OpenAI's Stargate data center gets approval to receive 1.4 gigawatts of power in Michigan — some residents furious as energy company is given go-ahead by regulatory body without hearing opposition

The Michigan Public Service Commission (MPSC) has given DTE Energy permission to deliver 1.4 gigawatts of power to a planned data center that will be built in Saline Township, about 40 miles southwest of downtown Detroit. This data center project is part of the Stargate data center project by OpenAI and Oracle, which aims to deliver more than 5GW of computing capacity. According to the Detroit Free Press, DTE filed an “ex parte” motion with the MPSC to get the nod for its contract without contest, with the commission voting 3-0 for its approval.

This move meant that DTE Energy did not have to go through a lengthy hearing, wherein opposing groups could seek expert testimony and present evidence to challenge DTE’s claims. Many residents are concerned that this massive project would cause electricity prices to spike and affect the water quality in the area — issues that several U.S. senators are also looking into. On the other hand, the utility company argued that it didn’t need to prove that this project would affect energy prices for local residents, especially as a 2024 state law prevents data centers from passing on energy costs to the community to qualify for preferential tax treatment.

Aside from this, DTE’s contract with Green Chile Ventures, an Oracle subsidiary, requires that the latter will pay 80% of the contracted capacity, whether or not it actually uses it. This ready-to-serve provision in the power agreement helps ensure the power utility’s expenditure on additional infrastructure to support the AI data center will not be passed on to the average consumer. The contract will also last for at least 19 years, giving the power provider ample time to recoup its expenses from the data center and not from the community. Furthermore, if the data center fails to pay for its energy costs, DTE cannot pass them on to other consumers.

Despite these mechanisms, opponents of the plan were still dismayed about not being heard. “I, along with everyone here… probably don’t feel like they’ve been publicly served today. When you make these decisions, you’re eliminating the very necessity of what public service bodies are all about,” Wendy Albers, a resident of nearby Augusta Township, told the MPSC. “I appreciate the protections you put in place, but I just don’t trust them.”

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