The Michigan Public Service Commission voted unanimously on October 1 to grant conditional approval for DTE Energy's contracts to power Google's 1-gigawatt data center project in Van Buren Township, according to Planet Detroit. It is the first Michigan hyperscale data center power deal to be decided through a contested case rather than fast-tracked approval.
The primary supply agreement runs for a 20-year term with a minimum monthly billing demand of 80% of contract capacity, and includes a termination payment structured to ensure Google pays for at least 15 years of minimum monthly charges, MPSC staff said. The terms also require Google to pay for the development of up to 1,600 megawatts of renewable energy and 480 MW of battery energy storage by DTE Electric. Michigan Attorney General Dana Nessel had pushed for even stronger terms, including a 90% minimum billing demand, citing the risk of stranded utility assets if the facility uses less power than forecast.
DTE said the data center is expected to begin service in December 2027 and reach maximum load by December 2028. Separately, the Wayne County Commission voted the same day to override a veto of a tax exemption for the project, saving Google more than $125 million, and the Van Buren Township Planning Commission could vote on a final site plan as soon as its October 14 meeting. The project is set to occupy 282 acres north of I-94 between Haggerty Road and I-275.
A DTE spokesperson said Google will cover the full cost of powering its data center and will bring new clean energy resources onto the grid.