Three major tech companies, OpenAI, Oracle, and Related Digital, have unveiled their plans to establish a substantial data center in Saline Township, marking Michigan’s entry into the hyperscale data center industry. The proposed facility is expected to exceed 1 gigawatt in capacity and will be developed as part of the companies’ Stargate joint venture, occupying 250 acres of farmland. Construction is slated to commence in 2026, with the project estimated to be worth over $7 billion.
DTE Energy, the utility provider in the area, will supply approximately 1.4 gigawatts of power to the data center, reflecting a significant increase in demand for the company, expected to rise by 25%. CEO Joi Harris described the data center as a monumental milestone, creating over 450 direct jobs and additional opportunities in Washtenaw County, which aligns with Governor Gretchen Whitmer’s emphasis on boosting Michigan’s competitiveness in next-generation industries.
Despite the project’s optimistic outlook, it has faced opposition from locals concerned about its environmental impact and potential strain on the energy grid. The initial rejection by the Saline Township board for rezoning the project was overturned by related legal actions, and developers have committed to investing $14 million into community resources and monitoring systems to address some local concerns.
Utilities have expressed a mixed sentiment over the impending data center boom, balancing enthusiasm for potential economic benefits with apprehensions about maintaining infrastructure without overburdening local energy supplies. Consumers Energy has signaled ongoing efforts to secure additional data center projects, highlighting the new wave of interest in Michigan amid recent legislative tax incentives designed to attract such developments.
As the landscape of technology continues to evolve, this significant investment underscores Michigan’s aspirations to position itself as a pivotal player in the AI and tech industry. It is a step towards a more advanced future, with hopes that the infrastructure developed will support continued innovation in the state.