GoKawiilGoogle may have signed on to President Trump’s toothless power pledge, but it’s clear the company started working months ago on a framework to power its data centers.
On Thursday, Google said it will work with Michigan utility DTE to add 2.7 gigawatts of “new resources” in suburban Detroit to power a new data center in the region. Some specifics are still fuzzy at this point, but the deal mimics one signed last month with Xcel Energy to build a data center in Minnesota. This is how Google will develop new capacity for its future data centers.
The new plan includes 1.6 gigawatts of solar power, 400 megawatts of four-hour energy storage, 50 megawatts of long-duration energy storage, and 300 megawatts of “additional clean resources,” which is a squishy way of saying anything from wind and hydro to nuclear and geothermal.
TechCrunch sent Google’s PR people a number of questions, and while they responded with some details, it’s clear there’s a lot to the proposal that either isn’t fleshed out or isn’t fully public yet. To wit: does “clean resources” include natural gas? We haven’t received a reply on that one yet.
The remaining 350 megawatts of the 2.7 GW deal will be covered by demand response, which is when large electricity users curtail their use for brief periods of time. What shape that takes remains to be seen. Google may be looking for companies that are willing to dial back their electricity needs at certain times, or it will turn off its own data centers when the grid is strained.
The DTE deal will also use Google’s Clean Transition Tariff, which it has been refining over the past year or so. The tariff was previously used in Google’s deal with Xcel Energy. It’s intended to allow Google to pay a premium to specify the types of power it wants deployed while also encouraging utilities to incorporate such technologies into their long-range planning. Previous instruments like power purchase agreements were often treated by utilities as one-offs.
Google also said it is introducing a $10 million Energy Impact Fund intended to reduce utility bills, including by insulating homes. It sounds a lot like energy efficiency programs run by utilities, just with Google’s name on it. Whether $10 million is enough to assuage regular people’s concerns about rising electricity prices remains to be seen.
Techcrunch event Disrupt 2026: The tech ecosystem, all in one room Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $400. Save up to $300 or 30% to TechCrunch Founder Summit 1,000+ founders and investors come together at TechCrunch Founder Summit 2026 for a full day focused on growth, execution, and real-world scaling. Learn from founders and investors who have shaped the industry. Connect with peers navigating similar growth stages. Walk away with tactics you can apply immediately
Offer ends March 13. San Francisco, CA | REGISTER NOW
... continue reading