DTE Energy
Investor-OwnedService Area: Southeast Michigan & Thumb region
Customers: 2,300,000
Current Capacity: ~11 GW
Data Center Pipeline: ~7 GW requested
Key Projects:
- Oracle/OpenAI Stargate (1.4 GW)
🏞 State Resources
Michigan
Ground zero for America's AI infrastructure debate
Michigan has emerged as a major battleground for data center development, with 11+ large-scale projects proposed since 2024. The state's combination of available land, grid infrastructure, and new tax incentives has attracted billions in proposed investment—and significant community opposition.
View Michigan Policy Profile → 15
Documented Projects
$11.5B
Announced Investment
7+ GW
Power Pipeline
11
Active Proposals
Featured in Chapter 9 of
This Is Server CountryMichigan's entry into data center incentives and the Saline Township story are detailed in "The Incentives" chapter.
Understanding the Grid
To understand data center debates, you need to understand how electricity gets to your home. The U.S. power grid operates in layers, from federal oversight down to your local utility. Here's how it works in Michigan:
Federal
FERC
Federal Energy Regulatory Commission
Oversees interstate transmission of electricity, natural gas, and oil. Sets wholesale electricity market rules. Approves transmission rates and major infrastructure projects that cross state lines.
Regional
MISO (& PJM)
Midcontinent Independent System Operator
Operates the regional grid across 15 states including most of Michigan. Manages wholesale electricity markets, balances supply and demand in real-time, and coordinates the interconnection queue for new generation and large loads like data centers.
Note: Southwest Michigan (St. Joseph, Cass, and Berrien counties served by Indiana Michigan Power) operates within PJM Interconnection, not MISO.
State
MPSC
Michigan Public Service Commission
Regulates Michigan's investor-owned utilities, sets retail electricity rates, approves utility contracts, and protects consumers. For data centers, the MPSC has become the key decision-maker on major power supply agreements.
Local
Utilities
IOUs, Municipals, and Cooperatives
The companies that actually deliver electricity to your home or business. Michigan has investor-owned utilities (like DTE and Consumers Energy), municipal utilities (owned by cities), and rural electric cooperatives. Each type operates under different regulatory frameworks.
Why This Matters
When a data center proposes to use 500 MW of power (enough for 400,000 homes), it must navigate all these levels. The regional grid operator (MISO) must confirm there's enough capacity. The state regulator (MPSC) must approve contracts that protect other ratepayers. And the utility must actually build or procure the generation.
The Grid Is Interconnected
Regional grid operators don't work in isolation. MISO connects to PJM (to the east), SPP (to the southwest), and other regions through transmission "seams." The Eastern Interconnection links grids from the Rockies to the Atlantic coast—only Texas (ERCOT) operates largely independently.
This means a heat wave in the Southeast, a coal plant retirement in Indiana, or a new data center cluster in Ohio can all affect electricity prices, reliability, and available capacity in Michigan. When grid planners assess whether Michigan can support new data center load, they must consider demand growth across the entire interconnected system.
Grid Operator: MISO
MISO coordinates the reliable delivery of electricity across a region spanning from Michigan to Montana, manages wholesale electricity markets, and oversees the interconnection queue for new generation and large loads.
Midcontinent Independent System Operator
15
States Covered
42M
People Served
72,000
Miles of Transmission
Data Center Implications
- • Interconnection Queue: All new generation and large loads must go through MISO's queue process
- • Queue Backlog: Current wait times of 12-24+ months for interconnection studies
- • Load Growth: Data center demand is driving unprecedented load forecasts
- • Reliability Concerns: NERC has flagged data center buildout speed as near-term reliability challenge
Note
Southwest Michigan (St. Joseph, Cass, and Berrien counties) is served by Indiana Michigan Power, which operates in the PJM Interconnection rather than MISO.
State Regulators
State agencies play a critical role in data center development. The MPSC regulates utilities and approves contracts, while other agencies handle environmental permits, economic incentives, and more.
Michigan Public Service Commission (MPSC)
The MPSC regulates Michigan's investor-owned electric and natural gas utilities, setting rates and approving service contracts. For data centers, the MPSC has become the key decision-maker on utility contracts and ratepayer protections.
