The Michigan Public Service Commission (MPSC) recently issued a provisional approval for a data center in Saline Township. DTE will provide electricity for the data center if it meets the conditions listed in the approval. The most significant condition is that DTE needs to explain how they will meet their clean energy targets as required by statute. Sierra Club has raised extensive concerns about whether DTE can meet their clean energy goals and whether the MPSC conditions are sufficient to address the problems with this proposed facility. As a result, Sierra Club has joined with Attorney General Dana Nessel in requesting a rehearing before the MPSC on the conditional approval of DTE data center contracts.
In 2023 the Michigan legislature passed clean energy legislation that requires utilities to provide 50% of their electricity from clean energy sources, such as wind and solar, a mere four years away. In 2035, utilities are to provide 60% of their electricity from renewable sources and by 2040, 100% from clean energy resources.
The Saline data center is projected to increase DTE electricity sales by 22%. DTE is also looking at adding other data centers to their customer base. Sales of EVs alone are expected to increase electricity demand by 13 to 29% by 2035. How much extra electricity would we need to switch every gas-powered car for an electric vehicle? | MIT Climate Portal. Electrifying homes will increase that demand even further.
The Saline data center alone will require 1.4 GW of electricity to operate. Oracle and Related Digital, the parent companies building the data center, will not provide any of the energy needed to operate the Saline data center. Instead, they will provide 1.4 GW of battery storage that DTE will charge using existing facilities during low demand times for use during high demand periods.
DTE is a for-profit company. They will use the less expensive way of producing electricity first. This is called a merit system. Wind and solar are at the top of the merit system because of their near zero marginal cost of operation. Approximately 15% of DTE's electricity is from wind and solar. Any demand above that comes from a large amount of fossil fuel. Fossil fuel will charge these new batteries well into the future. DTE has a lot of excess capacity by using fossil fuel-powered batteries. As DTE’s energy needs get closer to peak demand, the company will turn to the less efficient and more costly plants. The more fossil fuels are used, the longer it takes to meet clean energy goals and thus increases environmental damage.
The growth of clean energy is much slower than it needs to be. Many townships are using delay tactics to slow down the siting of wind and solar. How successful the tactics will be is unknown. Currently, there are five large clean energy development applications in the MPSC queue waiting for approval, with no time estimate when decisions will be made. Renewable Energy and Storage Facility Siting. Ed Rivet from the Michigan Conservative Energy Forum estimates there will be 10 more applications added to the queue in the next several months.
There are several things that you can do to help with this issue. Make sure your local township has an ordinance that addresses data centers. Attend township meetings and speak up about data centers during the public comment period.
Write letters to your state senator and representative and ask them to rescind the tax breaks for data centers. There will most likely be future legislation around data centers. Ask your legislators to support legislation that discourages the building of data centers. The main topic of Michigan Chapter’s Spring Lobby Day will be data centers. Look for future announcements for this annual event and please attend.
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