OpenAI, Oracle and Related Digital Plan Major AI Data Center in Michigan
OpenAI, Oracle, and Related Digital have announced plans to build a massive data center campus in Saline Township, Michigan. This new project is part of their Stargate initiative, aimed at expanding artificial intelligence infrastructure across the United States.
The Michigan campus will have a capacity of over 1 gigawatt (GW), making it one of the most powerful data centers in the world. Construction is expected to begin in early 2026.
Part of a $450 Billion Expansion Plan
This project is a major step in the broader 4.5-GW Stargate expansion, which includes six other data center sites across the United States. Together, these projects will push the group’s total capacity beyond 8GW and total investments above US$450 billion within the next three years.
OpenAI said that with this development, Stargate remains ahead of schedule to meet its goal of 10GW of AI infrastructure and a total investment of around US$500 billion.
Although the companies did not reveal the exact investment for the Michigan site, industry experts estimate that a 1GW data center could cost roughly US$50 billion, equivalent to the energy needed to power 750,000 US homes.
Strengthening AI Capabilities in the US
The Michigan data center will serve as a key facility to handle the growing demand for computing power needed for advanced AI systems. OpenAI said that Related Digital will be responsible for developing the project.
The construction will also bring a significant boost to the local economy by creating more than 2,500 union construction jobs in Michigan.
Peter Hoeschele, OpenAI’s Vice President of Industrial Compute, said,
“This project will help ensure Michigan is a key part of building the AI infrastructure that will power the next generation of American innovation.”
A Step in OpenAI’s Rapid Expansion
Earlier this week, OpenAI completed a corporate restructuring that allows it to operate more freely from its nonprofit roots. Reports suggest the company may be preparing for an initial public offering (IPO) that could value it at up to US$1 trillion.
This rapid expansion reflects the company’s growing ambition but also raises concerns about the sustainability of the AI boom. Analysts warn that the trillion-dollar commitments across the AI sector could lead to an economic bubble if the technology fails to deliver the expected returns.
What the Stargate Project Means
The Stargate project represents a strategic effort to build the infrastructure backbone for next-generation AI technologies. OpenAI, Oracle, and Related Digital are focusing on ensuring that the US remains a global leader in AI development by investing heavily in computing power and innovation hubs.
With its enormous scale and long-term vision, Stargate aims to make the US the epicenter of AI progress, creating jobs, driving research, and powering advanced machine learning systems for decades to come.
FAQs
Q1. Where will the new AI data center be located?
A. It will be built in Saline Township, Michigan, as part of the Stargate expansion project.
Q2. How large will the data center be?
A. The facility will have a 1-gigawatt (GW) capacity, one of the largest in the world.
Q3. How much will the project cost?
A. While the exact cost was not disclosed, industry estimates suggest it could be around US$50 billion.
Q4. When will construction begin?
A. Construction is scheduled to start in early 2026.
Q5. How many jobs will the project create?
A. The project is expected to create over 2,500 union construction jobs in Michigan.
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