Key Points
- OpenAI, Oracle, and Related Digital are building a 1+ gigawatt AI data-center campus in Saline Township, Michigan.
- This multi-billion-dollar project is part of their larger plan to expand U.S. artificial intelligence infrastructure significantly in early 2026.
- The Stargate expansion, including these significant other sites, aims for over 8 gigawatts of capacity and more than $450 billion in investment over the next three years.
- It highlights the AI industry’s mass multi-billion-dollar power and OpenAI’s commitment to its $500 billion, 10-gigawatt goal.
OpenAI, Oracle, and Related Digital are teaming up to build a massive data-center campus exceeding 1 gigawatt in Saline Township, Michigan. This project is part of their “Stargate” plan to significantly expand U.S. artificial intelligence infrastructure. The announcement on Thursday highlights the AI industry’s huge demand for computing power, as companies push to develop technology that exceeds, or even surpasses, human intelligence.
The companies called it a multi-billion dollar investment but did not give an exact figure. Industry experts estimate that 1 gigawatt of computing power, enough to power about 750,000 U.S. homes, can cost around $50 billion. Construction for the Michigan project is set to begin early in 2026.
This project is part of the larger 4.5-gigawatt Stargate expansion by Oracle and OpenAI. With six other U.S. sites, this infrastructure group’s planned capacity now totals over 8 gigawatts, with a total investment exceeding $450 billion over the next three years. OpenAI stated that this move keeps Stargate ahead of schedule to meet its $500 billion, 10-gigawatt commitment. The startup has not shared many details on how it plans to fund this enormous spending.
Earlier this week, OpenAI finished a restructuring that allows the ChatGPT maker to move further away from its nonprofit beginnings. Reuters reported that OpenAI is preparing for an initial public offering (IPO) that could value the company at up to $1 trillion.
However, the rapidly rising valuations of AI companies and their massive spending commitments, which for OpenAI alone total over $1 trillion, have raised concerns that the AI boom might be turning into a bubble.
OpenAI confirmed on Thursday that Related Digital will develop the Michigan project. This project is expected to create more than 2,500 union construction jobs. Peter Hoeschele, OpenAI’s vice president of industrial compute, said, “This project will help ensure Michigan is a key part of building the AI infrastructure that will power the next generation of American innovation.”
