Massive AI Data Center Moving Forward in Rural Michigan

Plans for a large new data center in Michigan are advancing quickly, only a few months after first surfacing. Developer Related Digital is moving forward with a 2.2-million-square-foot facility for OpenAI and Oracle in Saline Township, a rural community south of Ann Arbor.

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State leaders, including Gov. Gretchen Whitmer, have highlighted the project as the largest one-time investment in Michigan’s history. It comes with an agreement from DTE Energy to supply enough electricity to power more than a million homes.

Project Details and Timeline

Construction is expected to begin soon after the new year and wrap up in 2027. Supporters point to projected tax revenue, jobs, and infrastructure improvements. Related Digital estimates at least $1.6 million in annual township taxes and more than $10 million a year for local schools.

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The company also pledges low water usage through a closed-loop cooling system. Industry representatives say the project is needed to meet the rapid growth of cloud computing and artificial intelligence.

Township Response and Lawsuit

Many residents and advocates, however, are concerned about the speed, size, and possible impact on the rural community. Township leaders initially denied a rezoning request, but the developer and property owners sued.

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Officials later agreed to a settlement allowing the project to move forward, with funding included for fire departments, land preservation, and community projects. Township leaders say a legal fight would have been too costly for local taxpayers.

Utility Demand and DTE Review

DTE is urging fast approval from state regulators for special contracts needed to serve the facility’s 1.4-gigawatt demand, similar to the output of a nuclear plant. While DTE says spreading grid costs will benefit ratepayers, groups want more transparency. Environmental advocates are also watching how increased electricity demand and water use at regional power plants may affect Michigan’s long-term energy and environmental planning.