OpenAI Plans Major Data Center on Farmland Near Ann Arbor
Billionaire Stephen Ross’ Related Digital, in collaboration with tech giants Oracle and OpenAI, is set to construct a significant data center near Ann Arbor, Michigan. The project, which will begin in 2026, aims to cover a sprawling 250-acre campus in Saline Township, contingent upon approval from the Michigan Public Service Commission.
Project Details and Economic Impact
Related Digital previously faced legal challenges regarding the project after the township initially opposed its rezoning request. However, the township board eventually allowed the development to proceed, bypassing a court conflict. While the total cost remains undisclosed, the CEO of Related Companies, Jeff T. Blau, emphasized the importance of this multi-billion-dollar investment to keep the U.S. competitive in the global AI arena.
Dubbed a “hyperscale” data center, this facility is expected to demand 25% more energy than what DTE Energy currently provides. As noted by DTE spokesperson Jill Wilmot, the company anticipates that it will be able to meet this demand with an excess capacity of 1.4 gigawatts over the next few years.
Governor Gretchen Whitmer heralded the data center as “the largest economic project in Michigan history.” She highlighted that it will create thousands of jobs, including:
- 2,500 temporary union construction jobs
- More than 450 permanent high-skill jobs
- 1,500 additional jobs within the community
Environmental Concerns and Solutions
Data centers are known for their high energy and water consumption, raising concerns among local residents about potential increases in utility costs and changes to the community’s ecosystem. Sierra Club Michigan’s lobbyist, Tim Minotas, pointed out that while the data center development is certain, it brings forth challenges such as impacts on neighborhoods and climate.
In response, developers have committed to using a closed-loop cooling system aimed at minimizing water usage. State Representative Morgan Foreman expressed her cautious optimism about the project, citing its potential for job creation and tax revenue. She believes that this development could set a standard for future data centers in Michigan.
Energy Infrastructure and Legislative Support
The arrangement includes DTE implementing new energy storage systems funded by the data center, allowing for optimal use during high-demand periods. DTE’s CEO, Joi Harris, confirmed that customer rates will not increase due to this project; recent legislation prohibits such subsidization.
Moreover, the new Michigan law that took effect last year exempts data centers from specific sales and use taxes, promoting investment in this sector until 2028. This exemption ensures that DTE customers will not bear the financial burden of the development.
Community Response and Future Outlook
Local stakeholders have expressed mixed feelings about the project. Planning Commission member Ronald Kohler acknowledged the shift in zoning regulations as a significant change for the small agricultural community of Saline Township, which has fewer than 3,000 residents. He noted, however, the potential benefits, such as enhanced funding for the local fire department, schools, and community services.
As plans move forward, El-Balad will provide updates on the developments surrounding this monumental project, which promises to reshape the technological landscape of Michigan.
