Google announced Tuesday it is working with the developer of the hyperscale data center seeking approval in Van Buren Township and may sign on to the project.
The tech giant is evaluating whether it will get involved with Project Cannoli, the hyperscale data center project advancing in the western Wayne County community, a Google spokesperson said in an email. The data center project is being pushed by California real estate development firm Panattoni Development Co.
“We’re still in the early phases of this process and have additional milestones to reach,” the email said. “We’re working closely with Pannetoni and Van Buren Township as we go through the process and will share more details as we have them.”
Google announced Tuesday morning it plans to develop a large data center in DTE Energy Co.’s service territory. It is “evaluating” the Van Buren Township site, according to a press release.
Google has struck a deal with DTE that will allow it to finance the building of 2.7 gigawatts of new electricity sources it will need to power the facility, the California company said in the press release.
The gargantuan figure, 2.7 gigawatts, is about as much energy as is needed to power 2 million homes and twice as much as will be needed to power the hyperscale data center under development in Saline Township, which also is in DTE’s service territory.
The Cannoli Project hyperscale data center in Van Buren Township will demand 1 gigawatt of power, DTE Energy Corporate Communications Director Jill Wilmot said in an email. The rest of the power supply Google funds will “provide additional capacity and ensure all customers continue to have reliable service from DTE, even during times of peak demand.”
Google promises to run Michigan data center on clean power
In its press release, Google said the power for its data center will be generated with what Google described as “clean, around-the-clock power” sources. Those sources include solar power, energy storage and demand flexibility, which means the data center can use less power if demand from other grid users is high.
The company will not power the facility with nuclear power or natural gas, the Google spokesperson said.
Google will finance the entire 2.7 gigawatts of new power supply through an agreement with DTE “to help ensure any costs associated with our data center project come to us (Google),” the company spokesperson said in an email.
DTE will have to seek approval for the plan from the Michigan Public Service Commission, which regulates DTE.
DTE is filing the agreements with the MPSC on Tuesday, the company said in a press release. The agreements require Google to pay for new power generation, energy storage, transmission and distribution investments needed for its new data center, the company said.
“Michigan is well-positioned to be a national model for how to realize the economic benefits of data center technology in our communities in a responsible way,” DTE President and CEO Joi Harris said in a press release. “Our agreement with Google supports innovation and long-term growth, continued investment in the grid and cleaner energy solutions, at the same time protecting customers from the associated costs and delivering real affordability benefits over the long term.”
Michigan Attorney General Dana Nessel, who opposed DTE’s request for a faster, non-contested case process with its contract to serve the Saline Township data center, said Google committed to pursue a contested case before the MPSC. She said her office will scrutinize the proposal to ensure DTE customers don’t foot the bill for the project.
“I applaud that commitment and its recognition of the significant strife caused by DTE, developer Related Companies, and the MPSC by their rushed, back-room deals and fast-tracked approvals over their Saline Township contracts,” Nessel said in a statement. “While we continue our efforts to re-open the secret Saline contracts, we look forward to reviewing these DTE-Google contracts and advocating in this case for the people of Michigan.”
In its press release, Google also said it will put $10 million into a fund to help drive down residential ratepayers’ bills by financing home weatherization projects, household energy efficiency work and energy workforce development, the press release said.
Why data centers are coming to Michigan
Michigan has become a hub for data center development since state lawmakers approved a tax incentive for data centers in 2024. At least 17 projects have been publicly announced since then, although some were stalled after they sparked community outrage, such as the project once planned for Howell Township.
Still, Michigan data center development trails other Great Lakes states.
Community members where data centers are planned have voiced concerns about how the facilities will impact their local land use, water sources and energy prices. Economists also warned the surge in demand for power will raise prices for regular ratepayers.
Data centers are warehouses of computing equipment used to power the internet. Hyperscale facilities, which train and operate artificial intelligence tools, can gobble up hundreds of acres.
Data centers use a lot of electricity. They also can lead to an increase in water use, either for cooling equipment or because they increase cooling needs at natural gas or coal-fired power plants.
ckthompson@detroitnews.com
This article originally appeared on The Detroit News: Google weighs joining Van Buren Township data center project
Reporting by Carol Thompson, The Detroit News / The Detroit News
USA TODAY Network via Reuters Connect
