News
October 31, 2025

OpenAI Data Center Planned Near Ann Arbor

Construction Owners Editorial Team

SALINE TOWNSHIP, Mich. — A major technology investment is heading to Southeast Michigan as Related Digital, working with Oracle and AI pioneer OpenAI, moves forward with a plan to build a massive data center campus just outside Ann Arbor.

Courtesy: Photo by  Pooja Singh on Unsplash

The 250-acre “hyperscale” development would require approval from the Michigan Public Service Commission and is slated to begin construction in 2026. The project survived local pushback and a legal challenge over rezoning, ultimately gaining township approval after negotiations.

Jeff T. Blau, CEO of Related Companies and Chairman of Related Digital, said the region will play a critical role in America’s AI future:

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

A record-setting economic deal

Governor Gretchen Whitmer promoted the project as a historic economic victory for the state:

The “largest economic project in Michigan history.”

She added:

“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.”

Whitmer emphasized that Michigan continues to win major investments in sectors ranging from EVs to semiconductors:

“I’m grateful to these cutting-edge companies for betting on Michigan…”

Energy and infrastructure demands

The facility is expected to use 25% more energy than DTE Energy Co. currently delivers to its entire customer base. Yet DTE says it has the ability to support the growth.

The utility will supply 1.4 gigawatts of power — comparable to adding a major industrial city to the grid over the next several years.

Concerns have emerged about how data centers affect energy bills, water supply, and grid resilience.

Sierra Club Michigan lobbyist Tim Minotas warned:

“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.”

Developers argue they’re taking measures to minimize environmental impacts. The project will use a closed-loop cooling system, which developers say:

“limits daily water use to levels comparable to an office building.”

State Rep. Morgan Foreman said she initially shared those water concerns but believes protections are in place — and the job benefits are significant:

“I’m hoping that it can maybe be a standard for other data centers looking to come to Michigan.”

No additional cost to ratepayers, DTE insists

Courtesy: Photo by  İsmail Enes Ayhan on Unsplash

New Michigan legislation prohibits shifting grid costs onto residential customers while offering sales and use tax exemptions for data centers through 2028.

DTE Energy CEO Joi Harris reinforced that commitment:

“Most importantly, data center development in DTE’s electric service territory will not increase customer rates.”

The data center will also fund new energy storage systems, allowing DTE to better handle peak demand and store excess generation.

Community reactions remain mixed

The campus — nicknamed “The Barn” after a historic barn being preserved on-site — marks a dramatic change for the rural community of about 3,000 residents.

Farmer and planning commissioner Ronald Kohler acknowledged the transition:

“It’s a beautiful property… But it is what it is. We’ll deal with it. I think it will be good for the community.”

Local fire services, schools, and even the township cemetery are expected to benefit from increased revenue.

Noise levels from the facility would be kept below 65 decibels, which experts say is safe for human hearing.

What’s next?

DTE is set to file its formal application to the state utility commission, with more details expected soon. If approved, construction could begin in 2026 and ramp up into one of the largest data infrastructure hubs in the Midwest — powering artificial intelligence innovations nationwide.

Originally reported by Summer BallentineBreana NobleBeth LeBlanc in The Detroit News.

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