Google partners with DTE to power Michigan data center

On Thursday, Google announced a partnership with Michigan utility DTE to add 2.7 gigawatts of new resources to power a new data center in the Detroit region. While Google may have signed on to President Trump’s power pledge, the company’s structured framework to secure energy for its data centers has been in development for months. The agreement represents a shift in how the technology company secures energy for its infrastructure, moving toward a structured framework rather than ad-hoc agreements.

The 2.7 gigawatts of new resources under the agreement will be broken down into several specific energy and storage components:

• 1.6 gigawatts of solar power
• 400 megawatts of four-hour energy storage
• 50 megawatts of long-duration energy storage
• 300 megawatts of additional clean resources
• 350 megawatts of demand response capacity

This agreement mirrors a deal Google signed last month with utility Xcel Energy to support a data center in Minnesota. Both agreements utilize Google’s Clean Transition Tariff, a specific energy procurement instrument designed to allow the company to pay a premium to specify the types of power it wants deployed. Google has been refining this tariff over the past year or so to encourage utilities to incorporate these technologies into their long-range planning, rather than treating them as one-off projects. This structured approach aligns with Google’s goal to use 100% carbon-free power, a commitment the company made seven years ago.

As part of the initiative, Google is launching a $10 million Energy Impact Fund, which is intended to reduce utility bills, including by insulating homes. Additionally, the company is exploring demand response strategies—the practice where large electricity users curtail their use for brief periods of time to ease grid strain. Under this framework, Google may be looking for companies willing to dial back their electricity needs at certain times.

Why it matters

Google is moving away from ad-hoc power purchase agreements toward a “bring your own power” strategy. By using its Clean Transition Tariff, the company can dictate specific energy types and force utilities to incorporate data center needs into long-range planning.