OpenAI, the company behind ChatGPT, is teaming with Oracle and Detroit-area partners on a massive new data center campus in Washtenaw County’s Saline Township — a multibillion-dollar project expected to reshape Michigan’s role in the fast-growing artificial intelligence economy.
The development includes three 550,000-square-foot single-story buildings and is expected to cost more than $7 billion, according to the Wall Street Journal. Construction could begin early next year, providing 2,500 construction jobs and 450 long-term operational positions, according to a project announcement.
State officials say the project represents a key victory in attracting high-tech investment and capitalizing on nationwide AI demand.
Gov. Gretchen Whitmer has called it “the largest one-time investment in state history,” while noting that state legislation reducing costs for digital infrastructure played a direct role in landing the project.
OpenAI is partnering with Oracle to increase computational capacity for its rapidly evolving AI systems — technology that requires enormous power and cooling resources. Across the country, the rise of AI-focused data centers is already reshaping energy policy and utility planning.
Detroit-based DTE Energy will supply power for the complex and is installing new battery storage financed by the project. The utility maintains, per the company’s statement, that it “won't impact existing customers” — a concern often raised in communities facing new data center loads.
Water consumption is also a flashpoint in national debates around digital infrastructure. Whitmer’s office stated the project will rely on a “closed loop water system that will not require any additional water from our Great Lakes,” aiming to address environmental worries upfront.
Data centers typically deliver:
1. Large temporary construction workforces
2. Long-term tax revenue and public infrastructure upgrades
But analysts say they often produce fewer high-wage permanent jobs than other tech investments. Questions remain around community benefits, long-term workforce pipelines, and whether local residents will see affordability improvements or displacement pressures as industrial land values rise.
According to the U.S. Department of Energy:
And CBRE reports data center construction has grown 69% year over year — the highest in history — as companies race to expand cloud and AI infrastructure.
The project will be led by Related Digital, a subsidiary of Related Companies, founded by Detroit-born billionaire Stephen Ross. Although tied to the parent company he created, Ross “doesn’t have formal involvement” in Related Digital, per Crain’s Detroit.
Even without his direct role, the project strengthens the region’s growing profile in tech development and innovation anchored by Ann Arbor’s universities and engineering talent.
Originally reported by Annalise Frank in AXIOS.
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