Key Data Center Decisions
- U-21859: Consumers Energy data center tariff (Nov 2025)
- U-21990: DTE Stargate contract (1.4 GW contract approval (Dec 2025))
Recent Actions
- • First-in-state data center tariff provisions
- • Ratepayer protection requirements
- • Clean energy compliance tracking
EGLE
Michigan Department of Environment, Great Lakes, and Energy
Environmental permits and compliance
www.michigan.govegle →MEDC
Michigan Economic Development Corporation
Economic development and tax incentives
www.michiganbusiness.org →Who Powers Michigan
Michigan's electricity comes from three types of utilities: investor-owned utilities (IOUs) that serve most of the state's population, municipal utilities owned by cities and villages, and rural electric cooperatives. Each type operates under different regulations and governance structures.
Investor-Owned Utilities
Regulated by the MPSC. These for-profit companies serve 4,292,000+ customers across Michigan.
Consumers Energy
Investor-OwnedService Area: Lower Peninsula (outside Detroit)
Customers: 1,800,000
Data Center Pipeline: 15 GW potential demand
Key Policies:
- First Michigan data center tariff
Coal-Free Target: 2025
Upper Peninsula Power Company (UPPCO)
Investor-OwnedA subsidiary of Axium Infrastructure
Service Area: Upper Peninsula
Customers: 52,000
Indiana Michigan Power (I&M)
Investor-OwnedA subsidiary of American Electric Power (AEP)
Service Area: Southwest Michigan (St. Joseph, Cass, Berrien counties)
Customers: 140,000
Grid Operator: PJM Interconnection (not MISO)
Transmission
Transmission utilities move high-voltage electricity across long distances. They don't serve retail customers directly but are essential infrastructure for data center growth.
ITC Michigan
TransmissionA subsidiary of ITC Holdings (Fortis Inc.)
Service Area: Statewide transmission network
Network: 9,100+ circuit miles of high-voltage transmission
Key Projects:
- Oneida–Sabine Lake 345kV line
- Nelson Road–Oneida 345kV line
- Helix–Hiple 345kV line
- MISO LRTP Tranche 2.1 projects
Municipal Utilities
Michigan has 40+ municipal electric utilities, locally owned and operated by cities and villages. These utilities are not regulated by the MPSC and make their own decisions about data center service.
Lansing BWL
Largest municipal utility in Michigan. Partner on Deep Green DG06 data center project, providing waste heat to downtown district heating.
- Customers: 100,000
- Location: Ingham County
Data Center: Deep Green DG06 (24 MW)
www.lbwl.com →Holland BPW
Second-largest municipal utility. Serves Holland area in Ottawa County with strong industrial base.
- Customers: 28,000
- Location: Ottawa County
Grand Haven BLP
Municipal utility serving Grand Haven with wind and gas generation resources.
- Customers: 12,000
- Location: Ottawa County
Marquette BLP
Upper Peninsula municipal utility with hydroelectric generation.
- Customers: 12,000
- Location: Marquette County
Traverse City LP
Municipal utility in northern Lower Peninsula serving Traverse City area.
- Customers: 14,000
- Location: Grand Traverse County
Bay City ELP
Municipal utility serving Bay City in the Saginaw Bay region.
- Customers: 18,000
- Location: Bay County
Electric Cooperatives
Michigan has 10 distribution cooperatives serving rural areas, plus one generation and transmission cooperative. These member-owned utilities are not MPSC-regulated and collectively serve about 500,000 Michigan residents.
Wolverine Power Supply Cooperative
Generation and transmission cooperative that provides wholesale power to five distribution cooperatives. Wolverine has secured federal funding to purchase nuclear power from the reopened Palisades Nuclear Plant.
- • Members: Great Lakes Energy, Cherryland Electric, HomeWorks Tri-County, Presque Isle Electric & Gas, Midwest Energy
- • Key Projects: Palisades Nuclear Plant power purchase agreement; Federal grants for nuclear power acquisition
- • Headquarters: Cadillac, MI
Distribution Cooperatives
Great Lakes Energy
Largest electric cooperative in Michigan and second-largest in U.S. by miles of line.
