DTE hints at new data center development, stirs fight on energy sources
DTE Energy said it expects to announce additional agreements with data center developers by the end of the year, following approved power contracts for large facilities in Saline Township and Van Buren Township. Environmental groups fear the projects will increase electricity costs, water demand and reliance on natural gas, while DTE and business groups argue new gas plants are needed for overall grid reliability.
DTE Energy is preparing potential agreements to supply as much as 2 gigawatts of additional power to data center developers, with announcements expected by the end of the year. The utility already has approved contracts to serve a 1.4-gigawatt hyperscale facility in Saline Township being developed by Oracle, OpenAI and Related Digital, and a 1-gigawatt facility in Van Buren Township being developed by Google.
The agreements have intensified debate over DTE's long-range energy plan, which calls for two new natural gas plants in addition to expanded nuclear, wind and solar generation. Environmental advocates say data center demand could shift the costs and climate impacts of the plants onto other ratepayers, while DTE and the Michigan Chamber of Commerce maintain that the plants are needed to replace retiring coal generation and preserve grid reliability. The Michigan Public Service Commission has required the data center customers to cover specified costs, including renewable generation and battery storage associated with Google's contract.