Michigan has been selected as the host for what Governor Gretchen Whitmer (D-MI) describes as the most significant economic development initiative in the state’s history. The project, known as OpenAI Stargate, is a multi-billion-dollar collaboration between OpenAI, Oracle, and Related Digital, aimed at building one of the most advanced artificial intelligence infrastructure facilities in the United States, located in Saline Township.
Officials project the development will generate over 2,500 union construction jobs, more than 450 permanent on-site positions, and an additional 1,500 indirect jobs throughout Washtenaw County. Governor Whitmer credited Michigan’s skilled labor force, proximity to major research universities, and recent bipartisan legislative actions for attracting the investment.
A key factor was House Bill 4906, signed in January, which extends sales and use tax exemptions for data center equipment and enterprise data centers through 2050, with extended benefits until 2065 for facilities on redeveloped brownfield sites or former power plants.
The facility will operate with a one-gigawatt capacity without requiring new power generation. It will utilize a closed-loop water system, avoiding additional withdrawals from the Great Lakes, and will preserve over 700 acres of land for agricultural, wetland, and forest use. Related Digital has also committed $14 million to support local fire services, community initiatives, and farmland conservation, as requested by the township board.
A transportation impact study conducted by the Michigan Department of Transportation rated the project an ‘A’, indicating minimal disruption to local traffic. Officials also emphasized the strategic advantage of being near the University of Michigan and Eastern Michigan University, which provide a steady stream of qualified graduates for high-demand tech roles. No groundbreaking date has been announced yet.
— news from WWMT
— News Original —
Gov. Whitmer: Michigan wins ‘largest economic project’ in state history
Michigan has been selected to house what Gov. Gretchen Whitmer (D – MI) calls the “largest economic project” in the state ‘s history. n nKnown as OpenAI Stargate, the multi-billion project built by OpenAI, Oracle and Related Digital aims to construct one of the “most advanced AI infrastructure facilities in the US” in Saline Township, Mich., according to the Executive Office of the Governor. n nIt is expected to create more than 2,500 union construction jobs, more than 450 jobs on site and 1,500 additional jobs across Washtenaw County. n n“I’m grateful to these cutting-edge companies for betting on Michigan, building on our work to compete for and win big projects in next-generation industries from cars and clean energy to semiconductors and batteries,” Whitmer said. “We will continue working together at the state level to win more projects so we can create even more good-paying, local jobs for Michiganders and grow our economy.” n nMore state news: Michigan to provide $4.5M to Food Bank Council to aid families amid federal SNAP pause n nThe one gigawatt project will not need to generate additional power to operate. n nAccording to officials, OpenAI Stargate is expected to use a closed loop water system that will not require any additional water from the Great Lakes, and will preserve more than 700 acres of open space, which will be retained and used as farmland, wetland and forest. n nRelated Digital is also expected to invest an additional $14 million, as requested by the Saline Township Board, in local fire departments, a community investment fund and a farmland preservation trust, officials said. n nMoreover, the project is expected to have minimal impacts on traffic, according to a Michigan Department of Transportation study that awarded the project an ‘A. ‘ n “This investment from Oracle and Related Digital sends a simple message to anyone who wants to build the future—you can build it in Michigan,” Whitmer said. n nTrending on WWMT: Consumers Energy launches ‘Public Safety Power Shutoff ‘ policy n nMichigan was chosen for OpenAI Stargate because of the state ‘s strong workforce, local talent, and bipartisan legislation that Gov. Whitmer signed in January to lower costs for construction of high-tech infrastructure. n nSpecifically, Whitmer signed House Bill 4906, which amended to Use Tax Act and General Sales Tax Act to do the following in part: n nExtend the sunset on a use and sales tax exemption for qualified entities ‘ sale, storage, use or consumption of data center equipment through Dec. 31, 2050. n nEstablish the same use and sales tax exemption for enterprise data centers, facilities that met specific requirements related to capital investment and the creation of new jobs in Michigan, through Dec. 31, 2050. n nEstablish the same use and sales tax exemption for an enterprise data center located on a brownfield redevelopment or former electric power plant through Dec. 31, 2065. n nIn addition, proximity to the University of Michigan and Eastern Michigan University offered a “pipeline of local talent and an opportunity for young Michiganders to start their in-demand, high-paying careers” in the state, officials said. n nA groundbreaking date for OpenAI Stargate was not disclosed.