Key Points
- Michigan has approved a plan to power a massive new data center for Oracle and OpenAI.
- The facility will use 1.4 gigawatts of power, equivalent to a nuclear reactor.
- The decision came after a contentious public hearing with strong opposition from residents.
- Regulators say the deal protects other customers because the tech companies are paying for the project.
Michigan regulators have approved a massive new data center planned by tech giants Oracle and OpenAI. In a unanimous vote on Thursday, officials approved a controversial plan from the utility DTE Energy to power the enormous facility.
The decision came after a heated public hearing at which residents and opponents voiced strong objections. The multi-billion-dollar data center, which will be built in Saline Township, is expected to consume 1.4 gigawatts of power—roughly the same as a traditional nuclear power plant.
The rapid construction of these energy-hungry facilities has become a growing source of controversy across the country.
Regulators, however, insisted that the deal protects regular customers and the state’s power grid. They explained that the contract requires the tech companies to cover all project costs, including upfront collateral. “They show a net financial benefit to DTE’s other customers,” said Dan Scripps, the chair of the Michigan Public Service Commission.
But residents were not convinced. During the hearing, a resident near the site expressed concern about air and water pollution.
Another local farmer, Beth Foley, told the regulators, “Your legacy is bowing to the political pressure at the expense of the residents you serve.” She added, “I drive by the project every day, and it looks like Armageddon.”