The Michigan Public Service Commission (MPSC) has approved contracts between DTE Electric Co. and Google LLC for a data center in Van Buren Township, Wayne County. This approval comes with strict conditions to protect other customers from incurring additional costs related to the project.
Key Details:
- Timeline: The data center is expected to start receiving electricity in December 2027, with maximum load anticipated by December 2028.
- Contracts: The approval includes a primary supply agreement (PSA) and a clean capacity accelerator agreement (CCAA) to ensure new clean energy resources are developed to power the center.
- Cost Protections: The MPSC emphasized that other DTE Electric customers will not bear any costs associated with the data center development. Specific provisions include:
- A 20-year contract length, in contrast to the usual 5 years.
- A minimum billing demand of 80%.
- An early termination payment that requires Google to cover costs for at least 15 years if it cancels the project.
- Credit and collateral requirements to mitigate financial risks.
Renewable Energy Commitment:
The CCAA mandates that Google fund the development of 1,600 megawatts of renewable energy and 480 megawatts of battery storage to support the data center.
Economic Impact:
DTE anticipates that the project will yield a $1.7 billion benefit, lowering costs for other customers over the contract’s lifespan. The MPSC maintains oversight on the contracts but has no jurisdiction over the data center’s location and related matters.
The review included contributions from several intervenors, including environmental organizations and the Michigan Department of Attorney General.
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