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Construction of a massive $16 billion hyperscale data center near Ann Arbor, Michigan, is moving forward after securing financing from a group of institutional investors, including Blackstone. Known as "The Barn", the facility is being developed by Related Digital in Saline Township and is designed to support Oracle and its customer OpenAI, serving as a critical infrastructure hub for artificial intelligence technologies.
The financing package, announced on April 24, is backed by equity from Related Digital, funds affiliated with Blackstone, and debt anchored by accounts managed by PIMCO. According to Related Digital, the financing is subject to standard closing conditions. Jeff Blau, CEO of Related Cos. and chairman of Related Digital, described the deal as a testament to the project’s significance.
"The strength of this financing is a powerful validation of what we have built at Related Digital and of the critical role this project will play in America's digital future", Blau said.
Blackstone highlighted the project’s importance in meeting the growing demand for digital infrastructure driven by artificial intelligence and the broader digital economy.
"Demand for digital infrastructure continues at a breathtaking pace, driven by AI and the broader digitalization of the economy", said Nadeem Meghji, Blackstone Real Estate's global head. "We’re excited to back the largest ever investment in the state of Michigan … as it delivers this critical AI infrastructure."
Construction on the 250-acre site began in early 2026 and is expected to reach full completion by the end of 2027. The campus will feature three single-story, 550,000-square-foot buildings, an 80,000-square-foot core building, and two dedicated substations. Once finished, the facility will deliver over 1 gigawatt of computing capacity, making it one of the largest data centers in the United States.
The project has been designed with sustainability in mind, incorporating a closed-loop, air-cooled system to minimize water use and seeking LEED certification. It also relies on innovative battery storage to supplement its power supply, enabling the use of just 12 emergency generators - significantly fewer than the 600 typically needed for a data center of this scale.
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Despite progress on construction and financing, legal challenges have emerged regarding the data center’s power supply agreements. The Michigan Public Service Commission (MPSC) approved specialized energy contracts between DTE Electric Co. and Oracle’s subsidiary, Green Chile Ventures LLC, to meet the facility's substantial energy demands. However, Michigan Attorney General Dana Nessel filed an appeal on April 17, arguing that the contracts should have undergone a contested case process, allowing for greater public scrutiny.
Nessel believes the expedited approval process used by the MPSC lacked transparency and violated Michigan utility law. "I've sought a contested case review of these data center contracts since they were first filed in October, and the law requires one", she said.
The appeal questions whether the agreements, which include a 19-year primary supply contract and a companion energy storage agreement, sufficiently protect ratepayers. Critics, including environmental groups like the Sierra Club and the Natural Resources Defense Council, have raised concerns about the lack of public disclosure of certain contract details.
Shannon Fisk, an attorney with Earthjustice, underscored the potential risks: "While billions of dollars and massive amounts of energy will be needed to serve the proposed Oracle data center, DTE provided virtually no support for its claim that the project somehow won't raise costs for everyday customers or undermine Michigan's clean energy laws."
Despite regulatory challenges, the project is expected to generate significant economic benefits. Developers anticipate creating over 2,500 union construction jobs, 450 permanent on-site positions, and more than 1,500 indirect jobs across the region. Mahesh Thiagarajan, executive vice president of Oracle Cloud Infrastructure, emphasized the project’s transformative potential.
"The rapid progress at our Saline Township data center underscores the urgency and scale of building America's next-generation AI infrastructure", Thiagarajan said. "Together with our partners, we are not just building a data center - we are creating high-quality jobs … [and] driving long-term economic growth."
As the appeal against the MPSC’s contract approval moves through the Michigan Court of Appeals, the outcome could set a precedent for how utility-scale AI infrastructure projects are structured and regulated in the future. Meanwhile, construction continues, with developers and investors confident in the project’s strategic and economic value.
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