Oracle, a database software and cloud computing provider, has partnered with OpenAI, an artificial intelligence research organization, to construct a data center campus in Saline Township, Michigan.
The multibillion dollar development, known as The Barn, represents the largest single economic investment in the history of the state. Related Digital, a digital infrastructure development firm, and Blackstone, a real estate investment company, are providing equity for the project. PIMCO, a fixed income asset management firm, is anchoring the long term debt financing.
Walbridge, a commercial construction builder with a century of operations in Michigan, is managing the active build across the 250 acre site. The project consists of three single story buildings, with the first 550,000 square foot LEED certified facility approaching completion.
To manage environmental impact, the developers implemented a closed loop air cooling system that restricts water usage to levels typical of standard office buildings. DTE, a regional energy utility, will supply power for the campus, while the project coalition is financing a new battery storage system. This storage infrastructure is projected to generate $300 million in grid savings for existing utility customers while maintaining local grid reliability. The developers are also preserving more than 750 acres of adjacent open space, wetlands and farmland.
The development operates under a unique labor framework negotiated with North America’s Building Trades Unions, a federation of labor organizations. It is the first data center constructed under a memorandum of understanding between the labor federation and OpenAI. It is also the first established under a specific project labor agreement covering 14 signatory skilled trade unions.
More than 700 tradespeople are working on the site. The total labor footprint will encompass over 2,500 construction jobs, 1,500 regional support roles and 450 permanent onsite positions. The site construction phase will direct more than $5 billion to Michigan contractors and suppliers.
Financial models indicate the data center will generate over $150 million each year in tax revenues for almost two decades. Saline Township is positioned to receive about half of this capital, equating to $500,000 per resident over the term of the lease. Alongside the tax generation, the corporate coalition announced a $10 million community grant to expand the Saline Recreation Center. This funding will finance renovations to the aquatic facility and childcare areas. The developers earlier committed $14 million to local fire services and farmland preservation initiatives.
The infrastructure supports the computational requirements of complex data models and enterprise cloud services.
“Our job at OpenAI is to make intelligence smarter, cheaper, and more abundant so that more people can build, solve problems, and expand what they’re able to do. Delivering that for the many, not the few will require building new infrastructure,” said Sam Altman, CEO of OpenAI. Under state commercial regulations, the completed facility is mandated to pay for all consumed electricity throughout its operational lifespan.
