Controversial Approval: Michigan Regulators Greenlight Power Supply for Oracle and OpenAI's Mega Data Center

Michigan regulators unanimously approved DTE Energy Co's application to provide electricity for a massive data center project planned by Oracle and OpenAI, following a contentious hearing.

DTE Energy Co had sought expedited regulatory approval for its power supply plan to support the multi-billion-dollar, 1.4-gigawatt facility in Saline. Regulators stated Thursday that the proposed contracts between the utility and tech companies would safeguard grid reliability and protect ordinary ratepayers.

Michigan Public Service Commission Chair Dan Scripps said: "These contracts will generate net financial benefits for DTE's other customers. The agreements require tech firms to provide upfront collateral. The contracts don't assume customers will maintain financial solvency."

The rapid expansion of U.S. data centers is transforming the energy sector while sparking growing controversy - these facilities can consume electricity equivalent to entire cities. One gigawatt represents the output of a traditional nuclear reactor.

According to DTE's filings, Oracle will bear project-related costs under its agreement with DTE, including minimum monthly power payments and early termination fees. Previous reports indicated developers would support construction through approximately $14 billion in debt financing.

Following the approval, DTE Energy Co shares rose about 1%, while Oracle saw less than 1% gain.

OpenAI and Oracle stated their "Stargate" campus in Saline would bring their total planned U.S. data center capacity to over 8 gigawatts, with combined investments exceeding $450 billion over three years.

Before the vote, Scripps was repeatedly interrupted by project opponents. After one outburst, he warned the audience: "This is the last time." During testimony, multiple opponents voiced concerns:

A self-identified local resident expressed fears about potential air and water pollution impacts on the community.

Local farmer Beth Foley said: "Your political legacy will be bending to pressure while disregarding constituents' interests. I drive past this project daily - it looks like the apocalypse."