Michigan AG Nessel Critiques DTE’s Expedited Data Center Approval Process

SALINE TOWNSHIP, Mich. — Michigan Attorney General Dana Nessel is raising concerns over DTE Energy‘s push for quick approval of a contract to power the state’s first hyperscale data center. During a news conference Tuesday, Nessel criticized the Michigan Public Service Commission‘s (MPSC) handling of the situation, citing what she called “unprecedented political and industry pressure.”

“This does appear to be a rush job,” Nessel said, expressing fears that the commission might “rubber stamp” the proposal without adequate review.

The proposed data center, which is planned to be built by Oracle, OpenAI, and Related Digital for $7 billion, would require a significant power supply of 1.4 gigawatts — enough to serve about 1 million homes. DTE seeks the commission’s approval before the end of the year, aiming to avoid delays that could jeopardize the project.

Officials from the MPSC did not immediately respond to requests for comment on the expedited approval process. The commission announced a public hearing set for Dec. 3 to gather comments from the community.

Multiple advocacy groups are calling for a deeper examination of the proposal, including a contested case process that involves a series of public hearings and formal inquiries. Nessel described the need for transparency, stating, “We can’t claim fair regulation if we’re starting out with shortcuts.”

State Representative Morgan Foreman highlighted the implications of bypassing public engagement, raising concerns about potential long-term effects on future projects, saying, “If we allow one utility to bypass public engagement, we’ve opened the door for it to happen again, and again.”

DTE has maintained that the project represents significant economic potential for Michigan, promising hundreds of jobs and millions in tax revenue. Governor Gretchen Whitmer supports the initiative, calling it “the largest economic project in Michigan history.”

Despite DTE’s assurances, critics worry that the fast-tracked approval process could escalate energy costs. DTE serves 2.2 million customers and has faced criticism for high rates and frequent outages.

Opponents are particularly wary of the environmental implications, as hyperscale data centers consume extensive energy and water, raising concerns about whether utilities can sustainably deliver necessary resources without burdening residential customers.

The Michigan law mandates data centers procure at least 90% clean energy. While DTE has stated adherence to these regulations, they have not disclosed specific plans lately. Charlotte Jameson, chief policy officer for the Michigan Environmental Council, emphasized the need for commitments from data centers to support renewable energy initiatives.

The MPSC is set to meet on Dec. 5 to consider the contract, and if the request for a contested case is not granted, further appeals could follow.