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Oracle and OpenAI in Michigan

Topic:

AI

Ticker:

Author:

DTE, ORCL

Leon Wilfan

Dec 20, 2025

Oracle and OpenAI secure Michigan approval to power their data center power

Michigan regulators unanimously approved a request by DTE Energy Co. (DTE) to supply electricity to a large data center project planned by Oracle Corp. (ORCL) and OpenAI in Saline Township.


The Michigan Public Service Commission voted Thursday after a lengthy and contentious public hearing. The decision allows DTE to move forward with contracts to power the multi-billion-dollar facility.


The data center is planned at 1.4 gigawatts of capacity. DTE sought expedited approval, citing protections built into agreements with the technology companies.


Commission members said the contracts safeguard the electric grid and existing customers. They said the arrangements prevent added financial risk for ratepayers.


Commission Chair Dan Scripps said the contracts show a net financial benefit for DTE’s other customers. He said the agreements require upfront collateral from the tech companies.


Scripps said the contracts do not assume the customers will remain financially solvent. He said those provisions protect the utility and the public.


The rapid expansion of data centers across the United States has reshaped the energy sector. Some facilities consume as much electricity as large cities.


Public opposition at the hearing reflected growing resistance to data center development in some regions. Several speakers raised concerns about environmental and community impacts.


Under the agreement, Oracle will pay the majority of project-related costs. Those include minimum monthly charges and a termination fee, according to a DTE filing.


The developers are helping finance the project with roughly $14 billion in debt. People familiar with the matter previously described the financing to Bloomberg News.


Shares of DTE and Oracle both rose slightly Thursday. Each stock finished the day just under 1% higher.


Citigroup Inc. said the approval process was controversial. Analysts noted the data center would be first to lose power during a system emergency.


OpenAI has said the Stargate campus in Saline Township is part of its planned 8 gigawatts of U.S. capacity. The company has announced more than $450 billion in investment with Stargate partners over three years.


DTE said it is obligated to serve all customers in its territory. The utility acknowledged a wide range of public views on the decision.


Oracle said the data center will bring economic benefits and tax revenue to local schools and the township. OpenAI did not immediately comment.


Several opponents interrupted the hearing. Some residents cited concerns about pollution and the scale of the development near their homes.

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