Michigan approves DTE power deals for data center, adds grid safeguards

Reuters06:29

Michigan approves DTE power deals for data center, adds grid safeguards

Dec 18 (Reuters) - Michigan regulators on Thursday conditionally approved special contracts for DTE Energy's DTE.N unit to supply power to a Washtenaw County data center.

The Michigan Public Service Commission (MPSC), however, imposed additional mandatory safeguards meant to protect residential and other customers from bearing any costs related to the development and continued operation of the data center.

DTE Energy is also mandated to absorb any costs it cannot recover from the data center's owner, Green Chile Ventures, a unit of Oracle ORCL.N, alongside OpenAI and Related Digital.

It must also update emergency procedures so that in any such event, the data center's load is reduced before interrupting service to other customers.

Power demand is hitting record highs as the rapid expansion of data centers — especially those supporting artificial intelligence — drives a surge in electricity consumption, adding strain to already stretched power grids.

Michigan requires DTE Electric to cover any costs for serving Oracle's ORCL.N planned 1,383‑MW Saline Township data center that are not recovered from Green Chile Ventures LLC.

MPSC requires DTE to submit, within 90 days, a proposal for a new tariff designed for very large customers like data centers.

(Reporting by Varun Sahay in Bengaluru; Editing by Shailesh Kuber)

((Varun.Sahay@thomsonreuters.com;))

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