Saline data center brings out bigwigs. Big day for Michigan or big betrayal?

Developers and state officials celebrated the $56 billion data center near Saline on Monday
The project is one of the largest infrastructure projects in the United States
Gov. Gretchen Whitmer touted the investment and 450 jobs it’s expected to create

Leaders of tech companies behind a blockbuster data center project in Saline Township gathered Monday for a ceremonial groundbreaking of what they say is one of the largest artificial intelligence projects in the world.

The $56 billion complex, known as The Barn, will be completed at the end of 2027. Operations should start in early 2028.

The facility is “one of the largest infrastructure investments happening anywhere in the United States today,” Related Co. CEO Jeff Blau said during the event.

He and OpenAI CEO Sam Altman attended the groundbreaking with Gov. Gretchen Whitmer, business leaders and others who touted the investment as a win for Michigan and perhaps the world.

Michigan Gov. Gretchen Whitmer with AI leaders at a press conference. — Michigan Gov. Gretchen Whitmer called the Saline data center ‘phenomenal’ during Monday’s groundbreaking. Also speaking were Sam Altman, CEO of OpenAI, and Oracle CEO Clay Magouyrk . (Screenshot courtesy of WXYZ-TV)

“This could very well turn into the site where cancer gets cured,” Altman said.

He and others acknowledged public opinions about artificial intelligence could be better. A recent NBC News poll showed 57% of registered voters nationwide believe the risks outweigh the benefits.

“We still don’t think the world has appreciated how much AI every person and every business is going to want,” Altman told CNBC.

Here is more to know

This data center will be the largest in Michigan

Work started this spring. The developer is the Related Companies, the global real estate firm founded by University of Michigan graduate and donor Stephen Ross. It’s being built for Oracle [NYSE: ORCL], the $700 billion IT and software company, and its customer OpenAI.

The scope of the project is “remarkable,” Blau told CNBC ahead of the event. Facilities include the core building, three data halls and two building “pads” for substations, Blau said.

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The data center will occupy about one-third of Related-acquired 700 acres formerly used for farming near Saline, a community of 2,300 southwest of Ann Arbor. The data center will use 1.4 gigawatts of power — the equivalent of a nuclear reactor — and will generate more data in a single day than many traditional centers do in months.

State officials have said the project is expected to create around 450 jobs.

The project has a national relevance

The data center is part of the $500 billion Stargate plan to build out United State artificial intelligence infrastructure.

Announced by President Donald Trump in 2025, Stargate investors — including SoftBank, OpenAI, Oracle and MGX — are making what experts call among the largest private computing and data center projects in history

Besides the Michigan project, other related centers are built or planned in three sites in Texas; New Mexico; Lordstown, Ohio; and Port Washington, Wisconsin.

Oracle CEO Clay Magouyrk said Monday that the Saline Township project is “big in all the ways.”

“In terms of the construction, it’s big in terms of the amount of people that are working on it, (and) it’s big in terms of the impact that’s in the world,” Magouyrk told CNBC.

The data center was announced as a $7 billion investment, but that grew to $16 billion today just for the construction and development and another $40 billion for Oracle to outfit buildings .

The project remains controversial

Protests continue against many proposed data centers in Michigan, despite backing from business leaders and Whitmer.

The state offers a 6% tax break on sales and use taxes for construction and equipment purchases if a data center qualifies by investing $250 million and meeting other criteria. Some lawmakers are trying to repeal the tax break.

“Just a complete betrayal of the working class,” Rep. Dylan Wegela, D-Garden City and a sponsor of the repeal, wrote on X after Monday’s groundbreaking.

Saline Township officials had voted against the rezoning for the project, but last fall settled the lawsuit to clear the way for the project. That move remains locally controversial.

Whitmer called the data center “phenomenal” and a “huge, huge undertaking.”

“None of this happens without consequences,” Oracle’s Magouyrk said as he thanked Saline Township for hosting the site.

The deal came with community benefits, including $4 million for a township farmland preservation trust fund and $8 million for area fire services. The project is also donating $10 million to the Saline Recreation Center to expand its aquatic center.

Firms estimate the project will generate $150 million a year in taxes, about 2,000 times as if the property remained farmland.