Regulators approve DTE contracts for Michigan’s first hyperscale data center

Michigan utility regulators have approved DTE Energy's proposal to supply power for the state's first hyperscale data center, a $7 billion project led by tech firms OpenAI, Oracle, and Related Digital. The decision came despite criticism from some residents concerned about the facility's environmental impacts and energy demands. DTE will absorb the financial risk if the projected $300 million in cost savings fails to materialize. The data center is expected to increase DTE's electric load by 25%, and the company plans to meet the surge without building new power plants. Meanwhile, Consumers Energy projects a 35% increase in peak demand from data centers by 2035. The data center development has faced bipartisan pushback, including a bill to repeal recent tax exemptions that have attracted the industry to Michigan. Supporters argue Michigan must embrace the 21st century economy, while critics warn of environmental and grid reliability risks.