SALINE TOWNSHIP, Mich. (WXYZ) — It seems like every few weeks, a new data center is being proposed in metro Detroit — and one of the main concerns for those who live nearby is what would happen to the cost of energy.
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Well, one of the largest in the country is now planned for Saline Township.
I got a chance to talk to residents, a power systems expert, and Michigan’s attorney general about how they’re viewing this potentially historic project.
“Well, already, instead of starlight, construction light streams through my bedroom window," said Kathryn Haushalter, who lives in Saline Township.
That’s because OpenAI, Oracle, and developer Related Digital are in the early stages of building a 1.4 gigawatt data center in Saline Township, right on Kathryn Haushalter’s doorstep.
“It’s just all going to change. We’re afraid for our well water, our electric bill. It’s just not going to be the house we were hoping for," she said.
DTE would supply the needed electricity.
We’ve heard from DTE that they say it won’t raise the cost of utilities, but Kathryn is skeptical.
“We only have to look at other states and how it’s happened, and definitely the customers get saddled with the bill," she said.
Related Story: Saline Township residents raise concerns, anger about proposed data center
DTE wants the Michigan Public Services Commission to grant expedited ex parte approval of its special contracts with the AI data center. If granted, this would bypass any investigation or challenge of the terms of the contract by the public or the attorney general.
DTE has said the customer could terminate the deal if it’s not approved by December 5.
“It shouldn’t be rushed. If this is rushed, people are going to get hurt. Real families are going to get hurt by this," said Josh Lebaron.
Lebaron lives just 500 yards from the planned AI data center.
“I’d rather have a nuclear power plant than a data center. Cause at least that would add to the grid," he said.
He, too, feels like everything has happened quickly.
“I heard about it vaguely in August. I kind of assumed that the appropriate authorities were taking care of it. And then about two weeks ago, I realized that was not happening," he said. “I wanted to live out in the country in peace. I’ve spent the last 10 years remodeling my farmhouse. I’m almost done with it, and now they’re building a giant data center next to me.”
And he has an opinion on why Saline Township was chosen.
“Well, it’s a really small rural township with 2,000 people. So legally it’s going to be much easier to roll them over," said Lebaron.
Rabab Haider is an assistant professor of civil and environmental engineering at the University of Michigan. She tells me the electricity infrastructure in Michigan is around 100 years old, and changing weather patterns and new load growth mean it needs upgrading.
“It’s a really large cost. And when we think about the price increases that we’ve seen over the past couple of years in electricity prices, and residential electricity prices, for example, the vast majority of that actually comes from the upgrades that we’re running on our system today," said Haider.
Not AI, up to now.
"A big concern for these people, where these data centers are supposed to go in, is that their utility rates will increase, but they’ve been told that that’s not going to happen. Is it possible that an AI data center could go in and their utility rates do not increase?" I asked.
“I think it is possible," she said.
Haider said it depends on the contracts being signed.
“If a data center says that we’re going to build a megawatt facility and we’re going to make sure that we will be paying a certain minimum amount or we will consume a minimum amount of power, you have a steady revenue stream that you could basically offset costs of any potential infrastructure upgrades," she said. “You could also imagine that a data center company could choose to foot the bill for certain upgrades that would otherwise then get allocated to different rates payers. So then it really comes down to the way these contracts are designed and how rate approvals go through our utility and public service commissions.”
DTE issued a statement reaffirming the data center will not increase rates for existing customers, also saying in part: "Recently passed legislation by the state of Michigan ensures our customers will NOT subsidize data center rates. Furthermore, Michigan’s regulatory process allows a company to file for ex parte (or uncontested) approval of contracts if there is no cost-of-service increase to customers."
At the request of Michigan Attorney General Dana Nessel, the Michigan Public Service Commission agreed to hold a two-hour virtual public hearing on DTE’s ex parte application for approval of its special contracts to provide electricity to the 1.4 gigawatt data center in Saline Township on December 3.
She says right now, the public isn’t even able to read an unredacted copy of the contract.
I brought the concerns of Saline residents to Nessel directly.
"What should Michiganders expect and insist, when it comes to next steps?" I asked.
“Those feelings are absolutely legitimate. This does appear to be a rush job. It does appear as though the intention of the public service commission is to rubber-stamp whatever DTE wants… because I have no other explanation why they would not have a contested hearing unless they want to make sure that nobody knows exactly what it is that DTE is asking for," said Dana Nessel, Michigan's attorney general.
It’s a sentiment echoed by Kathryn Haushalter.
“I feel like it’s just a checklist of things that they have to do before they can just go ahead anyway and get what they want and put this data center here," she said.
I asked about where the public can make their voices heard, and was told the best place right now is on the MPSC’s link for public comment, also to attend that virtual hearing, which is taking place at 6:30 p.m.
We’ll see if they end up granting a contested hearing, but according to the attorney general, approval of those contracts without public scrutiny would be unprecedented.
