SALINE TOWNSHIP, Mich. (Michigan News Source) – Washtenaw County may see a data center pop up soon after the Michigan Public Service Commission (MPSC) approved contracts between DTE Energy Co. and a subsidiary of Oracle Corp without other affected parties being allowed to weigh in.

The approval by the three-member board moves the proposed project one step closer to the building of the data center in Saline Township. Data centers house computer servers and networking equipment used to store, process, and distribute digital information. Opponents of the project made their disapproval known after commissioners voted on Thursday.  However, commissioners tried to make the deal palatable by including conditions they say protects ratepayers from cost increases associated with the data center.

Contingency terms.

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The MPSC released a statement explaining the protections. “The Commission conditioned approval on requiring DTE Electric to be responsible for any costs to serve the 1,383- megawatt (MW) data center in Saline Township that it is unable to recover from Green Chile Ventures LLC, a subsidiary of the tech company Oracle Corp.”

In addition, MPSC Chair Dan Scripps said, “These protections will ensure that Michigan is able to reap the benefits of adding a significant new energy user to the grid while keeping any related costs off the utility bills of other customers.”

AG Nessel: “Utilities and MPSC cut corners.”

Michigan Attorney General Dana Nessel, who has been outspoken about the proposed project since it emerged in October, blasted the proceedings. “Our regulatory system only works if the process is done properly and transparently. When the utilities and MPSC cut corners, Michigan ratepayers are left unprotected.” Nessel continued,  “My office will continue to stand with ratepayers, demand transparency from utilities, and push for a regulatory process that puts Michiganders, not corporations, first.”

DTE will enter a minimum 19-year contract as opposed to the standard five years. In addition, the data center must pay at least 80% of its bill and cover 10 years of charges if it shuts down early.

Meanwhile, data center discussions are taking place in other communities around the state, including Southfield, Howell Township, and Lowell.