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Michigan AG challenges electricity contracts for Google's massive data center outside Detroit

Site plan for Google's hyperscale data center in Van Buren Township
Van Buren Township
Site plan for Google's hyperscale data center in Van Buren Township

Michigan Attorney General Dana Nessel has filed a petition for rehearing, citing a "litany of errors," after the Michigan Public Service Commission approved a 20-year electric service contract between DTE Energy and Google to power a hyperscale data center in Van Buren Township.

The commission approved the contract earlier this month, saying it "ensures no costs are passed on to DTE Electric’s other customers.”

Michigan Attorney General Dana Nessel doesn't believe it.

Nessel said the data center's electric costs will be aggregated over the entire 20-year period of the contract, so there will be years when customers do, in fact, have to subsidize Google's data center.

"That simply swings the doors wide open for customer cost-shifting, and that’s how the data center crash-lands onto your electric bill,” Nessel said in a statement.

Nessel said the costs and benefits from the contract should be accounted for and reconciled annually to protect ratepayers.

The MPSC declined comment on Nessel's petition filing. Google did not respond to a request for comment.

Tracy Samilton covers energy and transportation, including the auto industry and the business response to climate change for Michigan Public. She began her career at Michigan Public as an intern, where she was promptly “bitten by the radio bug,” and never recovered.
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