News
November 3, 2025

Michigan Lands Major OpenAI Data Center Hub

Construction Owners Editorial Team

A massive new data center development headed to Michigan will be a key part of OpenAI’s nationwide push to scale artificial intelligence infrastructure. OpenAI, Oracle, and Related Digital have unveiled plans to build a more than 1-gigawatt data center campus in Saline Township, making the project one of the largest in state history.

Courtesy: Photo by Pooja Singh on Unsplash

The facility will join OpenAI’s Stargate network—an aggressive $500 billion global expansion in compute infrastructure designed to support its growing AI workloads, including ChatGPT and other future-generation models.

The 250-acre Saline Township campus — called The Barn — will feature three single-story, 550,000-square-foot data center buildings, designed with a closed-loop cooling system aimed at reducing water consumption. Subject to approval from the Michigan Public Service Commission, construction is expected to begin in early 2026, with Walbridge set to serve as the general contractor.

“We are proud to be developing this critical project exclusively for Oracle and contributing to keeping our nation competitive in the global AI race,” said Jeff T. Blau, CEO of Related Companies and chairman of Related Digital. “This historic, multi-billion-dollar investment will ensure that Michigan plays a leading role in developing the digital infrastructure American companies need.”

The project marks a major win for economic development efforts in the region. DTE Energy has committed to providing 100% of the project’s power, bolstered by a new battery storage investment funded entirely through the development.

The project has not come without challenges. Earlier plans called for a larger 575-acre campus across five buildings, leading to zoning disputes that ended in a lawsuit — later resolved — between Related and township officials.

But the deal’s approval signals a new chapter for Michigan’s role in the AI-driven economy.

“This project will help ensure Michigan is a key part of building the AI infrastructure that will power the next generation of American innovation,” said Peter Hoeschele, OpenAI’s vice president of industrial compute. “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. We’re proud to work with Oracle, Related Digital, DTE Energy, and other partners to bring this project to life in a way that benefits the local community.”

Oracle emphasized the state’s legacy of high-tech and industrial success as part of its selection process.

“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,” said Mahesh Thiagarajan, executive vice president, Oracle Cloud Infrastructure. “Oracle’s highly performant, secure, and cost-effective AI infrastructure is powering advanced AI systems to help ensure the US maintains its leadership in technology innovation for generations to come.”

Michigan Governor Gretchen Whitmer called it a transformational win for the state’s workforce and economy.
"Today, we won the largest economic project in Michigan history," Whitmer said. “I’m grateful to these cutting-edge companies for betting on Michigan… This investment from Oracle and Related Digital sends a simple message to anyone who wants to build the future — you can build it in Michigan.”

Part of a Nationwide AI Infrastructure Boom

Courtesy: Photo by Museums Victoria on Unsplash

The Michigan campus is one of several under development as part of the Stargate initiative:

U.S. Projects

  • Texas (Abilene — operational)
  • Texas, New Mexico, Wisconsin — under development

International Expansion

  • South Korea, Canada, UK, Germany, Norway, Argentina
  • Rumors of more locations ahead, including Canada and India

Related Digital, launched earlier this year, has quickly established a pipeline of large campuses across North America, including:
1GW Chicago campus (400 acres)
1GW Illinois site (500 acres)
1.2GW Missouri development (600 acres)
250MW Wyoming facility (115 acres)

Why It Matters

  • Major job creation for Michigan’s tech and construction sectors
  • Strengthens U.S. domestic control over AI infrastructure
  • Accelerates ability to train next-gen AI models
  • Repositions the Midwest as a cloud and compute hub

OpenAI’s growing processing demand continues to reshape data center strategy across the globe — and Michigan is now positioned at the center of that transformation.

Originally reported by Dan Swinhoe in Data Center Dynamics.

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