Controversy Surrounds $7 Billion AI Data Center Project in Saline Township, Michigan
A massive 1.4 GW data center project, estimated at around $7 billion, is underway on a 575-acre site in Saline Township, Michigan, as part of the Stargate initiative to support AI infrastructure. The project, expected to create a few hundred jobs, is backed by high-profile figures including Donald Trump, Sam Altman, Larry Ellison, Gretchen Whitmer, DTE Energy, and Stephen Ross, and is associated with federal subsidies reportedly totaling $500 billion.
Initially rejected by Saline Township’s board in September, the plan was approved following a settlement with Related Digital, allowing the project to proceed despite local opposition. Residents have voiced concerns over potential higher energy bills, groundwater pollution, and the loss of the area's rural character. Protest events have drawn significant numbers, with approximately 200 participants in initial demonstrations and around 800 at later state-level sessions. One resident described the endeavor as "uniquely evil."
The regulatory conflict revolves primarily around utility oversight. DTE Energy is pursuing an ex parte fast-track approval from the Michigan Public Service Commission, while Attorney General Dana Nessel and consumer groups advocate for a contested case to enable thorough examination of the project's costs and pollution implications.
Michigan’s climate legislation aims for a renewable energy transition by 2040 and includes an off-ramp option for fossil fuel plants that the Saline center’s 1.4 GW demand could potentially trigger. Current peak electricity demand in Michigan is about 9.5 GW with capacity at roughly 11 GW. DTE has indicated negotiations are underway for approximately 7 GW of data center power and suggested that new gas-fired infrastructure may be necessary.
Numerous other data center proposals exist in Michigan, particularly near Ann Arbor. Saline Township, home to about 4,000 residents, exemplifies the broader debate over the placement and regulation of large-scale data infrastructure in proximity to local communities. Related Digital claims zoning law violations but reports having reached a settlement to proceed with the project and has contributed nearly $14 million in local donations.
