Michigan regulators have approved a 20-year agreement between DTE Energy and Google to power a massive Wayne County data center, even as DTE customers face rising utility bills and questions persist about who will ultimately pay for expanding Michigan’s electric grid.

The agreement comes amid broader political controversy surrounding data center development in Michigan, including questions about gubernatorial candidate Jocelyn Benson’s husband’s involvement in the industry and remarks by Gov. Gretchen Whitmer about proceeding with development despite public opposition.

The Michigan Public Service Commission unanimously approved the agreement October 1 for Google’s proposed 1-gigawatt facility in Van Buren Township, known as Project Cannoli. Under the contract, Google must pay for at least 80% of its contracted electricity demand, even if actual consumption falls below that threshold.

The approval comes as a $74.5 million DTE Gas rate increase took effect October 1, raising typical residential gas bills approximately 3.34%. Separately, DTE Electric is seeking another $474.3 million rate increase after regulators approved a $242 million electric rate hike earlier this year.

The Google project will require significant new energy infrastructure, including up to 1,600 megawatts of renewable generation and 480 megawatts of battery storage.

Although Google is contractually responsible for those resources, environmental advocates have raised concerns that broader grid expansion and future power-plant investments could impose costs on existing ratepayers. Regulators say the approved agreement prohibits shifting Google-related infrastructure costs onto other customers.

Meanwhile, Benson has faced questions about her husband, Ryan Friedrichs, who previously worked on a separate data center development in Saline Township. Benson denies her family has profited from the project, and Friedrichs has stepped away from Michigan developments.

Whitmer also drew criticism after video appeared to capture her telling Oracle CEO Clay Magouyrk, “We’re used to people saying no and doing it anyway,” amid opposition to data center development.

The planned data center in Wayne County will likely face intense scrutiny as voters balk at increased utility costs, and question the cozy relationship between Michigan’s politicians and data center developers.