OpenAI, Oracle Announce Massive Stargate Campus in Michigan

TLDRs;

• OpenAI and Oracle are building a 1 GW Stargate data center in Michigan, starting construction in early 2026.
• The project is part of a $450B U.S. AI infrastructure plan involving multiple gigawatt-scale sites.
• 2,500+ union jobs will be created; all grid upgrades will be funded by the developers, not taxpayers.
• Regulatory uncertainty and community protests could delay the project pending Michigan energy commission approval.

OpenAI and Oracle have unveiled plans for a major Stargate data center campus in Saline Township, Michigan, marking another leap in their nationwide artificial intelligence infrastructure expansion.

The site, to be developed by Related Digital, will add over 1 gigawatt of computing capacity, cementing Michigan’s growing role in the global AI economy.

Construction is set to begin in early 2026, pending utility and grid approvals. Once operational, the facility is expected to create over 2,500 union construction jobs and strengthen OpenAI’s growing network of high-performance computing sites across the United States.

This Michigan development joins five previously announced Stargate campuses in Texas, New Mexico, Wisconsin, and Ohio, forming part of an ambitious $450 billion, three-year investment plan by OpenAI, Oracle, and SoftBank. Collectively, these projects will deliver over 8 gigawatts of total planned capacity, a massive energy footprint signaling the scale of AI’s infrastructure demands.

Powering the Next Generation of AI

The Michigan Stargate campus will rely on DTE Energy to provide electricity through existing transmission systems. Notably, any power grid upgrades required to accommodate the 1 GW project will be funded entirely by the developers, not local ratepayers.

The facility will also incorporate a closed-loop cooling system to minimize water consumption, a growing concern for large-scale data centers. This sustainability measure aligns with increasing scrutiny over the environmental impact of AI infrastructure.

While DTE Energy maintains that it can service the new site without straining existing capacity, public records show no formal approval by the Michigan Public Service Commission (MPSC) for such a large-scale deal. The regulator typically reviews and approves contracts involving major new industrial loads, and observers note the lack of public filings for this project raises questions about timing and transparency.

Regulatory Hurdles and Public Pushback

Michigan’s energy regulators may yet become a key factor in the project’s timeline. Community protests and environmental concerns have emerged across the state in response to recent data center proposals, with critics pointing to potential strain on local grids and water resources.

If the MPSC decides to conduct additional environmental or grid impact reviews, construction could face delays beyond the planned 2026 start. These potential bottlenecks echo challenges seen in other states where massive AI infrastructure projects have prompted local scrutiny.

Despite such hurdles, the partnership between OpenAI and Oracle continues to expand rapidly, illustrating the accelerating arms race to build AI computing capacity capable of powering large language models and generative systems on a global scale.

Michigan’s Renewable Energy Push

Amid this surge in energy-hungry AI infrastructure, Michigan is also racing to expand its renewable energy capacity. DTE Energy has issued a Request for Proposals (RFP) for 450 MW of standalone energy storage, with bids due by June 27, 2025, and contracts expected by Q1 2026, coinciding with the Stargate project’s groundbreaking.

The utility is already developing the 220 MW Trenton Channel battery project, targeting 2,950 MW of energy storage by 2042. State law now mandates 60% renewable energy by 2035 and 2,500 MW of storage capacity by the end of the decade, underscoring the state’s effort to align industrial growth with climate goals.

For renewable developers, this timeline offers an opportunity to integrate into the growing AI-driven energy ecosystem, one where massive data centers like Stargate are set to define new baselines for power demand and sustainability.

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