Michigan Attorney General Dana Nessel has filed a petition for rehearing with the Michigan Public Service Commission, urging them to reconsider their approval of special power contracts for a massive data center planned in Washtenaw County. The fast-tracked decision could leave electric customers exposed to higher costs, according to Nessel.
The proposed 1.4-gigawatt hyperscale artificial intelligence data center is expected to consume as much electricity as nearly one million homes and has raised concerns among residents, environmental advocates, and consumer watchdogs about its long-term impacts on electric rates, grid reliability, and the environment.
Nessel's move pits her against Governor Gretchen Whitmer, a fellow Democrat who has publicly backed the data center as "the largest economic project in Michigan history." However, Nessel argues that the commission's approval of the contracts was an irresponsible approach that cut corners and shut out the public and their advocates.
The Michigan Public Service Commission claims that its professional staff, advisory staff, and commissioners were provided with unredacted versions of the special contracts and reviewed them thoroughly to ensure existing customers are protected. However, Nessel says that many conditions appear to rely on repeated assurances from DTE, rather than concrete commitments backed by evidence.
Nessel is seeking clarification on how those conditions would protect ratepayers and objects to the commission allowing DTE to serve as the project's financial backstop, rather than requiring the data center operator to provide sufficient collateral to cover potential risks.
The power contracts are one piece of a larger controversy surrounding the Saline Township project referred to as "Project Stargate." Residents and environmental groups have raised alarms about wetlands destruction, water contamination risks, and the permanent transformation of a rural farming community.
With over 5,000 public comments opposing the data center power deal submitted to the commission ahead of its December vote, critics argue that the rush to approve the contracts is part of a broader pattern as deep-pocketed utilities and developers seek to capitalize on the AI boom.
The proposed 1.4-gigawatt hyperscale artificial intelligence data center is expected to consume as much electricity as nearly one million homes and has raised concerns among residents, environmental advocates, and consumer watchdogs about its long-term impacts on electric rates, grid reliability, and the environment.
Nessel's move pits her against Governor Gretchen Whitmer, a fellow Democrat who has publicly backed the data center as "the largest economic project in Michigan history." However, Nessel argues that the commission's approval of the contracts was an irresponsible approach that cut corners and shut out the public and their advocates.
The Michigan Public Service Commission claims that its professional staff, advisory staff, and commissioners were provided with unredacted versions of the special contracts and reviewed them thoroughly to ensure existing customers are protected. However, Nessel says that many conditions appear to rely on repeated assurances from DTE, rather than concrete commitments backed by evidence.
Nessel is seeking clarification on how those conditions would protect ratepayers and objects to the commission allowing DTE to serve as the project's financial backstop, rather than requiring the data center operator to provide sufficient collateral to cover potential risks.
The power contracts are one piece of a larger controversy surrounding the Saline Township project referred to as "Project Stargate." Residents and environmental groups have raised alarms about wetlands destruction, water contamination risks, and the permanent transformation of a rural farming community.
With over 5,000 public comments opposing the data center power deal submitted to the commission ahead of its December vote, critics argue that the rush to approve the contracts is part of a broader pattern as deep-pocketed utilities and developers seek to capitalize on the AI boom.