Key Takeaways OpenAI, Oracle, and Related Digital will build a massive 1-gigawatt AI data center campus in Saline Township, Michigan, with construction expected to begin in early 2026. Industry expert...
OpenAI, Oracle Corporation and Related Digital announced plans on Thursday to develop a multi-billion-dollar artificial intelligence data center campus in Saline Township, Michigan, marking a significant expansion of the companies' Stargate infrastructure initiative.
The facility, spanning 250 acres of land approximately 15 miles south of Ann Arbor, will feature more than one gigawatt of computing capacity, enough to power roughly 750,000 American homes.
Industry analysts estimate such computing capacity could require an investment of approximately $50 billion, though the companies declined to disclose the exact project cost.
Michigan Governor Gretchen Whitmer called the project the largest economic investment in state history. "Today, we won the largest economic project in Michigan history," Whitmer said in a statement.
"This transformational new Stargate OpenAI facility, built by Oracle and Related Digital, will create 2,500 good-paying union construction jobs, more than 450 permanent high-skill, high-paying jobs on site, and 1,500 more in the community while helping us lead the future of advanced manufacturing and technology."
The Michigan campus will consist of three buildings totaling 1.65 million square feet and is being designed with LEED certification standards.
The project, dubbed "The Barn" in reference to a historic red barn being preserved at the site entrance, represents a major step in OpenAI and Oracle's partnership to deliver 4.5 gigawatts of additional Stargate capacity.
Jeff T. Blau, CEO of Related Companies and Chairman of Related Digital, emphasized the strategic importance of the investment.
"We are proud to be developing this critical project exclusively for Oracle and contributing to keeping our nation competitive in the global AI race," Blau said. "This historic, multi-billion-dollar investment will ensure that Michigan plays a leading role in developing the digital infrastructure American companies need."
Peter Hoeschele, OpenAI's vice president of industrial compute, stated: "This project will help ensure Michigan is a key part of building the AI infrastructure that will power the next generation of American innovation.
By expanding Stargate to Michigan, we can strengthen domestic supply chains, create good jobs, and help more communities share in the economic opportunities AI is creating."
The project has been designed to address common concerns associated with large-scale data centers, which are known for their significant energy and water consumption.
According to the developers, the facility will utilize a closed-loop cooling system that limits daily water use to levels comparable to an office building, avoiding additional withdrawals from the Great Lakes.
DTE Energy will supply 100 percent of the power to the project using existing resources, augmented by a new battery storage investment that will be financed entirely by the project.
Joi Harris, CEO of DTE Energy, emphasized customer protections in a statement: "Most importantly, data center development in DTE's electric service territory will not increase customer rates. Recent legislation passed by the Michigan legislature ensures our customers will not subsidize data center rates."
However, environmental advocates have raised concerns about the broader implications of data center expansion in Michigan.
Tim Minotas, legislative and political director for the Sierra Club's Michigan chapter, said in a statement: "DTE's announcement today that it will power a massive 1.4-gigawatt data center in Michigan is further proof of what we have been saying since last year. Data centers are coming to Michigan and can pose a threat to our neighborhoods, our economy, energy bills, water, and climate without proper guardrails in place."
The Michigan facility joins several other Stargate sites announced across the United States, including projects in Texas, Wisconsin, New Mexico and Ohio.
Together, these projects bring the Stargate initiative to nearly 8 gigawatts of planned capacity and over $450 billion in investment over the next three years, putting the consortium ahead of schedule to meet its $500 billion, 10-gigawatt commitment.
Mahesh Thiagarajan, executive vice president of Oracle Cloud Infrastructure, highlighted Michigan's industrial legacy: "Oracle is excited for Michigan to be the next site for our Stargate project with OpenAI.
Historically, Michigan has been at the forefront of innovation and industry in America, and this strong legacy will continue as we work with Related Digital to rapidly expand our cloud capacity to meet the unprecedented demand for AI."
The project is being funded by a consortium of leading private investors and financial institutions.
Construction is expected to begin in early 2026, pending approval from the Michigan Public Service Commission, with Walbridge, a Detroit-founded construction firm with over 100 years of history, serving as general contractor.
State officials cited Michigan's skilled construction and technology workforce, proximity to the University of Michigan and Eastern Michigan University, and recent bipartisan legislation lowering costs for high-tech infrastructure as key factors in securing the project.
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