October 30, 2025
SALINE TOWNSHIP, Mich. – In a move poised to shape the state's economic and technological future, a partnership led by developer Related Digital, tech giant Oracle, and ChatGPT creator OpenAI plans to construct a massive hyperscale data center on farmland near Ann Arbor.
The planned 250-acre campus, dubbed "The Barn," is slated for construction starting in 2026, pending final approval from the Michigan Public Service Commission (MPSC). The project, announced Thursday, follows a legal dispute in which Related Digital sued Saline Township over initial zoning opposition. The township board ultimately allowed the project to proceed, averting a court battle.
Jeff T. Blau, CEO of Related Companies and Chairman of Related Digital, hailed the initiative in a statement as a "critical project" that will "ensure that Michigan plays a leading role in developing the digital infrastructure American companies need." While the total cost was not disclosed, Blau referred to it as a "historic, multi-billion-dollar investment."
The facility's energy demands are colossal, requiring 1.4 gigawatts of power—approximately 25% more than utility provider DTE Energy Co. currently supplies to all its customers. DTE spokesperson Jill Wilmot stated the utility has excess capacity and will be able to meet the demand as it ramps up over the next two to three years.
Michigan Governor Gretchen Whitmer endorsed the project, calling it the "largest economic project in Michigan history." In a statement, she said the facility would create "2,500 good-paying union construction jobs, more than 450 permanent high-skill, high-paying jobs on site, and 1,500 more in the community."
Addressing Environmental and Community Concerns
The project has not been without controversy. Data centers are known for their intensive consumption of energy and water for cooling, raising concerns from environmental groups and residents.
Tim Minotas, a lobbyist for the Sierra Club Michigan, warned that data centers "can pose a threat to our neighborhoods, our economy, energy bills, water, and climate without proper guardrails in place."
Developers and officials have sought to allay these fears. The data center will employ a closed-loop cooling system, which developers claim will "limit daily water use to levels comparable to an office building." State Rep. Morgan Foreman, a Democrat representing the district, said she had initial reservations about water use but now believes sufficient precautions will be taken.
Crucially, DTE Energy CEO Joi Harris asserted that "data center development in DTE’s electric service territory will not increase customer rates." She cited recent Michigan legislation that prevents residential customers from subsidizing data center energy costs. The data center will pay for new DTE energy storage systems, which will help manage grid strain during peak hours. A controversial law passed late last year also exempts data centers from sales and use taxes through 2028.
A Transformative Change for a Rural Community
The project represents a significant shift for the agricultural community of Saline Township, which has fewer than 3,000 residents. Ronald Kohler, a member of the township’s Planning Commission and a local farmer, reluctantly supported the project after the legal threat.
“It’s a beautiful property,” Kohler said, acknowledging the community's initial resistance. “That was the big stink. But it is what it is. We’ll deal with it. I think it will be good for the community.”
He cited anticipated benefits, including increased funding for local schools, the fire department, and the cemetery, with minimal added traffic to the nearby U.S. 12 highway.
At recent township meetings, dozens of citizens voiced their questions and concerns. Representatives from Related Digital assured residents that construction would not involve temporary housing and that noise would be limited to 65 decibels, a level considered safe for human hearing. They cited the property's flat terrain and convenient highway access as key reasons for selecting the site.
DTE plans to file a formal request with the MPSC on Friday for permission to provide energy to the facility and construct the accompanying energy storage system. More details on the agreement are expected to be released at that time.
Source: detroitnews
