① Michigan regulators unanimously approved DTE Energy as Oracle's... and OpenAI's data center The project will provide power support; however, there was much opposition at the hearing, with concerns about the excessive power consumption of the data center and potential environmental pollution; DTE and Oracle stated that it will bring economic benefits and tax revenue, and ensure stable electricity prices.
Michigan regulators unanimously approved a utility on Thursday (December 18). The company DTE Energy made a request to provide power support for a large data center project planned by Oracle and OpenAI.
As a result, Oracle shares rose more than 5% in pre-market trading.
According to documents previously filed by DTE, the company has entered into a power supply agreement with Oracle to support a multi-billion dollar, 1.4-gigawatt AI infrastructure in Salin, state.
The agreement stipulates that Oracle will bear the majority of the project's costs, including minimum monthly fees and termination fees. Sources familiar with the matter previously revealed that the developer is financing the project through a debt agreement worth approximately $14 billion.
DTE had previously applied to regulators for expedited approval of the agreement. According to the latest developments, Michigan regulators have stated that the proposed contract between the utility and the technology company does indeed protect the interests of the power grid and the general public.
"These agreements will bring net financial benefits to DTE's other customers," noted Dan Scripps, president of the Michigan Utilities Commission.
Opposition
The rapid expansion of data centers in the United States is reshaping the energy industry, and at the same time, controversy surrounding these infrastructures is growing, mainly revolving around their staggering power consumption.
This conflict was clearly also evident at the hearing held in Michigan on Thursday.
Before the vote, Scripps was repeatedly interrupted by data center opponents. At the hearing, a group of opponents stood at the podium to express their concerns, such as potential air and river pollution in their communities.
Local resident Beth Foley said, "This is a succumb to political pressure at the expense of the residents you are serving. I drive through this project area every day, and it looks like an apocalyptic scene."
In response, a DTE representative stated that the utility has a responsibility to serve all its customers (including data centers) within its jurisdiction, and "we acknowledge that there are various opinions and emotions surrounding this decision."
Oracle stated that the data center will bring economic benefits and tax revenue to schools and towns in Michigan, and that regulatory approval ensures that Michigan customers are protected from rising electricity prices.
After the meeting, Citigroup The report points out that the regulatory approval process was indeed fraught with controversy. Its analysts wrote in a briefing on Thursday that it is certain that this hyperscale cloud computing... The giant (Oracle) will be the first to be powered down in a system emergency, "which should help avoid a potential scenario where 'Oracle data centers are brightly lit while the public experiences a power outage'."
(Article source: CLS)
