Construction Begins on $16 Billion AI Data Center in Michigan Township

Construction officially began June 1 on a $16 billion AI data center known as The Barn in Saline Township, Michigan. The project, part of the Stargate initiative, will cover more than 250 acres and is backed by OpenAI, Oracle, Blackstone, Related Digital and Walbridge. Michigan Gov.

Gretchen Whitmer and OpenAI CEO Sam Altman attended the groundbreaking. Developers said the facility will create more than 2,500 union construction jobs, around 1,500 additional countywide jobs, more than 450 permanent positions and billions of dollars in tax revenue. Township officials voted against rezoning land for the project in September 2025.

Developers sued two days later. Local officials later agreed to a settlement allowing construction in exchange for roughly $14 million in community benefits that include farmland preservation, fire services, and limits on water use and noise. Opponents are challenging the settlement in court.

Related Digital said it is committed to closed-loop air cooling to protect water resources and preservation of 750 acres of farmland, wetlands and woodlands. Oracle said it will pay for all required energy and infrastructure upgrades and there will be no impact on local electricity rates or grid reliability.

A Reuters/Ipsos poll in June found only about one-third of Americans approve of the current pace of data center construction, while just 14% would support one in their own community.

At least 13 data centers are planned or under development in Michigan. Residents have stopped one project in Washington Township and delayed another in Augusta after forcing a public rezoning vote. The Trump administration is working with utilities and developers on a voluntary agreement to prevent taxpayers from footing the bill for AI's energy demands.