Backs new electricity rate for large power users
Michigan utility Consumers Energy (CMS) is set to provide 1GW of new power load to a planned hyperscale data center.
“The data center agreement is a big win and reflects progress in our growth as well as the opportunity to invest in new renewable and thermal resources,” Consumers Energy CEO Garrick Rochow said in the company’s Q2 earnings call.
The data center developer and the exact location of the site were not disclosed, but it will be located within the utility’s Lower Peninsula service territory.
According to a spokesperson, the new data center load will increase into the 2030s, providing the utility with time to plan for any new capacity that may be needed to power the data center.
Commenting on future data center growth across the utility’s service territory, Rochow said: “We continue to see positive momentum with data centers within the 9GW pipeline and expect additional progress once we finalize the data center tariff.”
CMS is in the process of requesting approval of a special electricity rate for large power users from the Michigan Public Service Commission. The goal of the tariff is to prevent cost-shifting to avoid other ratepayers footing the bill for serving large new power loads.
CMS currently has a $5 billion capital expenditure forecast, along with two percent to three percent sales growth, in its Integrated Resource Plan (IRP). It expects to revise those targets upwards to meet growing demand for power in Michigan, especially as data center growth in the state increases.
Consumers Energy provides services to most of Michigan, supplying power to more than 6.7 million people. Their coverage spans all 68 counties in the Lower Peninsula and extends into sections of the Upper Peninsula.
Michigan is fast becoming a hotbed of data center activity. Last week, DTE Energy - which serves 2.3 million customers across Michigan - reported in its Q2 earnings that it was in talks with data centers representing up to 7GW of new capacity in Michigan, with 3GW in advanced discussions.
At present, Switch is the largest player in the state, with 365, Bedrock, and Sentinum also present. In November 2024, Switch announced intentions to expand its data center in Grand Rapids, Michigan.
