OpenAI, Oracle, and Related Digital have announced plans to build one of the largest new data center campuses in the United States – a more than one-gigawatt facility in Saline Township, Michigan. The multi-billion-dollar project marks a significant expansion of the partnership between OpenAI and Oracle, which previously unveiled ambitions to add 4.5 gigawatts of total capacity under their Stargate initiative.
Construction on the Michigan data center site is slated to begin in early 2026, pending regulatory approval.
For the three companies involved, the development represents both a technological and strategic milestone. OpenAI and Oracle continue to accelerate the build-out of large-scale AI infrastructure capable of supporting the next generation of generative models, while Related Digital – a vertically integrated data center developer and investment platform – positions itself as a key enabler of hyperscale growth.
The Michigan project is intended to anchor Oracle’s growing AI-ready cloud capacity in North America and further the broader national effort to localize AI compute infrastructure.
“This historic, multi-billion-dollar investment will ensure that Michigan plays a leading role in developing the digital infrastructure American companies need,” said Jeff T. Blau, CEO of Related Companies and chairman of Related Digital. “We are proud to be developing this critical project exclusively for Oracle and contributing to keeping our nation competitive in the global AI race.”
OpenAI described the initiative as part of a deliberate effort to expand AI infrastructure beyond traditional coastal hubs and into regions with strong industrial and energy capabilities. “By expanding Stargate to Michigan, we can strengthen domestic supply chains, create good jobs, and help more communities share in the economic opportunities AI is creating,” said Peter Hoeschele, OpenAI’s Vice President of Industrial Compute.
For Oracle, which is aggressively scaling its cloud infrastructure footprint to meet surging AI demand, the Michigan campus is another step toward building geographically distributed capacity. “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,” said Mahesh Thiagarajan, executive vice president at Oracle Cloud Infrastructure.
Energy Strategy, Water Efficiency
The Saline Township project is being financed through a consortium of private investors and financial institutions. During construction, it is expected to generate more than 2,500 union jobs, with an estimated 450 permanent on-site positions once operational. Related Digital and Oracle anticipate another 1,500 county-wide jobs tied directly to the facility’s operation, along with several thousand indirect roles supporting regional supply chains.
The new campus will occupy roughly 250 acres and feature three single-story buildings, each about 550,000 square feet in size. Designed under the working name The Barn – a nod to a preserved red barn that will remain near the Michigan Avenue entrance – the development will pursue LEED certification and include minimum 75-foot setbacks with extensive landscaping and screening.
Energy strategy has been a key component of the project’s planning. DTE Energy will supply 100 percent of the site’s power using existing generation assets supplemented by new battery storage built and financed as part of the development. According to DTE, this arrangement will ensure there is no negative impact on existing customers’ energy supply or rates, while the project’s contribution to grid maintenance will help stabilize long-term costs.
Water efficiency is also central to the design. The facility will use a closed-loop cooling system, limiting daily water consumption to levels comparable to those of a large office building – an increasingly critical factor in hyperscale site design as data centers expand into regions managing finite water resources.
Walbridge, a century-old Detroit-based construction firm, will serve as the project’s general contractor. Brent Behrman, CEO of Related Digital, emphasized his company’s experience delivering large-scale data centers for hyperscalers on time and on budget, adding that the team expects to break ground in early 2026, pending approval from the Michigan Public Service Commission.
Discover more from WIREDGORILLA
Subscribe to get the latest posts sent to your email.
