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Michigan AG Challenges Secret Approval of 1.4-GW Data Center Energy Contracts
MI
Data Centers · Utility Regulation
April 17, 2026
Source: Targeted News Service, States News Service
Attorney General Dana Nessel filed a claim of appeal in the Michigan Court of Appeals challenging the Michigan Public Service Commission's December 2025 “conditional approval” of two special contracts between DTE Energy and Green Chile Ventures for a hyperscale AI data center in Washtenaw County. The 1.4-gigawatt facility — enough power for more than 1 million homes — was approved through what Nessel calls an unlawful ex parte process. The MPSC denied every request from the AG's office to hold a contested case hearing, which would have allowed review of the heavily redacted contracts, verification of DTE's claims that existing ratepayers would not see cost increases, and examination of collateral and exit fee protections in case the data center fails to purchase projected electricity or leaves the state.
Nessel stated this appeal “is not just about this case, but every future data center case that comes before the Commission.” The MPSC also denied the AG's request to review six additional redacted contracts for three battery storage facilities meant to support the data center project.
Community Takeaway
This case could establish binding precedent on whether public utility commissions can approve large-load data center contracts without public review. The core question — whether a contested case hearing is legally required for contracts of this scale — applies everywhere utilities are negotiating special deals with data center operators. Communities should ask whether their state's public utility commission is approving large-load contracts behind closed doors, and whether their state AG has authority to intervene. Verify how rate case procedures work in your state before assuming a similar challenge would apply.
What You Can Do
- Follow AG Nessel’s appeal
- Michigan Attorney General Dana Nessel has filed a claim of appeal in the Michigan Court of Appeals. This case will set precedent for all future data center energy contracts in the state. Follow updates from the Michigan AG’s office.
- Contact the Michigan Public Service Commission
- The MPSC approved DTE Energy’s special contracts without a contested case hearing. Michigan residents can file comments demanding public hearings on future large-load contracts.
- Check your state’s process
- Ask whether your state’s public utility commission is approving large-load data center contracts without public review, and whether your state attorney general has authority to intervene in utility commission decisions.
Source: Targeted News Service, States News Service, April 17, 2026.