①Michigan regulators unanimously approved DTE Energy's request to provide power support for Oracle and OpenAI’s data center project; ②however, the hearing witnessed significant opposition, with concerns over excessive electricity consumption and potential environmental pollution caused by the data centers; ③DTE and Oracle stated that the project would bring economic benefits, tax revenue, and ensure stable electricity prices.
Cailian Press reported on December 19 (Editor Zhou Ziyi) that Michigan regulators unanimously approved a request by utility company DTE Energy on Thursday (December 18) to provide electricity for $Oracle (ORCL.US)$ and OpenAI's planned large-scale data center project.
Affected by this, Oracle's pre-market price surged nearly 6%, latest at $190.53.
According to documents previously submitted by DTE, the company has reached a power supply agreement with Oracle to support a multi-billion-dollar AI infrastructure with an installed capacity of 1.4 gigawatts located in Saling Township, Michigan.
Under the agreement, Oracle will bear the majority of the project costs, including monthly minimum charges and termination fees. According to sources familiar with the matter, developers are financing the project through a debt agreement worth approximately $14 billion.
DTE had previously applied to regulators for expedited approval of this agreement. According to the latest developments, supervisors from the Michigan regulatory body stated that the proposed contract between the utility company and the tech firms does indeed safeguard the interests of the power grid and the general public.
Dan Scripps, Chairman of the Michigan Public Service Commission, noted, “These agreements will generate a net financial benefit for DTE’s other customers.”
Moreover, on December 18 local time, TikTok CEO Shou Zi Chew sent an internal letter updating the progress of TikTok's U.S. operations.
An internal letter stated that ByteDance and TikTok have signed agreements with three investors, including $Oracle (ORCL.US)$ , Silver Lake, and $Metagenomi Technologies (MGX.US)$ , and will establish a new TikTok U.S. joint venture.
The new joint venture, named TikTok USDS Joint Venture LLC, will be responsible for data protection, algorithm security, content moderation, and software assurance in the United States.
Other entities of TikTok in the U.S., which are wholly owned by ByteDance, will continue to handle commercial activities such as e-commerce, advertising, and market operations, as well as the global interconnectivity of TikTok products. Matters related to the agreement will be completed no later than January 22, 2026.
Opposition Voices
The rapid expansion of data centers in the United States is reshaping the energy industry landscape. Meanwhile, controversies surrounding these infrastructures are increasing, primarily focusing on their staggering electricity consumption.
Undoubtedly, this conflict was also evident during the hearing held in Michigan on Thursday.
Before the vote, Scripps was repeatedly interrupted by opponents of the data center. During the hearing, a group of opponents stood at the podium to express their concerns, such as potential air and river pollution issues in their communities.
Local resident Beth Foley stated, "This approach is a capitulation to political pressure at the expense of the interests of the residents you serve. I drive past this project area every day, and it looks absolutely apocalyptic."
In response, a representative of DTE stated in a declaration that the utility company has an obligation to serve all customers within its jurisdiction, including data centers, "We acknowledge the range of perspectives and emotions surrounding this decision."
Oracle stated that the data center would bring economic benefits and tax revenues to schools and towns in Michigan, and the regulatory approval ensures that customers in Michigan will be protected from electricity price increases.
After the meeting, Citigroup noted that the regulatory approval process was indeed contentious. In a briefing on Thursday, its analysts wrote, "It is certain that this hyperscale cloud computing giant (Oracle) will be the first to have its power cut off during system emergencies, which should help prevent a potential scenario where 'Oracle’s data center remains fully lit while the public experiences blackouts.'"
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Editor/KOKO