission (MPSC) voted unanimously on Thursday, December 18, to approve DTE Energy’s motion to formalize its contract for the Saline Township project. The commission's 3-0 vote authorizes DTE to supply an initial 1.4 gigawatts of power to the planned hyperscale facility. This substantial capacity, equivalent to the energy consumption of over one million homes, will support a data center developed by Related Digital in partnership with software giant Oracle and leading AI firm OpenAI. The facility is reported to be a key component of OpenAI's ambitious "Stargate" project, aimed at powering next-generation AI development.
The approval came despite considerable opposition from some groups who argued for more rigorous scrutiny of the project's impact. Critics had raised concerns about whether DTE could deliver the enormous power requirement—one of the largest single commitments for a data center—without straining Michigan's electrical grid or leading to increased rates for other utility customers. The MPSC's decision, following the ex parte procedural motion, effectively concludes that the agreement serves the public interest.
This landmark deal signals a new era for Michigan, positioning it as a major contender in the competitive landscape for hyperscale computing and AI infrastructure investment. For the utility sector, it represents both a substantial revenue opportunity and a formidable challenge in capacity planning and generation asset strategy. The project highlights the critical, and growing, interdependence between energy providers and the data center industry, particularly as AI workloads continue to drive unprecedented demand for power.
Source: freep
