Plans for a transformative $16 billion data center campus in Saline Township, Michigan, have taken a significant step forward, as financing for the project has been officially approved. Announced by Related Digital and Blackstone, the financing includes equity contributions from the two entities, with additional fixed-rate financing anchored by PIMCO-managed funds and accounts.
"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", said Jeff T. Blau, CEO of Related Companies and Chairman of Related Digital. He added, "Major construction is well underway in Saline Township, momentum is strong, and we are laser focused on executing with the same discipline that has defined Related for more than 50 years."
The project, initiated by Related Digital, a platform specializing in data center development and investment, is also being supported by financial advisors Bank of America, Goldman Sachs, and Wells Fargo. While the approval of financing marks a pivotal milestone, the official closing of the financing deal remains pending.
The sprawling campus, set to be located in Washtenaw County, will be known as "The Barn", paying homage to a historic red barn preserved at the entrance along Michigan Avenue. The development will feature three single-story data center buildings and will cater to Oracle, a major global technology company.
The new facility, known as the 1,383-megawatt Stargate facility, adds to Oracle's growing list of data centers, following the tech giant's announcement of six other sites across the United States. In December, the Michigan Public Service Commission approved energy provider DTE's contracts to supply power for the data center campus. DTE plans to use existing resources and a new battery storage investment financed by Oracle, ensuring that 100% of the facility's power needs are met.
Related Digital has highlighted the potential economic benefits of the project, stating that it will create 2,500 union construction jobs and result in over 450 permanent onsite positions. Additionally, the development is expected to generate significant property tax revenue that will benefit local fire departments and schools.
The project is designed not only to meet growing digital infrastructure needs but also to provide financial savings for Michiganders. Related Digital stated, "As a result, this project is expected to create $300 million in savings for DTE's existing customers thanks to the project's contribution towards the fixed costs of grid maintenance and improvements."
While the project promises economic growth and technological advancement, it has sparked protests among some Michigan residents, including those in Southfield and Howell Township, where other data centers are under consideration. Community members have voiced concerns over transparency in the development process, but no details on these objections were included in the announcement.
With construction already in progress, the Saline Township data center campus remains a focal point in the broader conversation about the future of digital infrastructure and its implications for local communities. As progress continues, all eyes will be on Saline Township to see how this ambitious development unfolds.
