OpenAI announced a massive expansion of its Stargate AI infrastructure project to Saline Township, Michigan, marking what Governor Gretchen Whitmer calls “the largest economic project in Michigan history.” The new campus will feature over 1 gigawatt of computing capacity, cost more than $7 billion, and create thousands of jobs starting in early 2026.
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What Is the Stargate Project
The Stargate Project is a $500 billion AI infrastructure initiative announced in January 2025, designed to build advanced data centers across the United States to support next-generation artificial intelligence development. Structured as a joint venture between OpenAI, SoftBank, Oracle, and investment firm MGX, the project aims to establish American leadership in AI by creating 10 gigawatts of computing capacity over the next four years. The initiative takes its name from the 1994 film “Stargate,” symbolizing portals to new technological frontiers, and represents one of the largest infrastructure buildouts in tech history.
The Stargate AI Project is a $500 billion public-private partnership led by OpenAI, SoftBank, and Oracle to build a nationwide network of AI data centers. With an initial $100 billion investment, the project aims to create over 100,000 American jobs while establishing the computing infrastructure needed to train advanced AI models.
Michigan Site Details and Investment
The Michigan campus will occupy 250 acres in Saline Township, Washtenaw County, featuring three single-story buildings of 550,000 square feet each. Related Digital, a vertically integrated data center development platform, is leading the construction with a multi-billion dollar investment exceeding $7 billion. The facility will deliver more than 1 gigawatt of computing capacity equivalent to the power output of a nuclear reactor, according to Wall Street analysts.
DTE Energy will serve the campus using existing excess transmission capacity, which means the project won’t strain local energy supplies. The utility company confirmed it will provide 1.4 gigawatts of load ramping up over two to three years, representing about 25% of DTE’s current capacity, without increasing customer rates. The site will incorporate a closed-loop cooling system to significantly reduce water consumption, earning LEED certification for environmental design.
Job Creation and Economic Impact
Construction is scheduled to begin in early 2026, generating more than 2,500 union construction jobs during the build phase. Once operational, the facility will create an additional 450 permanent on-site positions, plus approximately 2,000 jobs county-wide to support project operations. These roles are expected to pay competitive wages, with Michigan’s enhanced data center incentive program requiring at least 150% of the median regional wage.
Governor Whitmer emphasized the project’s transformational potential: “This from Oracle Related Digital sends a simple message to anyone who wants to build the future you build it in Michigan.” The announcement builds on Michigan’s strategic positioning in advanced manufacturing, semiconductors, and clean energy sectors.
Why Michigan Was Selected
Michigan secured this historic investment through a combination of strategic advantages and policy incentives. The state legislature recently enhanced data center tax incentives, offering sales and use tax exemptions on equipment purchases through at least 2050, with extensions to 2065 for brownfield or former power plant sites. To qualify, operators must invest a minimum of $250 million in digital infrastructure and create at least 30 jobs paying 150% of the median wage requirements this project far exceeds.
Beyond incentives, Michigan’s existing power infrastructure, skilled workforce, and manufacturing heritage made it an ideal location. The state’s central location provides logistical advantages for a national AI network, while partnerships with utilities like DTE Energy ensure reliable power delivery without burdening existing ratepayers.
Stargate’s Broader National Footprint
The Michigan campus joins six previously announced U.S. Stargate sites, bringing total planned capacity to over 8 gigawatts and $450 billion in investment across the first three years. Five additional locations were revealed in September 2025: Shackelford County and Milam County in Texas, Doa Ana County in New Mexico, Lordstown in Ohio, and another unnamed Midwest site. The flagship facility in Abilene, Texas, broke ground in early 2025 and is expected to complete before year-end.
This aggressive expansion timeline puts Stargate ahead of schedule to meet its 10-gigawatt, $500 billion commitment by 2029. To provide perspective, 10 gigawatts could power approximately 7.5 million homes, and the Michigan site alone requires energy equivalent to a quarter of DTE’s current capacity.
