OpenAI, Oracle and Related Digital have announced plans to build a massive data centre campus with more than 1 gigawatt of capacity in Saline Township, Michigan. The project is part of their Stargate initiative to expand artificial intelligence infrastructure across the United States.
The announcement, made on Thursday, highlights the rapidly increasing demand for computing power in the AI industry as companies race to develop technologies that could match or even exceed human intelligence.
The companies confirmed that this would be a multi-billion dollar investment but did not reveal the exact amount. Industry experts estimate that building a 1-gigawatt data facility, capable of powering around 750,000 U.S. homes, could cost nearly $50 billion. Construction of the campus is expected to begin in early 2026.
This Michigan project is part of Oracle and OpenAI’s larger 4.5-gigawatt Stargate expansion, which includes six other U.S. sites. Together, these developments will increase the group’s planned capacity to more than 8 gigawatts and total investment to over $450 billion within the next three years.
OpenAI stated that this move keeps the Stargate initiative ahead of schedule toward its $500 billion, 10-gigawatt target. However, the company has shared few details about how it intends to finance such a massive expansion.
Earlier this week, OpenAI completed a restructuring process, allowing the ChatGPT creator to move further away from its non-profit roots. Reports have suggested that the company is preparing for an initial public offering, which could value it at up to $1 trillion.
Despite the optimism, the soaring valuations of AI firms and their large-scale spending plans — estimated to exceed $1 trillion — have sparked concerns that the AI boom could be turning into a financial bubble.
OpenAI confirmed that Related Digital will lead the development of the Michigan site, which is expected to generate more than 2,500 union construction jobs.
“This project will help ensure Michigan is a key part of building the AI infrastructure that will power the next generation of American innovation,” said Peter Hoeschele, OpenAI’s vice president of industrial compute.
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