Why Michigan’s loudest hearing on the Saline Township data center might still end in silence

Despite overwhelming opposition, a data center in Saline Township could still get fast-tracked with no sworn testimony, no fact-finding, and no real public accountability.

MICHIGAN—By 6:30 p.m. Wednesday, about 90 people had logged into the Michigan Public Service Commission’s virtual hearing on DTE Energy’s plans to power a massive new data center in Saline Township. By 7 p.m., the number of attendees had exploded past 850. 

And for the next two hours, several dozen Michiganders took over the Microsoft Teams call with a level of engagement that’s rarely ever seen at state regulatory meetings. 

Residents, engineers, farmers, environmental advocates, union workers, and a long line of deeply frustrated DTE customers waited—some for more than an hour—to make their case. 

At least 40 people eventually got the microphone before the commission ended the meeting at 9 p.m. with more than 100 people still waiting to speak. The vast majority of them opposed the data center. Only those with a financial stake in the project spoke in favor.

Not that any of this guarantees their concerns will matter.

What’s happening?

In October, Gov. Gretchen Whitmer’s office announced plans from Open AI and Related Digital to build a massive data center across 575 acres of farmland in Saline Township near Ann Arbor.

It’s designed to help support artificial intelligence systems. 

The $7 billion project, dubbed “Stargate,” has been lauded as the largest economic development project in Michigan history. And Whitmer’s office says it “will create more than 2,500 union construction jobs, more than 450 jobs on site, and 1,500 more across the country.”

Construction is slated to begin next year. But DTE has already had crews on the ground preparing for the 1.4 gigawatts of electricity it plans to pump into the facility once it’s operational—a load equivalent to powering roughly 1 million Michigan homes. 

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Last month, DTE filed an “ex parte” application with the Michigan Public Service Commission, asking regulators to approve the electrical hookup with no formal hearings, no sworn testimony, no opportunities for cross-examination or discovery, and no real accountability from the public. 

And that expedited process isn’t sitting well with Michiganders concerned about electrical demand, water use, and the potential for higher electricity bills to accommodate the project. 

Wednesday’s session—the public comment period—was the only formal chance for Michiganders to weigh in before the Commission is expected to vote on Friday.

Who supports the project?

It’s a short list. 

At Wednesday’s hearing, the only speakers backing DTE’s fast-track request were from the Chaldean American Chamber of Commerce, the Michigan Chamber of Commerce, and a handful of construction-related unions whose members would benefit from building the facility. 

DTE, Open AI, and Related Digital naturally support the project—and have signaled that if the application isn’t approved this week, the deal could be pulled entirely. Whitmer also released a statement before the hearing, urging the Commission to quickly approve DTE’s application.

Who opposes the project?

Just about everybody else. 

Over the last month, local opposition has grown fast and loud, with protests fueled in part by concerns about the project’s massive scale, its staggering demand for electricity and the possibility that ordinary Michigan ratepayers could end up paying for grid upgrades required to serve the data center. Opponents of the project have also raised concerns about the strain the facility could put on local water systems, Michigan’s electrical grid, and the environment. 

Saline Township officials initially rejected the development outright, and the plan is only moving forward because developers sued the township and reached a settlement agreement that cleared the way for construction.

Attorney General Dana Nessel has billed the project as a “rush job” and urged the Commission to reject DTE’s ex parte request, pushing instead for a “contested case”—a more rigorous process that would require evidence, discovery, sworn expert testimony, and full public scrutiny. 

“We must demand a full, formal contested case,” Nessel said in a statement, arguing that only a deeper review would ensure the commission—and the public—can fairly assess the risks. 

Nearly two dozen state lawmakers have also signed a letter calling for a contested case. Several environmental groups also oppose the project. 

On Wednesday, Bryan Smigielski, campaign organizer for the Sierra Club, told the Commission that fast-tracking the project would be “reckless” and a “betrayal of the public trust.” 

Josh Fraley, who lives near the project in Saline Township, also raised concerns about expediting the electrical hookups, arguing that it’s important for Michiganders to be protected from rate hikes by “iron-clad legal language” instead of simply taking DTE at their word. 

“Whether or not it’s granted, it’s important that customers stay protected,” he said. 

Whitmer has attempted to ease those fears, insisting the project will require no additional power generation and rely on a closed-loop cooling system that won’t draw from the Great Lakes. DTE has also said the data center will absorb all new costs necessary to support its energy needs. 

A proposed 19-year contract with DTE reportedly calls for an Oracle subsidiary—Green Chili Ventures LLC—to pay at least 80% of its contracted power even if it uses less, and to cover 10 years of service even if the facility shuts down early. But the publicly available version of the contract is heavily redacted, leaving major financial details hidden from the public.

What’s next?

The state Public Service Commission is scheduled to vote on DTE’s ex parte application during its next meeting on Friday. If commissioners decline to open a contested case for further review, opponents could appeal the decision to the Michigan Court of Appeals, Bridge Michigan reports. 

With multiple data centers now being explored in several communities across the state, this decision from the Commission—because of its size, secrecy, and potential long-term impact—could set the tone for how future data center deals are reviewed in Michigan.

READ MORE: Nessel demands scrutiny of DTE data center deal in Saline Township

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