Michigan AG Appeals DTE Data Center Power Contracts to State Court
Attorney General Dana Nessel challenges state regulators’ approval of DTE power contracts for controversial Saline Township data center project.
SALINE TOWNSHIP, MICHIGAN — Michigan Attorney General Dana Nessel filed a challenge with the Michigan Court of Appeals on Friday seeking to invalidate state energy regulators’ approval of contracts allowing DTE Energy to supply power to a controversial data center under development in Saline Township.
The appeal follows months of legal battles over the contracts after the Michigan Public Service Commission gave conditional approval to the agreements in December 2025. Nessel’s office has argued that the commission should have held a contested case proceeding before approving the power supply contracts.
Rejected Motions Lead to Appeal
Following the commission’s December approval, Nessel filed multiple motions asking the regulatory body to reopen the case and reconsider the contracts. She questioned the commission’s authority to approve the agreements without a contested case proceeding, which would have allowed outside bodies like the Attorney General’s office to intervene and conduct legal discovery.
The three commissioners unanimously rejected Nessel’s requests at their March 27 meeting, prompting the attorney general to take her challenge to the appeals court. The contracts at the center of the dispute were heavily redacted before being shared with the public.
Legal Requirements at Issue
In her statement announcing the appeal, Nessel argued that state law requires the commission to hold a contested case hearing on the contracts. Such proceedings would have enabled her office to file testimony with the commission and examine the full details of the power supply agreements.
“It is our hope that the Michigan Court of Appeals will agree, and that the Commission’s ex parte approval of these contracts will be voided by the Court,” Nessel said in a statement.
The contested case process would have provided transparency and oversight that Nessel maintains was legally required for contracts of this magnitude and public importance.
Data Center Development Continues
The data center project in Saline Township has generated significant controversy as it moves through the regulatory approval process. DTE Energy’s role as the designated power supplier has raised questions about the environmental and economic impacts on local communities.
The Michigan Court of Appeals will now review whether the Public Service Commission properly followed state law in approving the power contracts without holding contested case proceedings. The timeline for the court’s review and potential decision remains unclear.
Nessel’s office has made transparency in utility contracts a priority, particularly when they involve major infrastructure projects that could affect ratepayers and local communities across Michigan.
