Michigan residents push back on $6.4bn datacenter energy bill

Michigan utility customers face a potential $6.4 billion cost increase as DTE Energy seeks approval to build two new gas plants to meet surging datacenter demand. The proposal, which aims to double the electric grid capacity in southeast Michigan over the next two decades, has drawn sharp criticism from residents and advocates who argue that residential ratepayers are unfairly subsidizing the energy needs of major technology firms.

DTE, the state's largest energy provider, has already contracted with Google and Oracle to supply 2.4 gigawatts of electricity to hyperscale datacenters and expects to announce additional contracts by year's end. The utility plans to develop 2.1 gigawatts of gas generation in counties outside metro Detroit by 2032, a significant jump from previous long-term forecasts that anticipated roughly 940 megawatts of gas capacity.

Critics, including former state representative Yousef Rabhi, describe the plan as deeply unjust, noting that households struggling with basic costs would effectively pay for the infrastructure serving some of the world's wealthiest companies. The Michigan Public Service Commission is expected to issue a preliminary decision on the plan within 300 days, while consumer groups question whether the expansion will derail the state's 2040 renewable energy targets.

Read the full story at theguardian.com.