Oracle and OpenAI have broken ground for “The Barn”, a multi-billion-dollar data center campus being developed in Saline Township, Michigan. The ceremony took place in the presence of representatives from investors and other partners, as well as Michigan Governor Gretchen Whitmer.
Readers would recall that in April this year, the companies managed to complete financing for the US$ 16 billion campus, referred to as “The Barn”, named after a preserved red barn at the entrance along Michigan Avenue. The facility includes three single-story data center buildings with more than one gigawatt of planned capacity. It is being developed for Oracle as part of its work with OpenAI to expand computing infrastructure for AI workloads.
Project financing includes equity from Related Digital and funds affiliated with Blackstone, as well as long-term debt financing anchored by PIMCO-managed funds and accounts. The campus is expected to generate billions of dollars in tax revenue over its operating life, benefiting local government, schools, fire services, roads and libraries as detailed in an Oracle press release.
Sam Altman, CEO, OpenAI, said, “OpenAI is committed to doing it the right way: paying our own way on energy, protecting water supplies, and building in partnership with the communities that host us.”
Clay Magouyrk, CEO, Oracle, said, “American-led AI will strengthen our economy, secure AI infrastructure that advances American AI leadership while serving the local community, protecting natural resources, and bringing good-paying jobs to Saline Township and the state of Michigan.”
Governor Gretchen Whitmer, said, “The Barn will bring tens of billions of dollars of investment to Michigan” and emphasized how the facility will benefit both the local economy and ensure the environment remains safe.
C-level executives from partner companies also voiced their optimism for The Barn project’s progression.
Jeff Blau, Chairman of Related Digital and CEO, Related Companies, said, “This project represents one of the most significant infrastructure investments in Michigan’s history and will help power the next generation of American innovation and artificial intelligence.”
Nadeem Meghji, Global Head, Blackstone Real Estate, said, “The largest ever investment in the state of Michigan will deliver this critical AI infrastructure, this project will provide significant long-term benefits to the area and new investment initiatives for decades to come.”
Jim DeMare, Co-President, Bank of America, “Michigan exemplifies a state where strategic investment is driving long-term economic growth and facilitating American leadership in AI.”
The project’s LEED-certified buildings will use a closed-loop, air-cooled system designed to limit water consumption to levels comparable to a standard office building. Related Digital plans to preserve more than 750 acres of adjacent open space, farmland and wetlands.