Michigan approves 1.3 GW BESS portfolio, including contested Oracle data center assets

The Michigan Public Services Commission (MPSC) has approved six energy storage projects with 1.3 GW cumulative power output.

Three of the projects approved by Michigan’s energy and utility regulator will provide combined power output of 1 GW, fulfilling developer DTE Electric Co’s energy storage obligations to the state. The remaining 332 MW of approved BESS is spread across three projects which will support a 1.3 GW data center being developed by Green Chile Ventures – a subsidiary of software and technology company Oracle.

Regulator approval for the Oracle data center BESS assets has been contested in Michigan, with the state’s attorney general and a number of campaign groups seeking a review of DTE Electric Co’s data center contracts. The motion from the state’s top lawyer was denied by MPSC, who said the attorney general and other petitioners “lacked standing” to petition for a rehearing. Attorney general Dana Nessel said the MPSC was performing a “grave disservice” to the state of Michigan.

The debate centers on six contracts proposed by DTE for the three battery storage facilities meant to support the Oracle data center project. Nessel has described these as “secret contracts” that the state lawyer has been unable to effectively since they were first filed in October 2025. MCSC contends that the attorney general has not identified any errors or brought forward new discovered evidence to reopen a hearing since the commission previously approved the contracts.

The three non-data center projects are proceeding under less controversy. The 450 MW Big Mitten Energy Center in Huron County has been greenlit for a 20-year tolling agreement, while the 200 MW Fermi Energy Center and the 350 MW Monroe I Energy Center in Monroe County are being developed by DTE under “self-build” contracts.

When combined with DTE’s wider portfolio, the six approved contracted projects bring the company’s total approved energy storage capacity to more than 2.6 GW. This exceeds the capacity of DTE Electric’s 1,150 MW Blue Water Energy Center, a large natural gas-fired plant approved by MPSC in 2018.

Aypa on the up

Meanwhile in Austin, Texas, Aypa Power has closed on a $500 million upsizing of its corporate credit facility, bringing total commitments to $1.55 billion. The Blackstone portfolio company owns, develops, and operates utility-scale energy storage and hybrid renewable projects across the United States. Its development pipeline numbers more than 22 GW and it has 42 projects in operation or under construction.

Its credit facility is structured as a revolving credit facility, term loan facility, and letter of credit facility which is intended to support its expansion beyond 2028.

Moe Hajabed, CEO, Aypa Power said the added liquidity would provide a welcome boost in project development in today’s capital-constrained market. “This added liquidity strengthens our ability to advance one of the industry’s most attractive development pipelines and positions Aypa to continue delivering at scale.”