• DTE in talks to advance 3 GW data center pipeline
• Could require up to 4 GW of new generation and storage

DTE Energy is in advanced discussions with hyperscale data center operators for an additional 3 GW of potential new load, on top of the 1.4 GW project it is already advancing with Oracle–OpenAI, a buildout that could require up to 4 GW of new generation and storage, executives said.

CEO Joi Harris said on the company’s 4Q25 earnings call on February 17 that the utility expects to reach final terms on a second hyperscale agreement in the coming weeks, marking the first step toward executing the broader 3 GW pipeline.

The initial 1.4 GW Oracle project — approved by the Michigan Public Service Commission in December — includes a 19-year power supply contract and a 15-year energy storage agreement. It will drive nearly USD 2bn in battery storage investment and Harris emphasized the project’s USD 300m in annual affordability benefits as data center advancements in Michigan come under public scrutiny, including from the state’s Attorney General.

Attorney General Dana Nessel has challenged DTE’s request for expedited approval of battery contracts tied to the Oracle project, arguing the agreements require fuller review to protect ratepayers.

Harris said data center growth creates “affordability headroom” by spreading fixed costs across a larger base of load. She added that contracts are structured so data center customers bear their full costs, shielding existing customers from risk.

A second contract would position DTE to achieve the high end of its 6%–8% long-term operating EPS growth target, and additional deals could push growth above 8% between 2027 and 2030, Harris said.

To support that demand, DTE has prepared for new dispatchable generation, including combined-cycle gas turbines capable of carbon capture, as well as expanded storage. The company plans to incorporate incremental generation needs into its 2026 Integrated Resource Plan filing.

NPM recently reported on a proposed 1 GW+ data center campus by developer Panattoni that would be served by DTE.

The surge in demand has prompted DTE to increase its five-year capital investment plan by USD 6.5bn to USD 36.5bn, primarily driven by data center-related generation, storage and grid modernization. The company expects annual equity issuances of USD 500m to USD 600m from 2026 through 2028, with similar levels through 2030, to help fund the expanded plan.

Beyond regulated growth, Harris highlighted an emerging opportunity within DTE’s non-utility arm, DTE Vantage, involving several hundred megawatts of behind-the-meter load for a hyperscaler. She described the approach as a “creative solution” that could be replicated at co-located sites nationwide.

*This story was originally published exclusively for NPM subscribers.