KEY POINTS
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Michigan regulators approved special DTE Electric contracts for a Google data center in Van Buren Township, Wayne County.
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Google will pay for up to 1,600 megawatts of renewable generation and 480 MW of battery storage tied to the project.
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The data center is expected to begin taking service in December 2027 and reach maximum load by December 2028.
Michigan regulators approved a long-term electricity arrangement for a Google data center that would require new renewable generation and battery storage.
The Michigan Public Service Commission approved special contracts between DTE Electric and Google on Oct. 1 for a data center in Van Buren Township in Wayne County.
The decision covers a primary supply agreement for electric service and a clean-capacity agreement for new energy resources and storage.
How Will Michigan Supply Power to Google’s Data Center?
Under the approved arrangement, Google would pay for DTE Electric to develop up to 1,600 megawatts of renewable-energy facilities and 480 MW of battery storage.
As a rule of thumb, one megawatt (MW) equals 1 million watts and can generally power about 800 to 1,000 homes, while one gigawatt (GW) equals 1 billion watts, or roughly enough electricity to supply 800,000 to 1 million homes.
DTE would develop, own and operate those resources, while the commission’s order requires protections intended to prevent other utility customers from carrying the project’s costs.
The data center is expected to begin taking service in December 2027 and reach maximum load by December 2028.
DTE said the arrangement could produce a $1.7 billion benefit over the 20-year contract life by having Google pay fixed costs associated with resources that may also benefit the broader grid.
Power infrastructure has become a critical component in the national data center buildout. In late September, ConstructConnect reported that year-to-date, Power Infrastructure starts are 119.9% above the comparable period in 2025, largely powered by the $13 billion Catarus Commonwealth LNG project that broke ground in August.
A Broader Construction Footprint
The commission announcement does not provide a complete list of facilities or identify the contractors responsible for them, but it makes clear that the power supply will require substantial new assets.
While the visible data-center campus may be the most recognizable element, the supporting construction program could include a host of related needs.
These may include renewable-energy facilities, battery installations, substations, transmission improvements, interconnection work and related civil infrastructure.
How Does the Deal Protect Other Utility Customers?
Data center development, and the energy required for their operation have come under increased scrutiny and pushback in communities and by some elected officials.
The Michigan order highlights the financial and regulatory questions surrounding large-load development.
According to the Michigan Public Service Commission:
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The approved primary supply agreement runs for 20 years, compared with five-year contracts normally required under DTE’s large-load rate.
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Google must pay a minimum of 80% of contracted electric use.
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An early-termination provision requires Google to cover at least 15 years of minimum monthly charges.
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Credit and collateral requirements to cover costs if Google stops operating the data center sooner than planned.
The provisions reduce the risk of stranded infrastructure costs. In practical terms, they give the utility confidence that the investments needed to serve the data center will be recovered even if the facility’s demand is lower than expected or the project does not operate for its full planned life.
The arrangement also reflects a division of responsibility between developers and utilities.
Google is paying for the new renewable and storage resources, while DTE is responsible for developing, owning and operating them.
What the Approval Does Not Decide
The commission defined the limits of its action. Its authority in the case covered the terms and conditions of utility service and the protections for other DTE customers. It did not decide whether or where the data center may locate.
The public announcement does not identify the data-center developer or general contractor, disclose the facility’s square footage, provide a building schedule or specify where the renewable and storage projects will be built.
It also does not establish whether the campus has received all local approvals needed for construction.
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