Saline Township Major Data Center Project to Proceed

Saline Township — After months of public debate and a failed rezoning vote, Saline Township has reached a settlement that allows a massive data center project backed by OpenAI, Oracle, and Related Digital to move forward on farmland southwest of Saline.

The agreement, approved by the Township Board in October, clears the way for construction of what state officials call the largest single private investment in Michigan history. The development, part of the companies’ “Stargate” initiative, is expected to bring more than 2,500 construction jobs and hundreds of permanent positions to the area. Related Digital has also estimated the facility would quadruple Saline Township’s annual property tax revenue, from about $754,000 today to nearly $3 million by 2028. However, township officials clarified most of those funds will flow through the state’s complex school financing formula rather than directly to district budgets.

Governor Gretchen Whitmer announced the project in late October, calling it “the largest one-time investment in state history, with a generational opportunity," to position Michigan at the center of emerging artificial intelligence technology. The $7 billion data center campus would occupy roughly 250 acres within a larger 525-acre property near Braun and Dell Roads in the rural township.

Background of the Dispute

The project first appeared before the Saline Township Board in September, when developers sought to rezone the farmland from agricultural to industrial use. Residents packed the township hall to voice concerns about traffic, noise, light pollution, and the loss of productive farmland.

After more than two hours of public comment, the board voted 4–1 to deny the rezoning request. Township officials cited the master plan’s emphasis on preserving farmland and rural character, saying the proposal did not align with local land-use goals.

Within weeks, Related Digital filed a lawsuit against the township in Washtenaw County Circuit Court, arguing that the denial amounted to exclusionary zoning, declaratory relief violation of law, and violation of due process of law. These alleged counts are tantamount to unlawfully blocking a major economic development. Facing the cost of litigation and the possibility of a court-ordered reversal, the township entered settlement negotiations.

Terms of the Consent Agreement

At the September 24, 2025 Saline Township meeting, representatives from Related Digital gave a presentation and answered questions from the community. The project manager stated that there would be union jobs, no temporary housing on site, and the developer would be willing to meet with residents once a month to discuss any questions or concerns. Representatives from DTE were also in attendance to answer questions.

Under the consent judgment approved in October, the developer is permitted to build the data center campus under strict environmental and design conditions. The agreement requires the preservation of about 200 acres of open space and farmland, with roughly 47.5 acres placed under a conservation easement.

Water use at the site is also tightly restricted. The center is barred from using high-water evaporative cooling systems and will instead use a closed-loop cooling system, limit water consumption to restrooms, landscaping, humidity control, and maintenance, and monitor the underlying aquifer for any signs of decline. The deal further establishes setbacks of at least 75 feet from property lines and township roads, and it prevents any future expansion beyond the approved site plan, and promises noise levels onsite would be “no louder than a household refrigerator."

In addition, Related Digital has agreed to contribute to a township farmland preservation fund, a community investment fund, and local fire and emergency service upgrades. Township officials say those funds will help offset the project’s impact and provide long-term benefits to residents. 

Power and Infrastructure Plans

The Stargate facility has a 19 year contract with DTE Energy through existing high-voltage transmission lines. The developers have pledged to finance on-site battery storage and grid improvements so that the new demand does not raise costs for current DTE customers.

According to state filings, the project will require 1.4 gigawatts of power once complete, more than the output of DTE's Fermi 2 nuclear plant. Detroit-based contractor Walbridge is expected to lead the site work and construction.

On October 31, DTE Energy requested an “ex parte” approval by the Michigan Public Service Commission (MPSC) to fast-track the special contract to provide power for Stargate. The request would bypass the usual public hearings and a potentially lengthy review process. DTE claims that expedited approval is necessary for the project to begin construction by early 2026 and argues the contract will not increase rates for existing customers, as all incremental costs will be recovered from the new data center.

The office of Michigan Attorney General Dana Nessel opposed the fast-track request, citing significant unknown details surrounding the project and the potential financial risks to utility ratepayers. AG Nessel released a statement on November 6, which “urges the MPSC to treat the requests as a contested case and conduct public hearings on the matter.” The MPSC recently announced a public hearing will be held on December 3, 2025 with a decision on DTE's application expected at its regularly scheduled meeting on December 5, 2025. AG Nessel does not believe this decision reaches far enough.

“Despite this announcement, the MPSC is still not allowing for meaningful intervention and review on these DTE data center contracts,” said Nessel. "Without formal hearings and a contested case declaration, this alone would amount to little more than performative listening rather than thorough public scrutiny. I am concerned that the MPSC has yet to respond to my request to intervene and hold true hearings, and I am fearful that today’s announcement signals they have no intention to hold the formal hearings our residents and ratepayers deserve. To protect Michiganders in this crucial moment we must demand a full, formal contested case, where parties can issue demands for discovery, submit informed expert testimony, and create a record of evidence upon which the MPSC, and everyone across the State, can fairly evaluate these contracts.”

Community Reactions Remain Divided

Reaction in Saline Township and surrounding communities remains mixed. Supporters argue the project will bring significant economic benefits, create high-paying technical jobs, and generate new tax revenue for schools and public services.

“This is a transformative project for Washtenaw County and for Michigan,” Governor Whitmer said in a statement. “We’re showing that our state can lead in the next generation of AI technology and infrastructure.”

Opponents say the settlement undermines local planning authority and endangers the township’s agricultural character. Former State Representative and current Water Resources Commissioner Gretchen Driskell addressed the Township Board on her thoughts and provided a proposal for a Land Preservation Program to address the history of Saline Township and preservation of farmland.

Looking Ahead

State officials say the project will be a cornerstone in Michigan’s growing data infrastructure network, designed to handle the power and cooling demands of advanced AI systems.

Environmental groups and local residents plan to monitor the project as it moves through the state’s regulatory process. The Michigan Public Service Commission and the Washtenaw County Water Resources office are both expected to review portions of the plan in the coming months. Construction is targeted to begin in early 2026, pending regulatory approvals, with the first phase of operations starting by 2028.

For now, township leaders say their priority is ensuring the developer follows the consent judgment to the letter.

“We’re going to hold them to every commitment they’ve made,” Saline Township Clerk Kelly Marion said. “That’s our job now — to protect the township while this moves forward.”

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