Gov. Whitmer, AG Nessel Submit Opposing Comments on Hearing for DTE Contract With Data Center

Two of Michigan's most powerful women are on opposite sides of DTE's request to fast-track a contract with the developers of a $7 billion, 1.4 Gigawatt data center.

The Michigan Public Service Commission meets at 1 p.m. Friday, but it does not appear that the Saline Township data center is on the agenda.

Gov. Gretchen Whitmer and Attorney General Dana Nessel, both Democrats, were among hundreds of people who submitted comments on DTE's request to quickly approve the contract and avoid a longer public hearing process. Whitmer, who'd boasted about the project in a previous press release, urged the Michigan Public Service Commission to grant DTE's wish. Nessel called for a longer hearing, with more transparency.

Comments from Gov. Whitmer

“Michigan has always been a leader in building the next big thing.

“The reality is that data centers are going to be a big part of America’s future. The question isn’t whether they will be built, but rather: Can Michigan benefit from these jobs and build data centers in a smarter way while upholding our strong environmental laws to protect our precious natural resources? We have an opportunity to do both. We can set an example for the rest of the nation on how to build these facilities the right way and grow our economy at the same time.

“This project will create 2,500 good-paying union construction jobs, more than 450 permanent good-paying jobs on site, and 1,500 more in the community. That means more diners in local restaurants and more shoppers at the local grocery store or small businesses, growing the local economy. It also means millions more in funding for local schools and local roads to help students thrive and save drivers time and money, as well as direct investments in local fire departments.

“I am proud that Michigan was chosen for this project because of our strong workforce and talent base, as well as our competitive business environment. Thousands of union construction workers will build this project and thousands more graduates of our public universities, including the University of Michigan, will be able to find cutting-edge, high-tech jobs right here in Michigan because of this investment.

“As Michiganders, we take pride in our environment and natural resources. I would only ever support a project that meets the state’s highest environmental standards. That’s why we worked with these companies to ensure that the data center they’re designing—one of the most advanced ones ever built—will protect Michigan’s air, water, and land. The facility will not use any more water than a typical office building because it will have a closed-loop, air cooling system instead of one that uses a lot more water. The facility will also preserve hundreds of acres of farmland, wetlands, and open space to maintain the surrounding area for future generations to enjoy.

“We are also working together to ensure that electricity rates do not go up because of this project. DTE already supplies the energy this facility needs and Oracle will fund any additional upgrades to the grid out of their own pocket, consistent with Michigan law.

“Right now, time is of the essence. There is a shortage of global computing capacity, and China is moving aggressively to build their own centers and get a leg up on America. At the same time, other states are moving fast too, competing against Michigan to land similar projects with far less oversight. This is a matter of national security and economic competitiveness, and if we do not act, it will cost us thousands of jobs and billions of dollars of investment in our economy.

“Let’s reject false choices as we work together to create thousands of good-paying jobs AND protect our environment AND outcompete other states and nations. Let’s get it done.”

Comments from AG Nessel

“DTE continues to push for a rubber-stamp approval of a secret deal, but time and again, my office has contested their filings – and time after time, the utility has shown it is not a trustworthy partner, routinely filling cases with unjustified costs,” Nessel said. “We must be able to scrutinize DTE's ability to sell this massive amount of electricity without negatively impacting residents. No matter how DTE tries to explain it away, this case – involving hundreds of millions of dollars in costs just to connect the data center to DTE’s power grid – should be treated as contested like any other, and their customers have made it overwhelmingly clear that they too want full public hearings.”

According to a press release she issued, she listed several critical deficiencies in DTE’s ex parte request, including the utility’s:

• Failure to detail all resources required to provide power to the data center, and how the data center will pay for those resources, despite a requirement by the MPSC for large customers to do so per its Order in Consumers Energy’s recent data center case;
• Failure to implement terms required by the Commission in Consumers Energy’s recent data center case;
• Failure to explain whether and how termination fee provisions from the contracts will apply in the near-term to cover costs;
• Insufficient explanation of ratepayer impacts; and
• Unjustified redactions and rushed deadlines.

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