Technology Partners and Infrastructure
Oracle serves as the primary cloud infrastructure partner, providing expertise in managing large-scale AI workloads. Key technology partners include Microsoft, NVIDIA, and Arm, who supply the chips, networking equipment, and software needed to train advanced AI models. OpenAI will use Stargate infrastructure alongside its existing Microsoft Azure capacity to meet exploding demand for computing power.
The data centers will house thousands of high-performance GPUs from NVIDIA and other manufacturers, enabling the training of next-generation AI systems that require massive parallel processing capabilities. These facilities must balance enormous computational demands with energy efficiency and environmental sustainability challenges the Michigan site addresses through advanced cooling systems and grid management.
Timeline and Regulatory Approvals
Construction is set to commence in early 2026, pending approval from the Michigan Public Service Commission (MPSC), which regulates state utilities. DTE Energy filed its electricity provision plan with the MPSC on October 31, 2025, outlining how it will deliver 1.4 gigawatts without impacting residential customers. Any required transmission upgrades will be funded by the project itself, not local ratepayers, a key provision that addresses community concerns about infrastructure costs.
While the announcement didn’t specify a completion date, similar Stargate facilities like the Abilene campus are targeting 12-18 month construction cycles for initial phases. Full operational capacity may take several years as the site scales to meet OpenAI’s expanding AI training requirements.
Benefits Beyond AI Development
OpenAI emphasizes that Stargate supports broader American reindustrialization by strengthening domestic supply chains and creating skilled employment in manufacturing, energy, and technology sectors. The infrastructure buildout generates opportunities in construction, electrical systems, cooling technology, and ongoing operations skills that transfer across industries.
The project also aims to deliver societal benefits through the AI applications it enables, from improved healthcare diagnostics to enhanced public services and scientific research. Larry Ellison of Oracle has suggested that Stargate’s computing power could facilitate rapid development of personalized cancer treatments and other medical breakthroughs.
Community and Environmental Considerations
The Michigan campus incorporates several features to minimize local environmental impact. The closed-loop cooling system drastically reduces water consumption compared to traditional data center designs a critical consideration given the scale of operations. LEED certification ensures the facility meets recognized sustainability standards for energy efficiency and resource management.
DTE Energy’s use of existing excess transmission capacity means the project leverages infrastructure already in place rather than requiring entirely new power generation or distribution networks. This approach reduces environmental disruption while accelerating deployment timelines, though the sheer energy demand still raises questions about grid capacity and renewable energy sourcing.
Competitive Landscape and Global Implications
The Stargate Project positions the United States to compete with international AI initiatives, particularly as countries like China invest heavily in computing infrastructure. With planned expansions to the United Kingdom, Norway, Japan, and the United Arab Emirates, Stargate is becoming a global platform while maintaining primary focus on American capacity.
SoftBank CEO Masayoshi Son chairs the venture and handles financing, while OpenAI manages operations. This division of responsibilities allows OpenAI to focus on technical execution while SoftBank coordinates the unprecedented capital deployment, though some analysts have questioned whether the full $500 billion commitment can be realized given market conditions and AI hardware supply constraints.
Practical Implications for Michigan
For Michigan residents and businesses, the project offers tangible benefits beyond job creation. The influx of high-skilled technology workers may stimulate housing, retail, and service sectors in Washtenaw County. Educational institutions could develop specialized training programs aligned with data center operations, creating career pathways for local students.
However, the project also presents challenges, including potential traffic increases during construction, demands on local services, and community adaptation to hosting a major technology campus. Public hearings have already surfaced concerns about AI data centers’ long-term implications, though the economic opportunities appear to outweigh reservations for state leadership.
