Billionaire philanthropist Stephen Ross’ Related Digital is joining forces with Oracle and OpenAI to develop a major data center project in Saline Township, located just outside Ann Arbor. The ambitious plan, unveiled on Thursday, includes a massive 250-acre campus that is expected to kick off construction in 2026, contingent on getting the green light from the Michigan Public Service Commission.
Initially facing pushback from township officials regarding rezoning, Related Digital opted to forgo a potential court battle when the board eventually permitted the project to advance. While the total cost of the undertaking has not been disclosed, it is described as a multi-billion-dollar investment aimed at bolstering the United States’ position in the global race for artificial intelligence.
Jeff T. Blau, the CEO of Related Companies and Chairman of Related Digital, expressed pride in developing what he called a “critical project” that caters to Oracle. He emphasized the project’s significance for Michigan’s ambitions to enhance its digital infrastructure vital for American businesses.
Dubbed a “hyperscale” data center, the facility is anticipated to consume approximately 25% more electricity than is currently provided to local customers by DTE Energy Co. However, DTE has assured that it possesses the necessary excess capacity and can supply the required 1.4 gigawatts of power as demand grows in the coming years.
Michigan Governor Gretchen Whitmer hailed the data center as a pivotal economic development opportunity, labeling it the “largest economic project in Michigan history.” She pointed out the anticipated creation of 2,500 union construction jobs, alongside over 450 permanent high-skill positions and additional employment opportunities for the community, asserting that this project will position Michigan at the forefront of advanced manufacturing and technology.
While the benefits of such a facility are touted, there has been concern from environmental advocates regarding the energy expenditure and water consumption typically associated with data centers, which require significant resources for operations and cooling. Tim Minotas, a lobbyist for the Sierra Club in Michigan, voiced worries about the ramifications for local communities, energy costs, and the environment if such developments proceed unchecked.
To mitigate potential ecological impacts, the developers plan to implement a closed-loop cooling system designed to match the daily water use of an office building. Local lawmakers have expressed cautious optimism about the project, seeing it as a potential precedent for future data centers in the state, particularly with proper oversight.
As part of the agreement, DTE Energy has committed to funding new energy storage systems that will enable the utility to manage excess energy more effectively during peak demand periods without passing additional costs to consumers. DTE’s CEO assured that the data center would not increase utility rates for existing customers, thanks to legislative measures designed to shield residential consumers from bearing the financial burden.
The project, referred to as “The Barn” in honor of a historic structure slated for preservation on the site, represents a significant transition for the local agricultural community of fewer than 3,000 residents. Planning Commission member Ronald Kohler acknowledged the industrial shift but also expressed optimism about the broader community benefits, including support for schools and fire services while minimizing traffic disruption.
With various stakeholders participating in discussions to alleviate community concerns, the future of this data center project appears poised to open new avenues for economic growth and technological advancement in Michigan.