Michigan Braces for Continued Data Center Expansion and Community Pushback in 2026
January 3, 2026
The race to build hyperscale data centers to power the artificial intelligence boom shows no signs of slowing in Michigan for 2026, setting the stage for continued clashes between technology giants, developers, and local communities concerned about land use, energy consumption, and transparency. The most advanced project involves a sprawling 2.2-million-square-foot facility in Saline Township, a joint venture for OpenAI and Oracle dubbed "Stargate." Following a lawsuit settlement that allowed the project to proceed, preliminary site work has begun on approximately 250 acres of rezoned farmland. The facility's massive power demand, requiring 1.4 gigawatts—enough to power over a million homes—recently gained conditional, fast-tracked approval from the Michigan Public Service Commission (MPSC). However, the approval came with stringent conditions requiring utility DTE Energy to ensure the data center covers all associated costs, shielding other ratepayers. Despite the settlement, local opposition persists, with residents filing appeals to halt work and a neighbor seeking to intervene in the now-settled lawsuit. Some township officials have defended their decision to settle, citing the potential for "massive financial repercussions" in a prolonged court battle. Meanwhile, Meta Platforms Inc. is reassessing its strategy after a proposal for a data center on over 1,000 acres in Howell Township was withdrawn ahead of a key vote. The developer, representing the Van Gilder farming family which owns most of the land, stated they "heard from many of you that more study was needed" and would honor the township's six-month moratorium on new data center applications. The family's statement emphasized their role as "good stewards" of the land for generations. In Augusta Township, the decision over rezoning 522 acres for a data center by an undisclosed tech giant will be decided directly by voters. A citizen group, Protect Augusta Charter Township, successfully petitioned to place the issue on the 2026 ballot, collecting over 800 signatures. The township board had previously approved the rezoning unanimously, but only for data center use. Other potential developments are simmering. In York Township, the St. Louis-based Sansone Group is considering purchasing more than 400 acres from Toyota, though no formal data center proposal has been submitted, prompting some residents to call for a preemptive moratorium. Additionally, the University of Michigan's planned $1.2 billion high-performance computing facility with Los Alamos National Laboratory faces political headwinds. While site selection between parcels in Ypsilanti Township continues, a state legislator has introduced a bill to rescind a $100 million state grant for the project, which Ypsilanti Township officials support due to what they call a "lack of transparency" regarding land acquisition. University officials dispute this, stating they are conducting due diligence and that the legislation is based on "inaccurate information." The collective influx of projects is driving communities without active proposals to proactively establish local regulations and moratoriums, signaling that the debate over data center expansion will remain a defining issue for Michigan's landscape and communities throughout the coming year. Source: mlive
