October 30, 2025
SALINE TOWNSHIP, Mich., Oct 30 (Reuters) - OpenAI, in partnership with Oracle and developer Related Digital, announced plans on Thursday to construct a massive data-center campus in Michigan with a capacity exceeding one gigawatt, a key component of their "Stargate" initiative to dramatically expand U.S. artificial intelligence infrastructure.
The project, set for Saline Township, highlights the AI industry's insatiable demand for computing power as companies race to develop technology that can match or exceed human-level intelligence.
While the companies confirmed the venture represents a multi-billion dollar investment, they did not disclose an exact figure. Industry analysts estimate that one gigawatt of computing power, enough to energize approximately 750,000 American homes, can carry a price tag of around $50 billion. Construction is scheduled to commence in early 2026.
This facility is a central piece of a broader 4.5-gigawatt Stargate expansion planned by OpenAI and Oracle. When combined with six other planned U.S. sites, the overall infrastructure push will raise the group's total planned capacity to over 8 gigawatts, representing a total investment exceeding $450 billion over the next three years.
OpenAI stated that this move keeps the Stargate project ahead of schedule to meet its long-term commitment of investing $500 billion to achieve 10 gigawatts of capacity. The startup has provided few specifics on how it intends to fund this monumental spending.
The announcement comes on the heels of a significant corporate restructuring at OpenAI earlier this week, which freed the ChatGPT maker to operate further from its nonprofit origins. Reuters has previously reported that the company is pursuing a funding round that could value it at up to $1 trillion.
However, the soaring valuations of AI firms and their colossal spending pledges, which total more than $1 trillion for OpenAI alone, have stoked concerns that the AI boom may be inflating into an economic bubble.
OpenAI confirmed that Related Digital will lead the development of the Michigan project, which is anticipated to create more than 2,500 union construction jobs.
"This project will help ensure Michigan is a key part of building the AI infrastructure that will power the next generation of American innovation," said Peter Hoeschele, OpenAI's vice president of industrial compute.
Source: reuters
