OpenAI and Oracle Announce $50 Billion Stargate Data Center in Michigan, State's Largest Investment Ever

Michigan selected for OpenAI Stargate data center; Gov. Whitmer calls it "largest investment" in state history

DeJanay Booth-Singleton is a digital producer at CBS Detroit. She covers various topics such as crime, business and politics. A new OpenAI Stargate facility is coming to Saline Township, which Michigan Gov. Gretchen Whitmer said on Thursday is the "largest investment" in state history. The multi-billion-dollar data center will be built by Oracle and Related Digital, creating more than 2,500 union construction jobs, over 450 on-site jobs and 1,500 jobs across Washtenaw County, according to a news release. According to OpenAI, the facility comes after the company announced six data center sites across the U.S. The facilities are part of a $500 billion investment in artificial intelligence infrastructure that was announced in January. Construction on the Michigan facility is expected to begin in early 2026, pending approval from the Michigan Public Service Commission, according to Related Digital. "Michigan has long been at the center of American engineering and manufacturing. We're proud to build here and to continue expanding the infrastructure needed to ensure the benefits of AI reach everyone," OpenAI said in a news release. In a statement, Related Digital CEO Brent Behrman said, "The Related Digital team has decades of combined experience in site acquisition and development, partnering with utility providers, and delivering data centers for leading hyperscalers on time and on budget. We look forward to beginning construction in early 2026." State officials say Michigan was selected because of the state's "strong construction and tech workforce, capable of both building and operating the facility," as well as bipartisan bills signed by Whitmer to lower the cost of building AI infrastructure. State officials say the project is expected to be one of the most advanced AI facilities in the nation and will not require additional power generation or additional water from the Great Lakes through a closed-loop water system. Officials say the facility will also preserve more than 700 acres of land that will be used as farmland, wetland and forest. In addition to the large investment, state officials say Related Digital will invest $14 million in local fire departments, a community investment fund and a farmland preservation trust, as requested by the Saline Township Board. "Today, we won the largest economic project in Michigan history," Whitmer said in a statement. "I'm grateful to these cutting-edge companies for betting on Michigan, building on our work to compete for and win big projects in next-generation industries from cars and clean energy to semiconductors and batteries. We will continue working together at the state level to win more projects so we can create even more good-paying, local jobs for Michiganders and grow our economy. This investment from Oracle and Related Digital sends a simple message to anyone who wants to build the future -- you can build it in Michigan." Talk of data centers has been at the forefront in recent months, with a proposed center in Howell Township. However, residents in Livingston County have opposed the proposed center, even calling for a moratorium on rezoning an area of land. Howell Township Trustee Bob Wilson says a committee will be created to review the information about the potential data center. This week, the Michigan Public Service Commission held a public meeting to discuss how the utility companies would meet the future demand of data centers in the future. Protestors rallied outside the meeting, and residents voiced concerns about how the state could reach its goal of being carbon-free by 2040.

OpenAI, Oracle plan 1 gigawatt Stargate data center in Michigan with Related Digital

OpenAI, Oracle, and Related Digital are building a 1 GW data center campus in Michigan, a multi-billion dollar investment to expand U.S. AI infrastructure. This project, part of OpenAI's larger Stargate expansion, aims to meet its 10 GW commitment and will create over 2,500 union construction jobs, positioning Michigan as a hub for AI innovation. OpenAI, Oracle and Related Digital will build a data-center campus of more than 1 gigawatt in Saline Township, Michigan, as part of their Stargate push to expand U.S. artificial intelligence infrastructure capacity. The announcement made on Thursday underscores the AI industry's surging appetite for computing power, driven by the pursuit of technology capable of matching or surpassing human intelligence. The companies said it was a multi-billion dollar investment, without disclosing the exact figure. Industry executives have said 1 GW of computing power, enough to power roughly 750,000 U.S. homes, can cost around $50 billion. The construction is slated to begin in early 2026. The project is part of Oracle and OpenAI's 4.5-GW Stargate expansion and, together with six other U.S. sites, raises the infrastructure group's planned capacity to more than 8 GW and total investment to over $450 billion in the next three years. OpenAI said the move kept Stargate ahead of schedule to meet its $500 billion, 10-GW commitment. The startup has shared few details on how it plans to fund the spending. Earlier this week, it completed a restructuring that frees the ChatGPT maker to move away from its nonprofit roots. Reuters has reported it was laying the groundwork for an initial public offering that could value the company at up to $1 trillion. But surging valuations of AI companies and their massive AI spending commitments, which total more than $1 trillion for OpenAI, have raised fears that the AI boom is inflating into a bubble. OpenAI said on Thursday Related Digital would develop the Michigan project, which is expected to create more than 2,500 union construction jobs. "This project will help ensure Michigan is a key part of building the AI infrastructure that will power the next generation of American innovation," said Peter Hoeschele, OpenAI's vice president of industrial compute.

OpenAI, Oracle plan 1 gigawatt Stargate data center in Michigan with Related Digital

(Reuters) -OpenAI, Oracle and Related Digital said on Thursday they would build a data-center campus of more than 1 gigawatt in Saline Township, Michigan, as part of their Stargate push to expand U.S. artificial intelligence infrastructure capacity. The project would start construction in early 2026 and is part of Oracle and OpenAI's previously announced 4.5-GW expansion under the Stargate program. It brings Stargate to more than 8 GW of planned capacity and more than $450 billion in investment over the next three years. The companies said it was a multi-billion dollar investment, without disclosing the exact figure. Industry executives have said 1 GW of computing power, enough to power roughly 750,000 U.S. homes, can cost around $50 billion. Related Digital will develop the project, which is expected to create more than 2,500 union construction jobs. "This project will help ensure Michigan is a key part of building the AI infrastructure that will power the next generation of American innovation," said Peter Hoeschele, OpenAI's vice president of industrial compute. (Reporting by Aditya Soni and Akash Sriram in Bengaluru; Editing by Shilpi Majumdar)