‘We don’t even know who signed the contracts’: AG Nessel challenges Michigan’s secret data center deal

Michigan Attorney General Dana Nessel is pursuing legal action against the Michigan Public Service Commission (MPSC) to unseal heavily redacted contracts between DTE Electric and Green Chile Ventures LLC, the developer behind a major Oracle/OpenAI data center under construction in Saline Township. Nessel's office filed a challenge with the Michigan Court of Appeals, seeking a contested hearing to reveal the terms and signatories of agreements that she argues were approved without sufficient transparency. She expresses concern over potential financial risks to utility customers and taxpayers should the company default or abandon the facility, and questions the necessity of substantial tax incentives for "the wealthiest corporations."

State Representative Jennifer Conlin (D-Ann Arbor), who initially voted for the tax incentives but later changed her stance, revealed that many legislators now have "buyer's remorse." She described how the tax break legislation, comprising House Bill 4906 and Senate Bill 237, moved quickly through Lansing, with environmental concerns emerging only after initial votes. Both Nessel and Conlin highlighted the rapid expansion of data centers in Michigan, noting recent controversies in Howell Township (where a project was withdrawn), Lyon Township (facing recall efforts over a proposed Project Flex data center), and Ypsilanti Township (where the University of Michigan and Los Alamos National Laboratory plan a high-performance computing center despite resistance).

Nessel advocated for a statewide moratorium on new hyperscale data centers, similar to one enacted in New York, to allow time for stronger protections and transparency rules to be implemented. Conlin, while hesitant about a blanket moratorium due to potential lost opportunities, conceded that current protections are insufficient and that local communities lack adequate control. Lawmakers have introduced a package of bills to address decommissioning, community benefits, noise, water use, and non-disclosure agreements, aiming to establish new safeguards for ratepayers and local governments amidst the ongoing influx of data center development.