Michigan Data Center Agreement Sets $2.26 Billion Exit Payment

DTE Electric’s Primary Supply Agreement with Green Chile Ventures LLC, an Oracle subsidiary, provides power for a planned 1.38-gigawatt data center in Saline Township, Michigan. The facility is associated in the source reporting with OpenAI’s Stargate program. The agreement sets out minimum monthly charges and termination payments on a month-by-month schedule, with payments running from December 2027 to February 2045. The reporting describes the planned campus as a large, concentrated electricity load that requires substantial generation and transmission infrastructure before the customer begins drawing power at full scale.

The headline financial protections are material to project economics: a reported $19 million minimum monthly charge at full ramp, whether or not the facility uses that amount of electricity every day, and a termination payment reported at $2.26 billion if the agreement is cancelled at the outset. The source also characterizes the termination amount as roughly $2.3 billion. These charges reflect the risk that infrastructure built for one very large customer could become underused or stranded if that customer reduces demand or exits. The stated purpose of the exit mechanism is to assign costs to the customer whose requested load prompted the investment, rather than pass those costs to residential and small-business ratepayers.

For government contractors, utilities, developers, lenders, and infrastructure investors, the agreement is a signal that large-load power arrangements can impose long-duration payment obligations well beyond a facility’s construction phase. Firms bidding on design, construction, transmission, generation, or data center services should account for minimum-demand commitments, cancellation exposure, and the timing of scheduled payments when developing pricing, financing assumptions, and delivery plans. The commercial consequences may also affect counterparties supporting project financing or equipment procurement: a customer’s ability to meet contractual obligations can influence the sequencing and bankability of related work, although the source does not specify particular contract awards or federal procurement actions.

Michigan’s broader large-load tariff order remains pending, so the DTE agreement should not be treated as a complete statement of future tariff terms for every project in the state. The reporting points to an Ohio tariff approved in July 2025 and an AES Ohio collateral proposal made in 2026 as related approaches to managing large-load risk. It also identifies activity or regulators in Minnesota and Oregon, but provides no specific terms for those jurisdictions. For market participants, the practical task is to monitor state-level decisions and filings closely: minimum bills, termination charges, collateral, and other customer protections may differ by jurisdiction and project.

• DTE Electric and Green Chile Ventures LLC, an Oracle subsidiary, entered a Primary Supply Agreement for the planned Saline Township data center.
• The planned facility has a stated capacity of 1.38 gigawatts and is associated in the source reporting with OpenAI’s Stargate program.
• At full ramp, the agreement includes a reported $19 million minimum monthly charge, regardless of whether the customer uses that amount of electricity every day.
• The reported termination payment is $2.26 billion if cancelled at the outset; the source also describes it as roughly $2.3 billion.
• Scheduled minimum charges and termination payments run from December 2027 through February 2045, creating a long-term obligation to model in financing and delivery assumptions.
• The exit-payment mechanism is intended to place the cost of capacity and infrastructure requested for the project on the departing customer, rather than other electric customers.
• Michigan’s broader large-load tariff order is pending; future projects may face terms that differ from this agreement.
• The source cites an Ohio tariff approved in July 2025 and an AES Ohio collateral proposal in 2026 as examples of other state approaches to large-load exposure.
• Contractors and project counterparties should stress-test demand, customer credit, cancellation scenarios, payment timing, and financing against minimum-charge and exit-fee provisions.
• The source lists the Public Utilities Commission of Ohio, Minnesota Public Utilities Commission, Oregon state utility regulators, and Michigan state regulators; it does not provide detailed Minnesota or Oregon policy terms.