Consumers Energy has announced that it plans to power a new hyperscale data center with 1GW of power somewhere in Michigan’s Lower Peninsula. The utility didn’t say where just yet.
“The data center agreement is a big win and reflects progress in our growth as well as the opportunity to invest in new renewable and thermal resources,” Consumers Energy CEO Garrick Rochow said in the company’s Q2 earnings call.
According to a spokesperson, the new data center load will increase into the 2030s, providing the utility with time to plan for any new capacity that may be needed to power the data center.
Consumers Energy is in the process of requesting approval of a special electricity rate for large power users from the Michigan Public Service Commission. The goal of the special electricity rate is to prevent cost-shifting to avoid other ratepayers footing the bill for serving large new power loads.
The utility company did not specify what type of power it plans to use at the new facility. If it’s natural gas then the cost of building the new plant would run about $800 Million. While cheaper than building a nuclear facility, a natural gas plant has higher fuel costs and produces carbon emissions, unlike renewable or nuclear options.
