OpenAI to Build Major Data Center on Ann Arbor Farmland
A major development is underway in Michigan as OpenAI collaborates with Oracle and Related Digital to build a significant data center outside Ann Arbor. This project, named “The Barn,” is set to occupy 250 acres in Saline Township, with construction expected to start in 2026, pending regulatory approvals. The Michigan Public Service Commission is anticipated to review the proposal shortly.
Project Overview
The data center, touted as a “hyperscale” facility, will require substantial energy resources, projected to demand about 25% more energy than current local supply. The facility is expected to create thousands of jobs and further advance Michigan’s role in the tech industry.
Key Facts and Figures
- Location: Saline Township, outside Ann Arbor, Michigan
- Size: 250 acres
- Start Date: 2026 (pending approval)
- Jobs Created:
- 2,500 construction jobs
- 450 permanent high-paying jobs
- 1,500 additional community jobs
- Energy Requirement: 1.4 gigawatts
Regulatory and Community Impact
The project faced initial opposition from local officials, leading to a lawsuit that was ultimately resolved allowing development to proceed. Governor Gretchen Whitmer emphasized the project’s significance, describing it as the “largest economic project in Michigan history.”
Concerns about increased energy demand, water use, and traffic have been raised by residents and environmental advocates. However, the developers plan to implement a closed-loop cooling system to minimize water consumption.
Community Benefits
The project promises various community benefits, including:
- Support for local fire services
- Additional funding for township schools
- Benefits for local cemeteries
Energy Management and Legislation
In response to the energy needs of the data center, DTE Energy has asserted that it can meet the supply demands without raising customer rates. Recent legislation has exempted data centers from certain taxes until 2028, facilitating growth in this sector.
DTE plans to create energy storage systems that will enable the utility to manage peak energy demands effectively. This initiative is designed to ensure that existing customers will not bear additional costs associated with the data center’s energy usage.
Community Engagement
Following community concerns, informational meetings were held to address questions from residents about the project. Developers assured the public that noise levels would remain below 65 decibels, minimizing disturbance to the local community.
The development of this data center reflects a strategic move to bolster Michigan’s position in the competitive landscape of artificial intelligence and technological innovation. As this project progresses, it is expected to reshape the economic fabric of the region.
