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AG Nessel Discusses Data Centers on Pantsuits and Lawsuits
March 11, 2026
LANSING – In the latest episode of the Pantsuits and Lawsuits podcast, Michigan Attorney General Dana Nessel unpacks the real-world stakes of rapidly expanding AI data centers and the impact their enormous energy demands could have on reliability, affordability, and community well-being. Joined by Assistant Attorney General Michael Moody, division chief of the Special Litigation Division at the Michigan Department of Attorney General, and Caryn Potter, an environmental and energy specialist for the Arizona Attorney General's Office, Attorney General Nessel walks listeners through how utilities, regulators, and AI companies negotiate deals, many in secret, that can shape a state’s energy system for decades. The discussion explores the mechanics of large-load growth: queue gaming that secures scarce capacity, special contracts that move behind redactions, and rate structures that can quietly shift costs from hyperscale users to households.
“A single hyperscale data center has the ability to redraw the map of a state’s entire energy system — and your monthly bill,” said Attorney General Nessel. “It was incredibly insightful to speak with Michael and Caryn, who work on these issues every day, about how the costs of powering massive data centers can shift to ratepayers and what protections regulators must put in place to ensure residents aren’t left subsidizing the enormous energy demands needed to support these facilities.”
During the episode, Attorney General Nessel and her guests explain why standardized large-load tariffs and hard collateral requirements for AI data centers matter, how transparency lets consumer advocates test utility claims, and what goes wrong when evidence is sealed. They also dig into utility incentives to build capital-intensive projects, the risk of “gold plating,” and the uncomfortable truth that regulated returns can persist even when performance lags.
The episode also examines the long-term risks of data centers. Contract deals spanning 15 to 20 years, rapid shifts in AI workloads, chips, and cooling could strand assets and leave communities paying for empty capacity. To address those risks, Attorney General Nessel and the experts outline practical guardrails, including public dockets with accessible data, performance-based obligations, clawbacks on incentives, demand flexibility from data centers, and community benefits that outlast hype cycles. The discussion also outlines the role of state commissions versus attorneys general, why revolving doors and political money complicate decisions, and how to align tax incentives with real local gain.
During her time in office, Attorney General Nessel has been a strong advocate for Michigan ratepayers. Currently pending before the Michigan Public Service Commission is Attorney General Nessel’s motion to reopen DTE’s application for approval of two special contracts to service an anticipated hyperscale AI data center in Saline Township, citing DTE’s failure to fully agree to conditions meant to protect its customers from subsidizing the costs to service the data center. The Attorney General asserts the matter must be reopened and subjected to a contested case proceeding because DTE failed to accept the Commission’s conditions. Attorney General Nessel recently discussed the matter in a video. Also pending before the Commission is Attorney General Nessel’s petition for rehearing in the same data center contract case, challenging the statutory authority of the Commission to approve these special contracts without a contested case hearing and requesting a rehearing in this matter.
New episodes of Pantsuits and Lawsuits are released regularly to break down complex legal topics in a way that is engaging, informative, and accessible to listeners. With their blend of expertise, humor, and straight talk, Attorneys General Nessel and Kris Mayes explore major legal cases, analyze state and national policy debates, and discuss how attorneys general help shape justice. Through these discussions, listeners will gain a behind-the-scenes look at the work attorneys general do to serve and protect their communities.
The latest episode is available now on major podcast platforms.
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