$16 billion data center campus in Saline Township secures financing, construction underway

Financing has been secured for the $16 billion data center campus planned in Saline Township, Michigan, according to an announcement made by Related Digital and Blackstone. The financing package includes equity from Related Digital and Blackstone-affiliated funds, along with fixed-rate financing primarily from PIMCO-managed funds and accounts. Jeff T. Blau, CEO of Related Companies and Chairman of Related Digital, stated that major construction for the campus is well underway, emphasizing the project's critical role in America's digital future. Bank of America served as the structuring agent and financial advisor, with Goldman Sachs and Wells Fargo also providing advisory services. The closing of this financing is currently pending. OpenAI had previously announced the data center project in Washtenaw County, specifying that it would be designed for Oracle, which is also financing a new battery storage investment for the power supply. The Saline Township campus, to be known as "The Barn" in honor of a historic red barn preserved on site, will feature three single-story data center buildings. The 1,383-megawatt Stargate facility's plans follow previous announcements of six other data center sites across the U.S. In December, the Michigan Public Service Commission approved DTE's contracts to supply power to the campus. Related Digital projects that the development will create 2,500 union construction jobs and over 450 permanent onsite jobs, along with substantial property tax revenue for local fire departments and schools. DTE is expected to supply 100% of the project's power, which Related Digital claims will result in $300 million in savings for DTE's existing customers due to the project's contribution to grid maintenance and improvements. However, the data center proposal, alongside others in Michigan cities like Southfield and Howell Township, has reportedly generated protests from residents in their respective communities.