Michigan AG Appeals Approval of DTE's Saline Data Center Contracts

Nessel seeks contested case hearing to review ratepayer protections and potential rate increases.

Apr. 20, 2026 at 12:36am

Got story updates? Submit your updates here. ›

A serene, cinematic painting of an empty office space in a downtown high-rise, with warm sunlight streaming through the windows and deep shadows casting a pensive mood, conceptually representing the political tensions surrounding the approval of data center contracts.The legal battle over data center contracts exposes the complex interplay between state regulators, utility companies, and consumer advocates.Saline Today

Michigan Attorney General Dana Nessel is appealing the Michigan Public Service Commission's approval of two DTE contracts for a 1.4 gigawatt AI data center in Saline, Michigan. Nessel is requesting a pullback on the approval to allow for a contested case hearing to review the contracts and verify that DTE would not increase electric rates to existing customers.

Why it matters

The data center project has received pushback from local residents, and Nessel's office wants to ensure there are proper ratepayer protections in place against potential rate increases or other liabilities should the data center fail to meet its electricity commitments or go bankrupt.

The details

The contracts, approved in December 2025, would service the large data center. Nessel says her office requested a contested case hearing a few months before the MPSC approval, but that it has never been publicly verified whether the contracts would not impose an increase on customers. The MPSC approval came with an agreement that DTE would be responsible for any costs and would interrupt the data center's load before interrupting services to residents and businesses in an emergency.

  • The contracts were approved by the MPSC in December 2025.
  • Nessel's office requested a contested case hearing a few months before the MPSC approval.

The players

Dana Nessel

The Attorney General of Michigan who is appealing the MPSC's approval of the DTE contracts.

Michigan Public Service Commission

The state regulatory agency that approved the DTE contracts for the Saline data center.

DTE

The utility company that secured the 19-year contracts to service the 1.4 gigawatt AI data center in Saline.

Got photos? Submit your photos here. ›

What they’re saying

“I've sought a contested case review of these data center contracts since they were first filed in October, and the law requires one. The Commission ignored our request. My office petitioned for rehearing, specifically challenging their application of ex parte process, and the Commission again ignored our plea. So now our only choice, to protect the state and utility customers from the worst hazards and liabilities these contracts pose, is to challenge the Commission's unlawful approval of these secret data center contracts in the courts.”

— Dana Nessel, Michigan Attorney General

“The Commission's conditional approval of these contracts included some of the strongest consumer protections in the country and is consistent with literally decades of applicable precedent. We look forward to vigorously defending these conditional approvals in order to realize the projected $300 million in affordability benefits for customers.”

— Michigan Public Service Commission

What’s next

The judge will hear Nessel's appeal and decide whether to allow a contested case hearing to review the DTE contracts.

The takeaway

This case highlights the ongoing tensions between state regulators, utility companies, and consumer advocates over the approval of large data center projects and the need to balance economic development with ratepayer protections.