OpenAI and Oracle Announce Major AI Data Center Project in Saline, Michigan
December 2, 2025
In a significant move to expand the infrastructure underpinning advanced artificial intelligence, OpenAI, the creator of ChatGPT, has partnered with technology giant Oracle to develop a massive $7 billion data center in Saline Township, Michigan. The project, announced on October 30, is poised to play a crucial role in powering next-generation AI systems, including the much-discussed "Stargate" supercomputer initiative, by supplying it with 4.5 gigawatts of power. This development underscores the intense demand for computational resources driven by the rapid evolution of AI technologies.
The planned facility is part of a wave of data center investments coming to Michigan. Another notable project involves a partnership between the University of Michigan and Los Alamos National Laboratory for a near 300,000 square-foot high-performance computing center in nearby Ypsilanti, slated to break ground on approximately 250 acres in early 2026. Michigan Governor Gretchen Whitmer hailed the Saline project as the largest economic development in the state's history, projecting it will create over 2,500 construction jobs, 450 permanent on-site positions, and an additional 1,500 jobs within the community. According to the governor's announcement, the developer, Related Digital, will also invest $14 million into local initiatives, including fire departments and a farmland preservation trust, as requested by the Saline Township Board.
Despite the promised economic benefits, the project faces scrutiny from local residents and environmental advocates concerned about its broader impact. A primary concern is the substantial resource consumption typical of large data centers, particularly water and energy. Engineering student and sustainability advocate Param Nayar explained that such facilities require vast amounts of water for cooling, which often escapes as steam, and rely heavily on energy, a potentially polluting resource. Residents also fear rising utility costs; Michelle Martinez, director of the Tishman Center for Social Justice and the Environment, cited examples where electricity costs have increased by as much as 267% per month in areas near major data center activity.
Transparency in the approval process has become a key point of contention. The local utility, DTE Energy, has requested that contracts related to the project be fast-tracked through an ex-parte proceeding with the Michigan Public Service Commission, a move that would bypass a scheduled public hearing on December 3. Martinez expressed concern that this process prevents community members from vetting claims, including assurances from Related Digital that resident utility rates will not be affected. "By skipping that part, we actually are disallowed from knowing or substantiating some of the claims," Martinez stated.
Local residents, like a University of Michigan junior from the neighboring York township who goes by Blake, echo calls for greater accountability and information. While acknowledging the project could be done correctly with environmental consciousness, Blake worries about the strain on local infrastructure, housing, and the cost of living in a historically small farm town. "I worry it could lead to disastrously high prices and push the housing bubble even higher," Blake said, hoping the development will spur more community engagement and demand for governmental accountability.
The debate in Saline reflects a national conversation balancing the economic promise of the AI boom against its tangible local costs, setting a precedent for how communities negotiate the footprint of critical digital infrastructure.
Source: michigandaily