- Members: 126,000+
- Service Area: 26 counties (western/northern MI)
Cherryland Electric
Serves northwest Lower Peninsula including Grand Traverse area.
- Members: 35,000+
- Service Area: Grand Traverse, Leelanau, Benzie, Kalkaska, Wexford
Midwest Energy
Serves southwest Michigan and parts of northern Indiana.
- Members: 37,000+
- Service Area: Cass, St. Joseph, Kalamazoo areas
HomeWorks Tri-County
Serves mid-Michigan including Clinton, Gratiot, and Montcalm counties.
- Members: 34,000+
- Service Area: Clinton, Gratiot, and Montcalm counties
Thumb Electric
Serves Michigan's Thumb region (Huron, Sanilac, Tuscola counties).
- Members: 12,000+
- Service Area: Huron, Sanilac, Tuscola counties (Thumb region)
Presque Isle Electric & Gas
Serves northeast Lower Peninsula including Alpena, Presque Isle, Montmorency.
- Members: 24,000+
- Service Area: Alpena, Presque Isle, Montmorency counties
Michigan's Power Mix
Michigan's electricity generation remains heavily dependent on fossil fuels, though the state has set ambitious clean energy targets. The gap between current generation and future targets is a key tension point for data center development.
Current Generation Mix
Natural Gas
39%
Coal
24%
Nuclear
23%
Wind
10%
Solar
2.3%
Other renewables
1.5%
Source: EIA, Low Carbon Power (2024-2025)
Clean Energy Targets
25
2025
Consumers coal-free
30
2030
50% renewable
35
2035
60% renewable / 80% clean
40
2040
100% clean energy
Based on Public Acts 229, 231, 233, 234, 235 of 2023
The Data Center Dilemma
Michigan's 2023 clean energy laws include an "offramp" provision allowing utilities to continue fossil fuel generation if renewable sources cannot handle grid load. Critics argue that adding 7+ GW of data center demand could trigger this offramp, effectively derailing the state's climate goals. The MPSC has stated clean energy compliance will be addressed in separate proceedings.
Policy & Regulation
Michigan has enacted significant legislation affecting data center development, from tax incentives to clean energy requirements. Understanding these policies is essential for following the debate.
Data Center Tax Incentives
Senate Bill 237 / House Bill 4906 | Signed 2024-12-30
Senate Bill 237 (Public Act 181 of 2024), signed December 30, 2024, exempts qualifying data centers from sales and use tax on equipment purchases through December 31, 2050 (extended to 2065 for brownfield sites). A companion bill, House Bill 4906 (Public Act 207 of 2024), amended the General Sales Tax Act.
Exemption Period
Through 2050 (standard) or 2065 (brownfield/former power plant sites)
Job Requirement
Minimum 30 high-wage jobs
Clean Energy
Must procure 90% clean energy within 6 years
Green Building
Certification required within 3 years
Est. Revenue Impact
$42.5M+ foregone through 2062
SB 237's passage and implications are examined in detail in Chapter 9: The Incentives.
Clean Energy & Renewable Standards
Public Act 235 of 2023, Public Act 229 of 2023, Public Act 231 of 2023, Public Act 233 of 2023, Public Act 234 of 2023 | Signed 2023-11
Public Act 235 of 2023 (part of the Clean Energy Future package) and related acts 229, 231, 233, and 234, signed by Governor Whitmer in November 2023.
Targets
- • Renewable standard: 50% by 2030, 60% by 2035
- • Clean energy standard: 80% by 2035, 100% by 2040
Key Provisions
- • Energy storage: 2,500 MW required by 2029
- • Clean Energy Plans: Required from utilities starting 2028
- • "Offramp" Provision: Allows fossil fuel generation if renewable sources cannot meet demand
Critics argue that adding 7+ GW of data center demand could trigger the offramp provision, allowing utilities to continue fossil fuel generation and effectively derailing Michigan's climate goals. The clean energy requirements in SB 237's tax exemption may be met through REC purchases rather than physical renewable generation.
MPSC Data Center Proceedings
APPROVED U-21859: Consumers Energy Data Center Tariff
2025-11 First-in-state data center tariff establishing rules for customers with 100+ MW minimum service threshold. Includes 15-year minimum contract term, ratepayer protection provisions, and prohibitions on cost-shifting.
