Copyright Newsweek
Michigan was selected for a multi-billion-dollar OpenAI Stargate project which will bring thousands of jobs to the state, Governor Gretchen Whitmer announced on Thursday. The new AI data center, which will have a 1 gigawatt computing capacity, will be built in Washtenaw County’s Saline Township, authorities and the companies involved said. It is the largest one-time investment in Michigan’s history, according to the Democratic governor. Why It Matters AI is expected to revolutionize the global economy, driving future growth, and the U.S. has positioned itself as a leader in the sector. The country’s private investment hit $109.1 billion in 2024, nearly 12 times higher than China’s $9.3 billion, according to Stanford researchers. At the same time, investment in data centers able to support the demand for processing AI has also grown. While investments such as the one in Michigan can create jobs and put the state at the heart of the modern digital economy, strengthening its cyber resilience, there are downsides to hosting them, as they are known to suck up a lot of energy to the expense of local infrastructure and the environment. What To Know The new advanced technology facility—which is expected to become one of the most advanced AI infrastructure sites in the country—will be built by Open AI, Oracle and New York-based real estate developer Related Digital, according to Whitmer. Dubbed the "The Barn" for the historic red barn being preserved by the entrance to the site off Michigan Avenue, the facility will consist of three 550,000 square-feet single-story buildings. While these sorts of projects are often criticized for their intense energy use and negative impact on the environment surrounding them, Whitmer has described the project as "one of the most advanced" in its use of land, water, and power. The facility will use a "closed loop water system" that will not require any additional water from the Great Lakes to operate, the governor said in a press release. It would also preserve "more than 700 acres of open space that will be retained and used as farmland, wetland, and forest." Related Digital also plans to invest an additional $14 million in local initiatives requested by the Saline Township Board, including a farmland preservation trust. The project, according to Whitmer, will create more than 2,500 union construction jobs, more than 450 jobs on site and 1,500 more across the county. The governor did not disclose the exact amount of the investment. Newsweek contacted Michigan House Speaker Matt Hall, R-Richland Township, for comment by email on Friday morning. What People Are Saying Whitmer said in a press release: "I’m grateful to these cutting-edge companies for betting on Michigan, building on our work to compete for and win big projects in next-generation industries from cars and clean energy to semiconductors and batteries." She added: "We will continue working together at the state level to win more projects so we can create even more good-paying, local jobs for Michiganders and grow our economy." Peter Hoeschele, OpenAI’s vice president, said in a statement: "This project will help ensure Michigan is a key part of building the AI infrastructure that will power the next generation of American innovation." Jeff Blau, CEO of Related Cos., said in a statement: "We are proud to be developing this critical project exclusively for Oracle and contributing to keeping our nation competitive in the global AI race." Mahesh Thiagarajan, executive vice president, Oracle Cloud Infrastructure, said in a press release: "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." What Happens Next Construction for the data center of more than 1 gigawatt on 250 acres in Saline Township, Michigan, is set to begin in early 2026—pending approval by the Michigan Public Service Commission. There are not yet any details on when the project might be completed.
