Tax breaks, power lines help Michigan lure Stargate

By Jeffrey Tomich | 11/03/2025 06:53 AM EST

Gov. Gretchen Whitmer said the OpenAI-Oracle data center project southwest of Detroit is the largest economic development project in the state’s history.

Michigan Gov. Gretchen Whitmer speaks during a campaign event for Vice President Kamala Harris.

Michigan Gov. Gretchen Whitmer (D) signed legislation early this year that offered data center developers significant tax breaks. Matt Rourke/AP

Tech giants OpenAI and Oracle are teaming with developer Related Digital to develop a data center campus in southeastern Michigan — the second hyperscale Stargate project announced in the Midwest in the span of eight days.

The project comes less than a year after Michigan Gov. Gretchen Whitmer (D) signed a law providing tax breaks to data center developers. It paves the way for what the governor last week said was the largest economic development project in the state’s history, eclipsing a $7 billion expansion announced by General Motors in 2022.

The latest in the collection of AI data centers known as Stargate, a collaboration announced in the White House during the first days of President Donald Trump’s second term, will be built on 250 acres of farmland in rural Saline Township, Michigan, an hour southwest of Detroit.

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Dubbed “the Barn” for an historic red barn being preserved near the entrance to the site, the project will consist of three 550,000-square-foot buildings that will host 1.4 gigawatts of computing capacity, according to the developer and utility DTE Energy, which will supply power to the site.

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