Real Estate Firm Eyes Toyota Land in Michigan for Potential Hyperscale AI Data Center
December 3, 2025
A major new hyperscale data center project, potentially requiring up to one gigawatt of power, is under preliminary consideration for a rural site south of Ann Arbor, Michigan, highlighting the intense competition for suitable land and energy resources to fuel the artificial intelligence boom.
The St. Louis-based Sansone Group is exploring the purchase of approximately 412 acres of land currently owned by Toyota Motor North America in York Township. The property, listed for sale at over $22.6 million and zoned as a research park, is situated across from Toyota's North American R&D headquarters. While no formal development proposal has been submitted to township authorities, discussions have taken place, according to meeting minutes.
If realized, this would become the fourth major AI computing facility proposed within Washtenaw County in recent months, joining projects in Saline, Augusta, and Ypsilanti townships. The scale of the potential development is significant; preliminary discussions noted the facility could demand as much as one gigawatt of electricity, an amount sufficient to power roughly 750,000 homes. Details on cooling methods, whether air or water-based, remain undetermined.
The involvement of a specific technology company as an anchor tenant is not yet known. However, the trend in Michigan has seen other hyperscale proposals backed by industry giants like Meta, OpenAI, and Oracle. Toyota spokesperson Rick Bourgoise confirmed an interested potential buyer is conducting due diligence, with a potential sales contract possible sometime in 2026.
Local officials have been tight-lipped due to confidentiality agreements. York Township Deputy Supervisor David Ludwig stated, “We have basically a non-disclosure agreement in place,” when asked about Sansone’s plans. Township Supervisor Chuck Tellas had previously reported the group's interest and a signed escrow agreement with Toyota, with early concepts including a 200-acre development at a key intersection featuring a large lake.
The prospect of another massive data center is already drawing scrutiny from community advocates concerned about concentrated regional impacts. Sarah Braggs, a York Township resident involved in opposing a separate OpenAI and Oracle project in nearby Saline Township, voiced broad concerns. “My biggest concern is the proximity to other projects and the way resources would be tapped or drained,” she said, citing water systems, energy grids, and ecosystems. Braggs plans to monitor the process closely, encouraging attendance at upcoming township meetings, and expressed trust that local officials would seek public input before moving forward.
The series of proposals in southeastern Michigan underscores the critical infrastructure challenges—from power procurement to water usage and community relations—that accompany the rapid expansion of AI-dedicated data centers.
Source: mlive
