Full of controversy but still approved: Michigan grants power supply for Oracle and OpenAI super data center

The regulatory agency in Michigan, USA, unanimously approved the application submitted by the utility company DTE Energy after a controversial hearing, agreeing to provide electricity for a massive data center project planned by Oracle and OpenAI.

DTE had previously requested the regulatory agency to expedite the approval of its power supply plan to support the data center facility located in Saline, with a total investment of billions of dollars and an installed capacity of 1.4 gigawatts. The regulatory agency stated on Thursday that the contract drafted between the utility company and the tech firms could protect grid safety and safeguard the interests of ordinary users.

Dan Scripps, chairman of the Michigan Public Service Commission, stated, “These contracts will bring net financial benefits to DTE's other users. The relevant agreements require tech companies to provide collateral in advance. The contracts do not assume that customers will necessarily maintain financial solvency.”

The rapid expansion of data centers in the United States is reshaping the energy industry and has sparked increasing controversy—these facilities' electricity consumption could be equivalent to that of an entire city. A generation capacity of one gigawatt is comparable to that of a traditional nuclear reactor.

According to DTE's filing documents, the agreement between DTE and Oracle will have Oracle bear the project-related costs, including a minimum monthly electricity fee and fees for early termination of the contract. Previous media reports indicated that the project developer would also support construction through approximately $14 billion in debt financing.

After the approval results were announced, DTE's stock price rose slightly, with an increase of about 1% on that day. Oracle's stock price also rose, but by less than 1%.

OpenAI and Oracle stated that the "Stargate" campus located in Saline allows both parties to plan a total data center capacity of over 8 gigawatts in the U.S., with planned total investments exceeding $450 billion over the next three years.

Before the vote, Scripps was repeatedly interrupted by individuals opposing the data center project. After one loud interruption, he pointed to the audience and said, “This is the last time.” During the hearing, several opponents approached the podium to express their concerns:

A man claiming to live near the project expressed his worries that the project might bring air and river water quality pollution to the community.

Local farmer Beth Foley said, “Your political legacy is to bow to political pressure and set aside the interests of the residents you serve. I drive past this project every day, and it looks like the end of the world.”