CONDITIONAL U-21990: DTE Stargate Contract
2025-12 MPSC conditionally approved 19-year, 1.4 GW power supply agreement for Saline Township (Oracle/OpenAI Stargate) with mandatory ratepayer protections. AG Dana Nessel filed petition for rehearing in January 2026.
Pending Legislation
Senate Bills 761-763: Data Center Environmental Regulation 2025-12
Three bills introduced by Democratic senators to regulate data center environmental impacts.
- • Limit water withdrawals to 2 million gallons/day maximum
- • Protect taxpayers from paying for water infrastructure
- • Require MPSC annual reports on data center water/energy use
Bipartisan Repeal Bill: Tax Incentive Repeal 2025-12
Bipartisan bill introduced by Rep. Dylan Wegela (D) and Rep. Jim DeSana (R) to repeal data center tax incentives enacted in late 2024.
Active Data Center Projects
Michigan has 8 documented data center projects in various stages of development. Here are the major active projects:
approved
Oracle/OpenAI Stargate Campus
Saline Township • Washtenaw County
Part of OpenAI's Stargate initiative. 575-acre campus with 2.2M sq ft across five buildings. Called "the largest economic project in Michigan history" by Governor Whitmer. MPSC approved DTE power contracts in December 2025 with ratepayer protections.
Sponsors
Oracle OpenAI Related Digital
Key Details
- 2.2M sq ft across five buildings
- Called "the largest economic project in Michigan history"
- MPSC approved DTE power contracts in December 2025
- Ratepayer protections included
Construction 2026, operations TBD
on hold
Meta Howell Township Campus
Howell Township • Livingston County
Hyperscale campus backed by Meta Platforms. Planning Commission voted unanimously to recommend denial after 7-hour meeting with hundreds of public comments. Township adopted 6-month moratorium in November 2025.
Sponsors
Meta Stantec Randee LLC
Key Details
- Planning Commission voted unanimously to recommend denial
- 7-hour meeting with hundreds of public comments
- 6-month moratorium adopted in November 2025
On hold pending moratorium
planned
Microsoft Gaines Township
Gaines Township • Kent County
Microsoft purchased 316 acres from Steelcase Inc., less than 5 miles from Switch's data center campus. No site plan submitted yet; project scope and power requirements unknown.
Sponsors
Microsoft
Key Details
- Land acquired from Steelcase Inc.
- Less than 5 miles from Switch campus
- No site plan submitted yet
- Project scope and power requirements unknown
Land acquired, planning phase
operational
Switch SUPERNAP Grand Rapids
Gaines Township • Kent County
Largest data center campus in eastern U.S. Located at former Steelcase pyramid campus. Over 1M sq ft built out with continuous expansion planned for 10+ years. Part of $5B financing plan.
Sponsors
Switch
Key Details
- Largest data center campus in eastern U.S.
- Former Steelcase pyramid campus
- Over 1M sq ft built out
- Continuous expansion planned for 10+ years
- Part of $5B financing plan
Operational, expanding
announced
U-M / Los Alamos National Lab
Ypsilanti Township • Washtenaw County
National security and AI research facility. Received $100M grant from MEDC. Faces significant local opposition over environmental, health, and safety concerns.
Sponsors
University of Michigan Los Alamos National Laboratory
Key Details
- National security and AI research facility
- Received $100M grant from MEDC
- Faces significant local opposition
- Environmental, health, and safety concerns
Construction 2026, completion 2030
referendum
Form8tion Augusta Township
Augusta Township • Washtenaw County
Township Board approved rezoning in July 2025, but residents collected 957 signatures to trigger a 2026 ballot referendum. Project would use 1M gallons of water per day.
Sponsors
Thor Equities Form8tion
Key Details
- Rezoning approved July 2025
- 957 signatures collected for ballot referendum
- 1M gallons of water per day usage
- 2026 ballot vote pending
Pending 2026 ballot vote
expanding
Hyperscale Data Michigan Campus
Dowagiac • Cass County
Converting former manufacturing facility from Bitcoin mining to AI/HPC infrastructure. Currently 30 MW, expanding to 70 MW by 2027, full 340 MW by 2029. Partnership with NVIDIA for Blackwell AI infrastructure.
