Close enough to affect the greater Ann Arbor community for the worse, OpenAI and its parent company, Oracle, plan to open a new data center. The two companies are spending over seven billion dollars on a hyperscale campus in Saline Township, rezoning 575 acres for the plant. This will inevitably raise utility costs, reduce grid reliability and pollute the environment while not being fully transparent and shrouded in incomplete disclosures about how it can impact the community.
The project for the construction of the center is supported by Michigan’s Governor Gretchen Whitmer, who believes it is crucial for Michigan’s economic future and signed a bill that removes the state’s previous six percent sales tax and allows the use of taxes on centers that spend over 250 million to build and expand data centers. However, she is concerned about public opinion and the views of local officials.
“Can Michigan benefit from these jobs and build data centers in a smarter way while upholding our strong environmental laws to protect our precious natural resources? We have an opportunity to do both. We can set an example for the rest of the nation on how to build these facilities the right way and grow our economy at the same time,” Whitmer, in a speech addressed to Lansing, said.
Though residents of Saline think differently, most people in Saline Township rejected the proposal to rezone land for the center, worried about not having the emergency infrastructure for the center, like power subsystems, ventilation, backup generators and fire suppressants. So, the data center developer, Related Digital, sued the township. This was a strategic tactic for the corporation because they knew a smaller town like Saline would not be able to take it, as Oracle has the resources to hire the best lawyers and legal personnel.
The township, facing high litigation costs, was forced into settling. The parties agreed that the data center would have limits on water usage and noise and would not be able to expand further on the site to preserve wetlands and farms, along with Oracle having to invest in local projects. The data center will now start construction in early 2026.
Large data facilities need water for the cooling of AI machines, which puts a strain on available drinking water. In addition to risking the Great Lakes due to fossil fuel consumption, this construction also contributes to global warming. AI plants such as these can fuel algae blooms in the Great Lakes, affecting vast ecosystems and drinking water. But during the construction of the center, it may cause problems.
“When they make gravel pits, it causes water problems for people who live in the area, because it lowers the water levels,” CHS computer science teacher George Lancaster said.
During construction, holes in the ground that are filled with gravel are made. This gravel can be used for laying foundations for roads, buildings and pipes. These pits lower the water level in the surrounding area because they act like a well and hold water. Lowering the amount of water in an area can dry out wetlands and streams. This data center is planned to be in operation by 2028, leading to 2 years of habitat loss in the Seline township area.
This data center will be partly powered by DTE Energy, which is the primary energy provider in Saline. The two companies currently have a deal for DTE Energy to provide OpenAI with 1.4 gigawatts of power. This is enough to power over a million homes.
Data centers increase energy demand due to the need to cool AI chips, maintain lighting and build the campus. This stress on local power grids drives up wholesale electricity prices and increases consumer costs. The costs for this center will be passed on to the consumer because it creates competition for the energy, while being a mockery of Michigan’s environmental and clean energy efforts.
“Thanks to Michigan, America is closer to winning the AI race,” a blog on the Oracle website says.
The corporate narrative does not show the uglier truth. But the cost of this so-called AI race in Michigan is raising utility costs for consumers and polluting the environment, impacting many.
The only way to fight for change is by educating yourself first. Saline will not be the only township in the state impacted by AI data centers, but it should be used as a lesson, as plans are underway in Benton Township, Grand Rapids, and Southfield to build more data centers. Every Michigander should ask: Will I be a partner in so-called progress, or a resource that will be consumed? Personally, I don’t think it is worth the resources that are consumed if data center is not properly regulated.
