Saline Township data center price tag balloons to $16B as developers lock in financing

The Oracle and OpenAI data center project in Saline Township, Michigan, has reportedly ballooned to a $16 billion investment, significantly higher than the initial $7 billion estimate. Developer Related Digital, in conjunction with funds affiliated with Blackstone, announced securing equity and debt financing for the campus, calling it one of the largest data center capital raises nationally. PIMCO-managed funds are providing long-term debt, with Bank of America, Goldman Sachs, and Wells Fargo also involved. Despite this financial milestone, the project has faced considerable local opposition since its inception. The Saline Township Board initially denied rezoning agricultural land for the campus in September 2025. However, Related Digital and landowners successfully sued the township, leading to an October 2025 consent judgment that allowed the project to proceed. A subsequent attempt by the township board to maintain agricultural zoning in January was stated by developers as not affecting the project due to the consent judgment. A Saline Township resident's motion in Washtenaw County Circuit Court to unwind the consent judgment, citing Open Meetings Act violations, was denied by a judge in February. DTE Energy is slated to provide all power for the gigawatt-capacity facility, utilizing existing resources supplemented by Oracle-funded battery storage. The Michigan Public Service Commission (MPSC) approved DTE's special contracts for the data center in December. However, Attorney General Dana Nessel has challenged this, filing a motion in February to reopen the MPSC's approval, arguing that DTE did not adequately protect customers from subsidizing the data center and raising concerns about redacted contracts. Related Digital asserts the project will use a closed-loop, non-evaporative cooling system drawing from its own well, and preserve a significant portion of the 1,000-acre site as open space. The developer highlights community benefits, including job creation and direct community investment. The project has also become a focal point in Michigan's 2026 elections, with various candidates outlining their stances on data center development regulations. Major construction is underway in Saline Township, with the campus on schedule for delivery to Oracle, which will operate the data center as part of OpenAI’s Stargate AI infrastructure buildout.