Sponsors
Hyperscale Data Inc.
Key Details
- Converting from Bitcoin mining to AI/HPC
- Currently 30 MW
- Expanding to 70 MW by 2027
- Full 340 MW by 2029
- Partnership with NVIDIA for Blackwell AI infrastructure
Operational, expanding
announced
Deep Green Lansing (DG06)
Lansing • Ingham County
Deep Green's first U.S. facility. Ultra-efficient design (PUE <1.17) with waste heat recycled into Lansing's district heating network, supplying up to 25% of downtown heating demand.
Sponsors
Deep Green Lansing BWL
Key Details
- Deep Green's first U.S. facility
- Ultra-efficient design (PUE <1.17)
- Waste heat recycled into Lansing's district heating network
- Up to 25% of downtown heating demand
Construction March 2026, operational 2027
Other Notable Facilities
Operational
- • 123NET Southfield DC1 (20 MW)
- • US Signal Detroit Metro
- • Otava Mid-Michigan & Metro Detroit
- • 365 Data Centers Detroit (DT1)
Canceled/Withdrawn
- • Kalkaska County (Rocklocker) – Kalkaska County
Transmission Infrastructure
Major transmission upgrades are underway in Michigan as part of MISO's Long Range Transmission Plan (LRTP). These projects will significantly expand the state's capacity to deliver power—critical infrastructure for proposed data center growth.
MISO LRTP Tranche 2.1 (Michigan)
350 mi
New 345kV Lines
70 mi
New 765kV Lines
$2.7B
Est. Investment
Part of MISO's largest-ever transmission portfolio approved in December 2024. Regional costs are shared across multiple states in the MISO footprint.
Oneida–Sabine Lake
345kV~50 miles of 345kV line from Oneida Substation (Eaton County) to new Sabine Lake Substation (Livingston County). Estimated cost: $272M + $255M upgrades + $73M for three new substations.
Status: Routing study phase. Community listening sessions ongoing.
Nelson Road–Oneida
345kV~40 miles of new 345kV line from Oneida Substation (Grand Ledge) to Nelson Road Substation (Carson City) through Ionia, Eaton, Clinton, and Gratiot counties.
Counties: Ionia, Eaton, Clinton, Gratiot
Helix–Hiple
345kV~55 miles of new 345kV line from northern Indiana border through Branch and Calhoun counties to new Helix Substation. First new interstate connection to Michigan's transmission system in nearly 50 years.
Counties: Branch, Calhoun
Additional Resources
Server Country Database & Book
Michigan Project Database
Our comprehensive database tracks 15 data center projects in Michigan, including detailed information on sponsors, power capacity, investment amounts, and current status.
View Michigan Data →This Is Server Country
The book tells the full story of Michigan's data center boom, including detailed coverage of SB 237, the Saline Township controversy, and DTE/Consumers Energy policy decisions.
Get the BookAdvocacy & Watchdog Groups
- Citizens Utility Board of Michigan
Consumer advocacy for utility customers
- Planet Detroit
Environmental journalism covering data center impacts
- Sierra Club Michigan
Clean energy and environmental advocacy
- Earthjustice
Environmental law organization active in MI tariff cases
- NRDC
Clean energy policy and data center guidelines analysis
News & Coverage
- Michigan Advance
State politics and policy coverage
- Crain's Detroit Business
Business and economic development news
- Bridge Michigan
Investigative journalism on Michigan issues
- Michigan Public
NPR station with data center coverage
Official Data & Maps
- MPSC Utility Service Area Map
Searchable by address, downloadable data
- MPSC E-Dockets
Regulatory case filings and documents
- EIA Michigan Energy Profile
Federal energy statistics
- Low Carbon Power Michigan
Generation mix data and trends
- MISO Interconnection Queue
Generation and load interconnection status
Research & Policy
- Citizens Research Council of Michigan
Nonpartisan public policy research
- Michigan Economic Development Corporation
State incentive programs and data center info
- Mackinac Center
Free-market policy research
- Michigan League of Conservation Voters
Environmental policy scorecard
Get Involved
Whether you're a resident, township official, or policymaker, your voice matters in shaping Michigan's data center future.