Gov. Gretchen Whitmer stood beside OpenAI CEO Sam Altman and Oracle CEO Clay Magouyrk on Monday for a ceremonial groundbreaking in Saline Township, Washtenaw County. The event marked a milestone for a $16 billion data center project that has divided the community and drawn sharp criticism from state lawmakers.

The facility, dubbed "The Saline Barn," is the first OpenAI data center in the Midwest and part of the $500 billion Stargate Project announced by President Donald Trump in 2025. The project has already sparked lawsuits, public protests, and the resignation of a township official who said she faced death threats from outraged residents.

A $56 Billion Total Investment

Oracle CEO Clay Magouyrk told CNBC that the initial $16 billion construction price tag does not include the cost of the equipment inside the buildings. He said networking hardware and GPUs will add another $30 billion to $40 billion.

"In terms of the construction, it's big in terms of the amount of people that are working on it, and it's big in terms of the impact that's in the world," Magouyrk said at the event.

Related Digital, a subsidiary of Related Companies, is developing the campus on approximately 250 acres of former farmland. The data center will occupy about one-third of the 700-acre parcel acquired by Related. The project is expected to be completed by the end of 2027, with operations beginning in early 2028.

Whitmer Defends the Deal

Gov. Whitmer called the data center "phenomenal" and "the largest economic project in Michigan history." She highlighted a 2024 state law that bans utilities from passing data center power costs onto other customers.

"We are setting an example for the rest of the nation, the rest of the world for that matter. We have the right guard rails to ensure responsible adoption of AI and create jobs, save on energy costs, and protect our environment," Whitmer said.

The governor said she made it clear to developers she would not support the project if it was not built responsibly.

Community Pushback and Political Fallout

The project has faced sustained local opposition. Saline Township officials voted to deny the rezoning of agricultural land for the data center in September 2025. Related Digital and local landowners sued, accusing the township of "exclusionary zoning." A judge ruled in favor of the developers in October, clearing the way for construction.

The controversy took a personal toll on local government. Former Saline Township Treasurer Jennifer Zink resigned in May, citing death threats from residents angry about the data center.

"I can't take it anymore," Zink said at a May 15 township meeting. "The threats, that 'I'm going to tar and feather you.' ... It's so disgusting."

State lawmakers have also weighed in. Rep. Dylan Wegela, D-Garden City, called the project a "complete betrayal of the working class" on social media after the groundbreaking. Wegela is a sponsor of legislation to repeal the state's 6 percent sales and use tax break for data centers that invest at least $250 million.

Energy and Job Concerns

The data center is planned to use 1.4 gigawatts of electricity. That is roughly equivalent to the energy consumption of one million households, according to Ben Green, an assistant professor at the University of Michigan School of Information and Public Policy.

"The rapid pace in which data centers are being developed across the country is fueling a massive expansion in energy and water demand," Green said. "It is putting severe strain on efforts to move the country toward renewable energy sources."

The companies expect the project to create 2,500 union construction jobs and 450 permanent positions once operational. But experts say those numbers are often overstated.

Jean Hardy, a Michigan State University professor who studies emerging technology and rural development, said Michigan lacks the skilled labor pipeline to fill large-scale construction projects with local workers.

"The reality is that Michigan does not have the trades pipeline to actually fulfill a lot of the large-scale construction it does any year, let alone on data centers," Hardy said. "It's very common for construction crews to come outside the area."

Hardy also disputed comparisons between the data center industry and the auto industry, saying auto plants directly employ thousands of workers and generate hundreds of supply chain jobs.

"There is literally no world in which the data center industry will employ that number of people," Hardy said.

Community Benefits Package

The deal between Related Digital and Saline Township included several community investments:

  • $4 million for a township farmland preservation trust fund
  • $8 million for area fire services
  • $10 million donation to the Saline Recreation Center to expand its aquatic center
  • Preservation of 200 acres of farmland at the site

Sunshine Lambert, Saline's parks and recreation director, said the recreation center donation would be "transformational."

"This is an opportunity that, honestly, I would have never imagined," Lambert said. "I'm speechless."

A National Pattern

The Saline Township project is one of several data centers planned or under construction in Michigan. Google recently secured approximately $124 million in property tax breaks for a planned 1-gigawatt data center in Van Buren Township. DTE Energy announced a $1.6 billion deal to purchase batteries from LG Energy Solution, with five energy storage systems designated to support the Oracle data center in Saline.

Meanwhile, communities across the state are pushing back. Pittsfield Township extended its data center moratorium for six months while drafting an ordinance that would require facilities to source at least 90 percent of energy from renewables. Allen Park residents demanded a one-year moratorium on a proposed Solstice data center during a May city council meeting.

The debate over data centers in Michigan is likely to intensify as the July 1 state budget deadline approaches and lawmakers consider whether to repeal the tax incentives that made projects like The Saline Barn financially viable.

"None of this happens without consequences," Magouyrk said. "Things of this scale haven't been done before and we learn as we go."