Tech Giants Unveil Michigan’s First $7B Hyperscale Data Center Project

SALINE TWP., MI — Michigan is set to host its first hyperscale data center following an announcement from three tech giants on Thursday regarding a massive 1-gigawatt-plus AI facility. OpenAI, Oracle, and Related Digital plan to develop the extensive computing site on farmland in Saline Township.

The commitment comes shortly after DTE Energy, serving the Saline area, disclosed an agreement to provide 1.4 gigawatts of power to this data center. DTE Spokesman Ryan Lowry confirmed Thursday that this announcement pertains to the Saline Township project expected to start construction in 2026.

Governor Gretchen Whitmer praised the investment, citing it as “the largest economic project in Michigan history.” She stated the project will create over 450 onsite jobs and many more indirectly in Washtenaw County.

In context, this announcement highlights a notable push for economic development in Michigan’s tech landscape, as Whitmer also referenced other substantial projects, including a $7 billion investment from General Motors previously expected to generate 4,000 jobs.

The data center proposal has faced opposition, notably when the Saline Township board voted against rezoning a 575-acre site needed for the facility. However, Related Digital successfully contested this decision, claiming exclusionary zoning as a basis for their legal action.

Planning Commissioner Ronald Kohler expressed a change of heart regarding the project, citing developers’ commitment to investing approximately $14 million into the local community and making concessions for environmental monitoring.

House Speaker Matt Hall voiced his concerns about the tax breaks tied to the data center, advocating for more thorough community engagement on transformative projects. Yet, Phil Santer from Ann Arbor SPARK acknowledged potential opportunities for Michigan as part of broader AI initiatives.

The proposed data center is designed to occupy 250 acres with three buildings, each covering 550,000 square feet. This campus will implement a closed-loop cooling system to minimize water usage comparable to an office building.

Peter Hoeschele, an OpenAI vice president, affirmed that this initiative will ensure Michigan plays a pivotal role in the AI infrastructure essential for future innovation.

While excitement surrounds this announcement, critics highlight concerns regarding the environmental impact and infrastructure demands prompted by large data centers. The debate continues on how best to balance Michigan’s energy grid, the appeal for new investments, and the preservation of rural landscapes.