Gretchen Whitmer speaks at groundbreaking for massive Saline Township data center
A massive, $16 billion data center project, "The Barn," by Related Digital for Oracle and OpenAI, is breaking ground in Saline Township, Washtenaw County, Michigan. Governor Gretchen Whitmer lauded it as the largest economic deal in Michigan history, emphasizing its job creation, economic benefits, and adherence to "AI guardrails" regarding energy and environmental standards, including a closed-loop water system.
Governor Gretchen Whitmer announced the groundbreaking for "The Barn," a 1.4 gigawatt, $16 billion data center located in Saline Township, Washtenaw County, Michigan. This project, being developed by Related Digital for Oracle and OpenAI, is touted as the largest economic deal in Michigan's history, set to be completed by 2028. Whitmer highlighted its significant economic impact, including the creation of over 2,500 construction jobs and 450 permanent positions on-site, plus more than 1,500 additional jobs across the county. The facility is expected to generate billions in funding for local schools, roads, and fire departments.
Whitmer also addressed concerns about artificial intelligence's impact on jobs, emphasizing that Michigan is ensuring companies create jobs and invest in skills. She noted OpenAI's commitment to providing free access to its Code X program for Michigan college students to prepare them for an AI-shaped job market, a program expected to save students $45 million.
The Governor further detailed the project's adherence to "AI guardrails" in energy and environmental protection. She stated that the Michigan Public Service Commission (MPFC) regulations and recent orders ensure residential customers will not bear the costs of the data center's energy demands, with the facility itself financing growth in battery storage for additional customer savings. The data center will align with Michigan's 2023 clean energy law, aiming for 100% clean energy by 2040.
Environmentally, "The Barn" meets strict standards by operating on a closed-loop water system and preserving over 700 acres of farmland, wetland, and forest. Whitmer presented the project as a model for responsible AI adoption, balancing economic development with environmental and energy considerations, and setting an example for the nation on how such centers should be built.