A Major Step Forward for Michigan’s Economy
The OpenAI Stargate facility, developed by Oracle and Related Digital, will be one of the most advanced AI infrastructure sites in the country. It represents the next generation of 21st-century infrastructure—powering artificial intelligence, cloud computing, and advanced manufacturing.
As part of Oracle and OpenAI’s 4.5-gigawatt Stargate expansion, which includes six other U.S. sites, the project contributes to building a national backbone for AI infrastructure, bringing total planned capacity to more than 8 gigawatts and over $450 billion in investment over the next three years.
Michigan was selected for its skilled construction and tech workforce, strong infrastructure, and the talent pipeline anchored by Washtenaw County’s universities. The development will create thousands of union construction jobs and hundreds of ongoing high-skill positions, deepening the region’s role in the growing innovation economy.
Designed for Efficiency and Stewardship
This more than one-gigawatt facility will operate without the need for new power generation, drawing on existing transmission capacity. It will use a closed-loop cooling system that minimizes water consumption and preserves natural resources. More than 700 acres of open space — including farmland, wetland, and forest — will remain protected, maintaining the rural character that residents value. A Michigan Department of Transportation review found the project will have minimal traffic impacts, receiving an “A” rating.
DTE Energy, which will serve the facility, has confirmed that data center development in its service territory will not increase customer rates. Recent legislation ensures that Michigan customers will not subsidize electric costs for data centers. DTE and the developer have structured this project so that the data center absorbs all new costs required to serve its operations, including DTE’s planned grid improvements and energy storage investments. These investments strengthen overall system reliability and help ensure continued affordable, dependable service for all DTE customers.
Community Benefits and Local Investment
Through negotiations between Saline Township and Related Digital, the project includes a $12 million community benefits package that delivers direct, measurable value to local services and residents. These commitments ensure that public safety, local amenities, and land preservation remain front and center as the project moves forward.
Fiscal Impact and Long-Term Value
At full buildout, the data center is projected to generate millions of dollars annually in property taxes supporting schools and local services. That includes millions each year dedicated to the Saline Area Schools and Washtenaw ISD through existing millages — creating reliable, ongoing funding for education while easing the tax burden on local homeowners.
A stronger tax base also means broader community benefits over time. Revenues from projects of this scale help sustain essential services like libraries, infrastructure, and emergency response, while positioning the township for stable, long-term financial health.
SPARK’s Role in Supporting Community Understanding
Throughout the process, Ann Arbor SPARK has worked to help local leaders and residents understand the fiscal and economic dimensions of the proposed project. Our team has collaborated with DTE Energy and Related Digital to analyze tax impacts, clarify infrastructure details, and ensure that community concerns were addressed transparently.
SPARK has also coordinated informational tours of other U.S. communities that host data centers, helping township officials and stakeholders see how similar projects have been integrated responsibly. In addition, SPARK has participated in public meetings, provided context on economic modeling and job projections, and helped project-manage the flow of information between partners.
This work reflects SPARK’s broader mission—to serve as a regional resource that connects businesses, utilities, and communities in ways that foster understanding and balanced growth.
A Balanced Path Forward
Ann Arbor SPARK understands that projects of this size bring important questions about land use, sustainability, and community priorities. We’re encouraged by the thoughtful dialogue that has taken place between residents, local officials, and the developer to reach a solution that balances growth with local character and shared benefit.This project demonstrates how Washtenaw County can attract global-scale investment while maintaining a focus on community values and environmental stewardship. It’s a rare opportunity, one that connects our local strengths to the broader innovation economy and helps ensure our region continues to grow thoughtfully and sustainably, with balanced economic growth that depends on 21st infrastructure.
