How a $16 Billion AI Data Center Became Unstoppable in Rural Michigan
Saline Township, Michigan rejected a proposal for a 21 million square-foot data center in September. Two days later, the developer sued. Within weeks, the township settled. By November, construction began.
The facility, built for OpenAI and Oracle's Stargate AI infrastructure initiative, is now the largest construction project ever undertaken in Michigan. It will consume as much electricity as a nuclear plant and reshape a farming community that opposed it almost unanimously.
The speed of approval reveals a pattern across the AI boom: once projects of this scale move forward, local governments have limited ability to stop them. They face constraints from zoning law, financial risk, and developers backed by deep-pocketed tech companies with formidable legal teams.
Why rejection didn't mean no
In September, Saline's planning commission and township board both voted down the rezoning request. The land was zoned for agriculture. The project conflicted with the township's master plan. Residents made their opposition clear at public hearings.
Two days after the board voted 4-1 to deny the proposal, Related Digital and the site's landowners sued, claiming "exclusionary zoning." They argued that Saline Township had no land zoned for industrial use and that a data center qualified as a "necessary" use that could not be excluded entirely under Michigan law.
The township's attorney advised that fighting the lawsuit would likely fail anyway. The developer could pursue other paths-partnering with an institution like the nearby University of Michigan, which operates outside local zoning restrictions. A prolonged legal battle risked tens of thousands of dollars in costs to township residents.
Kelly Marion, the township clerk and sole board member who voted yes initially, said the decision weighed heavily on her. "They were doing studies. They were pulling permits," she said. "Everything was drafted and filed with the county within two days of the meeting. They had this all prepared."
The township settled within weeks. In exchange, it secured roughly $14 million in community benefits-more than 10 times its annual budget of $1 million-plus restrictions on water use, noise caps, and preserved agricultural land. Construction began soon after.
State-level dealmaking set the stage
Before Saline Township saw the proposal, Michigan was actively courting the AI boom. Governor Gretchen Whitmer's office reached out to OpenAI in February 2025, following the announcement of the Stargate initiative. She wanted to discuss opportunities for a site in Michigan.
An OpenAI spokesperson confirmed a virtual meeting in spring 2025 between Whitmer and CEO Sam Altman, along with representatives from energy company DTE and Related Digital. Whitmer's office declined to comment on what was discussed.
By May 2025-months before the proposal reached the township-Related Digital had purchased the site from three local landowners. The company evaluated four potential Michigan locations with DTE and construction firm Walbridge. Saline was selected for its access to power and existing transmission lines with excess capacity.
In late October, after the settlement was reached, Whitmer lauded the project. She said it would create 2,500 union construction jobs, 450 permanent on-site jobs, and 1,500 more in the community.
The Trump administration has also accelerated the pace. A July 2025 executive order streamlined permitting for projects over 100 megawatts or $500 million. Big Tech's hyperscalers are projected to invest roughly $630 billion to $700 billion in 2026 in AI-related infrastructure and data centers.
One resident refuses to accept the outcome
Kathryn Haushalter, a 42-year-old former U.S. Marine and mother of five, lives in a 200-year-old farmhouse across from the data center site. She and her husband bought the 60-acre property after she returned from Afghanistan in 2012. They renovated the house and plant about 150 native trees each year.
Now she can see the construction site's bright lights from her bedroom window before sunrise. She hears backup alarms from trucks throughout the day.
In December, Haushalter attempted to insert herself into the lawsuit as a defendant alongside the township. She argued that officials approved the settlement without holding a proper public meeting, as required under Michigan law. A county judge rejected her motion in February, citing its late timing and the difficulty of undoing a deal already in motion.
Haushalter filed a separate appeal with the zoning board, arguing that permits were issued improperly because the land remains zoned for agriculture. Under Michigan law, such an appeal can trigger an automatic stay on construction. Despite this, she said, residents have not received a hearing and construction has continued. The township is seeking dismissal of her lawsuit.
Haushalter's primary concerns center on water. Covering hundreds of acres with buildings and pavement changes how water moves through the land. Rain that once filtered into soil could run off into surrounding areas, increasing flooding risk. In an area with no municipal water system where residents rely on private wells, she worries that a data center drawing large amounts of groundwater could affect supply over time.
She also raised concerns about energy use. The facility will require as much electricity as a small city. When outages occur-common in rural areas-backup diesel generators often run continuously. "If the power goes out, they don't just shut it down," she said. "They bring in generators and run them around the clock. My kids are going to be outside breathing that."
Related Digital disputed characterizations of the project's impact, saying there has been "misinformation" particularly around water use. The company said the facility would rely on a closed-loop cooling system that does not consume large amounts of water. Ongoing water use would be limited to levels comparable to a standard office building, the spokesperson said. The project includes stormwater management improvements designed to better control runoff.
An Oracle spokesperson said the company "is committed to being a responsible partner" and noted that approximately two-thirds of the 1,000-acre campus will be preserved for open space, farmland, wetlands, and natural woods.
What comes next for Michigan
Saline will not be the last Michigan AI data center. Across southeast Michigan, similar projects are already in motion. Anthropic is the intended end user of a proposed hyperscale data center in Lyon Township, an hour northeast of Saline. Google is considering a one-gigawatt campus in Van Buren Township, near the Detroit airport.
Washtenaw County, where Saline Township is located, approved a resolution this month supporting local municipalities considering temporary moratoriums on new data center development. The move came after county leaders cited unanswered questions about land use, water, traffic, and long-term community impact.
In Saline Township, residents have shifted focus. At a March town meeting, officials offered only updates on the project's progress. Questions from residents centered less on stopping it and more on managing immediate impacts: truck traffic, noise, dust, and strain on local roads.
Those impacts are already visible. Heavy trucks full of gravel rattle through downtown Saline, prompting complaints about speeding, debris, and damage to newly repaved streets. Related Digital said it has taken steps to address concerns with traffic regulations and rules for vehicles.
Residents are now pursuing conservation easements-legal restrictions on development that protect farmland. The settlement included roughly $4 million for farmland preservation, potentially protecting some 1,000 acres through preservation agreements. Barry Lonik, a Michigan-based land preservation consultant with over three decades of experience, said that if enough landowners acted together, they could still draw a line against future industrial development.
"They're not just opposing this," Lonik said. "This is a community that regularly updates its master plan and zoning and decides what it wants to be. And then something like this comes in and just blows everything out of the water."
Haushalter said she has considered leaving-selling the property and moving elsewhere. But she worried about her neighbors. "It would have been the easiest thing for me to sell my farm and go somewhere so it doesn't affect me," she said. "But would that really benefit my neighbor down the road-the farmer who's been here for 100 years?"
She continues to appeal her case. "I feel like I'm playing by a different rule book," she said. "Like I'm playing baseball and they're playing football."
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