Why does Ann Arbor SPARK support data centers, and what does that have to do with economic development?

Washtenaw County has been home to data centers since the early 1990s. Today, the rapid growth of artificial intelligence and digital services is driving global demand for more computing infrastructure. Data center and hyperscale computing infrastructure is already established across the United States. Michigan has been slower than many peer states to attract this investment, and these projects represent an opportunity to change that.

Data centers are the 21st-century equivalent of roads, utilities, and logistics hubs. They anchor high-tech ecosystems. Without local advanced computing assets, researchers, tech startups, and growth-stage companies may increasingly look to other states to scale their companies or conduct research. We have written about the economic impact of data centers here: The Role of Data Centers.

Two distinct projects are currently under development in Washtenaw County, each with unique regional benefits:

• The Saline Township Project (Private Sector Investment): Developed by Related Digital in partnership with Oracle and OpenAI, this private-sector investment will significantly diversify the local tax base. It is projected to generate critical new revenue for the Township, County, and local school districts to fund public services and infrastructure without placing additional burdens on residential taxpayers. A detailed analysis of its fiscal impact is available here: Understanding the Fiscal Impact of the Proposed Saline Data Center.

• The Ypsilanti Township Facility (Public Research Investment): The University of Michigan’s supercomputing and AI research facility, developed in partnership with Los Alamos National Laboratory, serves a research and academic mission. The University’s $1 billion-plus investment ensures our region remains a leader in scientific discovery, allowing U-M to conduct cutting-edge work locally and attract top-tier talent to the community. More information is available here: University of Michigan Supercomputing Research.

SPARK’s role is to ensure our region remains globally competitive while actively engaging in the real complexities these large-scale projects bring. Data center developments require significant power and other infrastructure. SPARK is engaged with local utility providers and municipal leadership to help ensure these projects align with regional sustainability goals and grid reliability.

Economic development means balancing long-term prosperity with community preservation. Our focus is on ensuring these investments deliver measurable, long-term returns for Washtenaw County.

Kyri Wixom

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