Detroit-based utility DTE Energy has finalized its first data center contract with a hyperscaler for 1.4GW of power capacity.

According to the company, the hyperscaler will be served with existing capacity and new energy storage investments, which will be paid for by the data center. It is expected to ramp up over the next two to three years. DCD has reached out to DTE to ask about the identity of the customer.

“The data center agreement is a great step forward in executing our long-term strategy while also creating substantial affordability benefits for existing customers," said Joi Harris, DTE Energy's president and CEO.

Revealed during the company’s Q3 results, the utility also reported that it is in advanced discussions for more than 3GW of new hyperscale data center load, has a further 4GW of data center load in its early pipeline, and intends to sign at least 1GW by the end of the year.

“Customers currently in advanced discussions have secured land positions, established clear zoning pathways, and have earned the backing of the local community,” said Harris.

DTE Energy said that near-term data center growth, projected to add up to 3GW of demand, will be supported through existing generation capacity and new energy storage projects.

Over time, additional data center expansion will require fresh investment in baseload generation. The company noted that energy storage development will scale directly with rising data center load, creating a one-to-one alignment between capacity and demand. These incremental investments fall outside DTE’s current five-year capital plan.

In addition, the utility also reported that it had invested almost $3 billion in its utilities through the third quarter of 2025 and remains on target to invest a total of $4.4bn this year. The investments focus on upgrading and modernizing the company’s electric and natural gas infrastructure and on transitioning to cleaner power generation.

"As we accelerate investments in cleaner energy and strengthen the safety and resiliency of our infrastructure, we are also generating enough reliable power to not only meet our customers' immediate needs, but power Michigan's future growth and prosperity," said Harris.

The utility serves approximately 2.3 million residential and business customers throughout Michigan. It also has a state-regulated natural gas arm, which provides natural gas to 1.3 million residential, commercial, and industrial customers across Michigan.

Currently, Switch is the largest player in the state, with 365, Bedrock, and Sentinum also present.