Power Struggles Shape Michigan’s Data Center Debate
Michigan Attorney General Dana Nessel is challenging DTE Energy contracts tied to proposed Google, Oracle and OpenAI data centers, arguing existing utility customers could bear excessive transmission and development costs. Separately, Delhi Township trustees voted unanimously to oppose a proposed $10 billion Lighthouse Sustainability data center near Holt, where a moratorium is already in place and rezoning would be required.
Michigan Attorney General Dana Nessel asked the Michigan Public Service Commission to reconsider DTE Energy contracts supporting Google’s proposed data center in Van Buren Township and an Oracle and OpenAI facility under construction in Saline Township. Nessel is seeking stronger financial guarantees, annual cost accounting and additional review of transmission expenses, while the commission and DTE maintain that the agreements protect customers and could generate about $1.7 billion in benefits over 20 years. The challenges have not overturned the contracts, and incoming Attorney General-elect Eli Savit has indicated he intends to continue representing utility customers before regulators.
Local opposition is also mounting near Lansing. Delhi Township trustees voted 6-0 against a proposed $10 billion data center on 423 acres near Holt, introduced by Lighthouse Sustainability and the Lansing Economic Area Partnership. Officials said they were not consulted before the announcement; the site would require rezoning, while the township already has a data center moratorium. DTE Energy and Consumers Energy are separately suing to block recently approved campaign-finance restrictions, though those lawsuits do not directly regulate data centers.