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Tech giants announce $7B data center, Michigan's first hyperscale campus
Michigan is poised to receive its first hyperscale data center after three tech giants revealed themselves Thursday as the developers behind a proposed 1-gigawatt-plus AI project on farmland in Saline Township. The news that OpenAI, Oracle and Related Digital will build the massive computing
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OpenAI, Oracle bringing AI data center to Saline Township
Why it matters: Data centers power the AI boom reshaping the Midwest, straining energy systems and consuming millions of gallons of water while offering unclear benefits for local communities. * These facilities, which house computer systems, servers and storage infrastructure, can bring temporary
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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
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Tech Giants Announce $7B Data Center, Michigan's First Hyperscale Campus
Michigan is poised to receive its first hyperscale data center after three tech giants revealed themselves Thursday as the developers behind a proposed 1-gigawatt-plus AI project on farmland in Saline Township. The news that OpenAI, Oracle and Related Digital will build the massive computing
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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,
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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
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Tech giants OpenAI, Oracle, and Related Digital reveal plans for Michigan's first hyperscale data center in Saline Township, marking the largest economic investment in state history. The 1-gigawatt facility will support AI infrastructure expansion while creating thousands of jobs.
Three technology giants have unveiled plans for what Michigan Governor Gretchen Whitmer calls "the largest economic project in Michigan history." OpenAI, Oracle, and Related Digital announced Thursday their joint venture to construct a massive artificial intelligence data center in Saline Township, with an investment exceeding $7 billion
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. The facility represents Michigan's first hyperscale data center, marking a significant milestone for the state's technology infrastructure3
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Source: ET
The project is part of OpenAI's broader Stargate expansion initiative, which aims to build AI infrastructure capacity across the United States. Construction is scheduled to begin in early 2026, pending approval from the Michigan Public Service Commission
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. The announcement comes as OpenAI works to meet its ambitious $500 billion, 10-gigawatt commitment for AI infrastructure development5
.The data center campus will occupy 250 acres of a 575-acre site, featuring three buildings of 550,000 square feet each
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. With a capacity exceeding 1 gigawatt, the facility will require substantial power infrastructure to support its operations. DTE Energy, the utility serving the Saline area, has committed to providing 1.4 gigawatts of power to the project, representing a 25% increase in the company's power demand4
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Source: Axios
To meet this unprecedented energy demand, DTE will utilize excess capacity on its existing grid and implement a $2 billion battery storage facility funded by the developers
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. The companies have designed the facility with a closed-loop cooling system that will limit water usage "to levels comparable to an office building," addressing environmental concerns about resource consumption4
.The project promises significant economic benefits for Michigan, with officials projecting the creation of more than 2,500 union construction jobs and over 450 permanent on-site positions
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. Additional spinoff employment is expected to generate approximately 1,500 jobs across Washtenaw County2
. Governor Whitmer emphasized the project's role in positioning Michigan as a leader in next-generation industries, building on the state's existing strengths in automotive manufacturing, clean energy, semiconductors, and batteries1
.The developers will benefit from recently enacted Michigan legislation that provides sales and use tax exemptions on equipment, along with a proposed 12-year, 50% local tax abatement
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. These incentives were specifically designed to attract AI infrastructure investments to the state.Related Stories
The project faced initial resistance from local officials and residents. The Saline Township board initially voted against rezoning the 575-acre site for data center development, prompting Related Digital to file a lawsuit alleging exclusionary zoning practices
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. A settlement reached last week cleared the legal obstacles, paving the way for Thursday's public announcement.To address community concerns, the developers agreed to invest $14 million in local initiatives, including contributions to fire departments, a community investment fund, and a farmland preservation trust
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. Additional concessions include on-site groundwater level monitoring wells and preservation of more than 700 acres for farmland, wetland, and forest use3
.Summarized by
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