Comparison Table
| Aspect | Michigan Stargate Site | Overall Stargate Project |
|---|---|---|
| Investment | $7+ billion | $500 billion (by 2029) |
| Computing Capacity | 1+ gigawatt | 10 gigawatts target |
| Construction Start | Early 2026 | Started 2025 (Abilene) |
| Jobs Created | 2,500 construction + 450 permanent | 100,000+ nationwide |
| Site Size | 250 acres, 1.65M sq ft | Multiple sites across U.S. |
| Key Partners | OpenAI, Oracle, Related Digital, DTE | OpenAI, SoftBank, Oracle, MGX |
| Environmental Features | Closed-loop cooling, LEED certified | Varies by site |
| Power Source | DTE existing excess capacity | Mixed utility providers |
Frequently Asked Questions (FAQs)
Will the Stargate data center increase electricity costs for Michigan residents?
No. DTE Energy has confirmed that the project will not increase customer rates for Michigan residents. The utility will use existing excess transmission capacity, and any required upgrades to support the data center will be funded by the project itself, not by local ratepayers.
How many people will the Michigan Stargate project employ?
The project will create more than 2,500 union construction jobs during the building phase starting in 2026. Once operational, it will provide 450 permanent on-site positions plus approximately 2,000 additional jobs county-wide to support ongoing operations, totaling nearly 3,000 long-term positions.
What companies are involved in building the Michigan data center?
The Michigan Stargate campus is a collaboration between OpenAI (AI operations), Oracle (cloud infrastructure), and Related Digital (development and construction). DTE Energy will provide electrical power, and technology partners include Microsoft, NVIDIA, and Arm for hardware and software components.
How much computing power will the Michigan facility have?
The campus will deliver more than 1 gigawatt of computing capacity, which analysts compare to the power output of a nuclear reactor. This represents about 25% of DTE Energy’s current capacity and will support training advanced AI models requiring massive parallel processing.
Where exactly in Michigan will the Stargate data center be located?
The facility will be built on 250 acres in Saline Township, Washtenaw County, near Ann Arbor. The site will feature three single-story buildings of 550,000 square feet each, totaling 1.65 million square feet of data center space.
Is the Stargate Project only in Michigan?
No. The Michigan campus is one of seven announced U.S. Stargate sites. Other locations include Abilene, Texas (the flagship facility), plus sites in New Mexico, Ohio, Wisconsin, and additional Texas locations, totaling over 8 gigawatts of planned capacity nationwide.
Featured Snippet Boxes
What is the OpenAI Stargate Michigan project?
The Stargate Michigan project is a $7+ billion AI data center campus in Saline Township with over 1 gigawatt of computing capacity. Developed by OpenAI, Oracle, and Related Digital, construction begins in 2026 and will create 2,500 union construction jobs plus 450 permanent positions, making it Michigan’s largest economic project ever.
How much will the Stargate project cost in total?
The overall Stargate Project carries a $500 billion investment commitment over four years, with $450 billion already allocated across announced U.S. sites. The Michigan campus specifically represents a multi-billion dollar investment exceeding $7 billion for the 250-acre facility.
When will the Michigan Stargate data center open?
Construction is scheduled to begin in early 2026 pending Michigan Public Service Commission approval. While no specific completion date was announced, similar Stargate facilities target 12-18 month initial construction cycles, suggesting partial operations could begin in 2027 with full capacity following in subsequent years.
Why did OpenAI choose Michigan for Stargate?
Michigan offered enhanced tax incentives including sales tax exemptions through 2050, existing excess power transmission capacity via DTE Energy, a skilled manufacturing workforce, and strategic central U.S. location. The state’s infrastructure and policy environment aligned with Stargate’s massive power and operational requirements.
What environmental measures does the Michigan site include?
The facility uses a closed-loop cooling system that significantly reduces water consumption compared to traditional data centers. It will achieve LEED certification and utilize existing DTE Energy transmission capacity to avoid straining local power supplies, with all grid upgrades funded by the project rather than ratepayers.
Source: OpenAI