Detroit-based DTE Energy is positioning itself to support a surge in data center development, identifying up to 8.4 GW of potential load growth tied to major technology clients and future projects, company officials said during a recent earnings call.
.jpg)
The utility is already preparing to supply a 1.4-GW data center for Oracle, currently under construction, while contracts have been submitted for regulatory approval for a separate 1-GW Google facility. Together, these projects represent a significant portion of DTE’s near-term growth strategy.
DTE “continues to make steady progress executing and finalizing contractual agreements needed to support data center growth,” President and CEO Joi Harris told analysts.
The company reported first-quarter 2026 operating earnings of $407 million, down from $436 million a year earlier, citing impacts from energy trading, tax timing and higher interest expenses. However, its electric utility segment posted gains, with operating earnings rising to $218 million from $147 million in the same period last year.
DTE received conditional approval from the Michigan Public Service Commission in December for its Oracle agreement, with construction underway and energy demand expected to ramp up over several years.
“The demand growth is supported by existing capacity and planned energy storage, with Oracle covering the full cost of their energy and capacity needs,” Harris said.
In parallel, DTE is awaiting approval for its agreement with Google, which is expected to reach full load by 2028. The project will be supported by a mix of renewable energy, storage and demand response resources, including up to 1,600 MW of renewables and 480 MW of storage.
Meeting Google’s needs could drive approximately $5 billion in additional investment in generation and storage infrastructure through 2032, according to the company.
“Importantly, these investments are supported by contracts that protect existing customers,” Harris said.
DTE has proposed a 20-year power supply agreement with minimum monthly charges, alongside a clean capacity acceleration agreement to fund renewable and storage assets. Provisions such as termination clauses and collateral requirements are designed to mitigate risk for current ratepayers.
Like the Oracle project, Google will fund its full energy usage. “While also providing affordability benefits to our other customers,” Harris added.
Beyond these anchor projects, DTE is in advanced discussions with additional data center developments representing roughly 2 GW of potential load, with another 3 GW to 4 GW in earlier-stage opportunities.
“Collectively, these opportunities would require investment in new baseload generation, renewables and related storage with the exact resource mix and timing to be refined through the IRP process,” Harris said.
The utility believes this pipeline positions it to achieve the high end of its long-term earnings growth target of 6% to 8% annually through 2030.
At the same time, DTE is continuing to invest heavily in grid reliability. The company has committed approximately $11 billion over five years to modernize its distribution system, including deploying smart grid technologies.
.jpg)
Following criticism in a 2024 audit over outage response times, DTE reports measurable progress. After a severe windstorm in March, outages were reduced by 60% compared to similar past events, and nearly all affected customers had power restored within 48 hours.
“The improvements we’re seeing today reflect years of targeted investment, improved processes and the commitment of our employees,” Harris said. “This work continues to make a meaningful difference for our customers through less frequent outages, faster restoration and improved reliability.”
The utility is also pursuing a $474.3 million rate case, largely tied to infrastructure upgrades, while committing to freeze rates for two years if certain project milestones and approvals are achieved.
“This rate case filing is predominantly driven by our distribution infrastructure investment plan, which is squarely focused on improving reliability,” Harris said.
Originally reported by Robert Walton, Senior Editor in Utility Dive.
