Controversy Surrounds $7 Billion AI Data Center in Michigan Amid Energy and Environmental Concerns
A proposed 1.4 gigawatt data center on a 575-acre site in Saline Township, Michigan, has sparked significant local opposition due to its scale, environmental impact, and energy consumption concerns. The center, part of the Stargate project comprising five datacenters, carries a $7 billion price tag and would consume as much power as the city of Detroit. This tremendous demand raises questions about the feasibility of Michigan's legislative commitment to a renewable energy transition by 2040.
The project has attracted high-profile backers including former President Donald Trump, tech leaders Sam Altman, Larry Ellison, Stephen Ross of Related Co, Michigan Governor Gretchen Whitmer, and utility provider DTE Energy. Related Digital is set to develop the data center, with AI infrastructure to be utilized by companies such as OpenAI and Oracle. The initiative is touted as the largest investment in Michigan and is linked to significant government subsidies.
Local residents express fears regarding higher energy bills, potential groundwater pollution, and the loss of the rural character of Saline Township. Some describe the project as "uniquely evil." Initially, the Saline Township Board rejected the project in September, but following a legal settlement with Related Digital and related litigation, it reversed its decision, allowing the project to proceed despite ongoing opposition.
Regulatory scrutiny continues as DTE Energy seeks a fast-track (ex parte) approval from the Michigan Public Services Commission. Meanwhile, the state's attorney general and the Sierra Club advocate for a contested case that would include full evidentiary review. Energy-grid experts highlight challenges concerning Michigan’s renewable energy laws and an off-ramp clause that permits continued fossil fuel use if renewables fail to meet the load.
DTE Energy maintains that residential power rates will not increase due to the data center, but regulators and environmental activists call for greater transparency and rigorous assessment to ensure Michigan's energy transition goals are not compromised.
