What happened
Michigan regulators approved DTE Energy's plan to power a new $7 billion, 1.4-gigawatt hyperscale data centre for Oracle and OpenAI, part of their Stargate campus initiative. Located on 575 acres south of Ann Arbor, this facility will become Michigan's largest electricity user, increasing DTE's average daily load by 23-28%. The Michigan Public Service Commission granted approval after reviewing DTE's contracts, which stipulate no cost transfer to other customers, despite public concerns regarding energy reliability and climate impact. Construction is scheduled for early 2026, pending environmental permits.
Why it matters
The approval of Michigan's largest electricity consumer introduces a significant operational constraint on DTE Energy's grid management and energy procurement teams. While contracts aim to prevent cost transfer to other customers, the 23-28% increase in average daily load raises due diligence requirements for maintaining grid stability and ensuring reliable power delivery. This creates an oversight burden for state energy regulators and increases exposure for all connected operations to potential energy supply fluctuations, despite regulatory assurances. The primary burden falls on DTE's infrastructure and operational planning departments to absorb this demand without compromising service.
