OpenAI’s Huge Data Center in Michigan Marks the Start of a New AI Era

OpenAI Data Center in Saline Township, Michigan, is confirmed by officials! In what officials are calling the largest economic project in Michigan’s history, tech giant OpenAI, in partnership with Oracle and Related Digital, has announced plans to build a multi-billion-dollar data center campus on farmland near Ann Arbor. The massive project, named OpenAI Stargate, represents a monumental step in America’s race to lead the global AI infrastructure revolution.

OpenAI Data Center Open in Michigan: Key Highlights

Announcement DateOctober 30, 2025
Project NameStargate Michigan Campus
LocationSaline Township, Michigan, USA
Developer PartnerRelated Digital
Strategic PartnersOracle, SoftBank
Investment ValuePart of $450 billion total Stargate investment (toward $500B, 10GW goal)
Power Capacity1.4 gigawatts (DTE Energy supplying existing excess capacity)
Campus Size250-acre hyperscale data center campus
Construction StartEarly 2026
Jobs Created2,500 union construction jobs, plus indirect employment
Sustainability FeaturesClosed-loop cooling (reduced water use), farmland preservation, funded energy upgrades (no local ratepayer impact)
PurposeStrengthen U.S. AI infrastructure and reindustrialization in the Midwest
Other Stargate LocationsTexas, New Mexico, Wisconsin, and Ohio (previously announced)
GoalExpand AI capacity to 8+ GW nationwide, fueling next-gen AI systems
Official SourceOpenAI Newsroom – “Expanding Stargate to Michigan”

$7 Billion Hyperscale Campus

The new facility, spanning over 250 acres in Saline Township, will become Michigan’s first hyperscale data center — a high-capacity complex capable of processing the vast computing power needed for artificial intelligence models, cloud services, and data-intensive operations.

According to the developers, the campus will feature three buildings of 550,000 square feet each, built with advanced cooling and energy systems. The project is slated to begin construction in 2026, pending approval from the Michigan Public Service Commission.

“This historic, multi-billion-dollar investment will ensure Michigan plays a leading role in building the digital infrastructure America needs,” said Jeff T. Blau, CEO of Related Companies and chairman of Related Digital.

Largest Economic Project in State History

Governor Gretchen Whitmer praised the announcement, calling it a “transformational project that puts Michigan at the center of the AI revolution.”
She emphasized the scale of the initiative, noting that it will create:

  • 2,500 union construction jobs
  • 450 permanent, high-paying tech positions
  • 1,500 additional community jobs

“This investment from OpenAI, Oracle, and Related Digital sends a clear message — if you want to build the future, you can build it in Michigan,” Whitmer said in a statement.

Powering the Future — Without Burdening Consumers

The hyperscale facility will require 1.4 gigawatts of electricity — roughly 25% more energy than what DTE Energy currently supplies to all its existing customers.

However, DTE Energy confirmed that it has excess capacity and will support the project using newly installed battery storage systems, ensuring no increase in residential energy rates.

“Most importantly, this data center will not raise customer bills,” said Joi Harris, CEO of DTE Energy. “Our customers will not subsidize its energy costs.”

As part of the agreement, DTE will install new grid-scale energy storage to manage peak loads and maintain stability, funded entirely by the data center developers.

Environmentally Conscious Development

While large data centers have drawn criticism nationwide for their high energy and water use, developers of the OpenAI Stargate campus said the project will incorporate a closed-loop cooling system, minimizing daily water consumption to levels comparable to an office building.

Additionally, officials stated that over 700 acres of surrounding land will be preserved as farmland, wetlands, and forest, ensuring minimal environmental disruption.

State Representative Morgan Foreman said she initially had concerns about water usage but now supports the project, citing “strong environmental safeguards and significant community benefits.”

Community Investment and Local Impact

Beyond jobs and technology growth, the OpenAI Stargate project promises a $14 million community investment fund, directed toward:

  • Local fire departments
  • Township schools and infrastructure
  • Farmland preservation trust

The project is also expected to bring millions in new tax revenue and funding for public services in Saline Township.

Residents had initially expressed concerns over rezoning the farmland, but township officials approved the development after the company agreed to concessions and sustainability measures.

Ronald Kohler, a longtime resident and planning commissioner, said, “It’s a big change for our farming community, but I believe it will bring opportunity. You can’t live in the horse-and-buggy days anymore.”

Michigan’s New AI Gateway

The new data center represents a cornerstone in OpenAI’s Stargate network, an advanced infrastructure plan to support AI training and cloud operations across North America. The project underscores Michigan’s growing reputation as a hub for high-tech investment, joining other industries like EV manufacturing, semiconductors, and clean energy.

Industry analysts estimate the Michigan facility’s total value to exceed $7 billion, with potential to attract additional tech partnerships and spin-off innovation clusters in the region.

“Michigan’s strong universities, skilled workforce, and new pro-tech legislation made this the perfect location,” said Peter Hoeschele, Vice President at OpenAI. “This project will help build the AI infrastructure powering the next generation of innovation.”

Future expectations

Construction on the OpenAI Stargate site is expected to begin in 2026, with completion projected around 2028. Once operational, the site will serve as a critical node in OpenAI’s computing backbone, supporting massive model training, enterprise AI applications, and Oracle’s expanding cloud services.

As Michigan positions itself at the forefront of technological advancement, the Saline Township project stands as a symbol of how AI, energy, and community growth can converge to define the next era of American innovation.

Here are 4 well-written, relevant FAQs tailored for technical professionals, data center engineers, and AI infrastructure enthusiasts — directly related to OpenAI’s Stargate Michigan announcement.

More news on OpenAI here!

FAQs: OpenAI’s Stargate Michigan Data Center Expansion

What is OpenAI’s Stargate project, and why is it significant for the AI industry?

Stargate is OpenAI’s nationwide hyperscale data center initiative designed to power next-generation AI models like GPT-5 and beyond. It’s one of the largest AI infrastructure projects in U.S. history, targeting over 10 gigawatts of compute capacity and $500 billion in total investment. The Michigan campus is a key addition that accelerates this expansion while supporting U.S. reindustrialization.

Why did OpenAI choose Michigan for this new data center campus?

Michigan’s engineering legacy, skilled labor force, and strong energy infrastructure made it a strategic choice. The state also offers existing excess power capacity through DTE Energy, minimizing local grid impact. Plus, the Midwest location supports regional diversity and improves redundancy across OpenAI’s AI network.

How is the Stargate Michigan campus designed for sustainability and efficiency?

The 250-acre site will use a closed-loop cooling system, drastically reducing water usage compared to traditional data centers. It also includes farmland preservation initiatives and ensures that any required grid upgrades are privately funded, avoiding costs to local ratepayers. The design prioritizes energy efficiency, reliability, and minimal environmental impact.

What kind of technical opportunities or innovations might this project create?

The Stargate Michigan buildout will generate opportunities in AI compute engineering, cloud operations, electrical and thermal systems, and renewable energy integration. It’s also expected to serve as a model for next-gen data center architectures, combining high-density compute with green power management — a major step toward sustainable AI scaling.





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