Google Data Center Deal Gets Michigan Regulators' Approval

Michigan regulators have given their approval to power supply deals for Google's data center in Van Buren Township. The agreements are between DTE Electric Co. and Google LLC, with conditions designed to prevent other customers from paying for the project.

The Michigan Public Service Commission approved a supply agreement and a clean energy agreement between DTE and Google under the condition that no costs are passed on to DTE's other customers. This means that Google will pay fixed costs that benefit the entire grid, resulting in a $1.7 billion net benefit for DTE's other customers over 20 years.

Dan Scripps, MPSC Chair, stated that Google 'can pay its own energy bills' and that the contracts ensure it does just that. The supply contract runs for 20 years, compared to the typical five-year contracts required of DTE's largest customers. Google must also pay at least 80% of its contracted electricity use even if it uses less.

The second agreement requires Google to pay for DTE to develop up to 1,600 megawatts of renewable energy and 480 megawatts of battery storage to serve the data center. This will ensure that the facility is powered by clean energy sources.