The tech giants launched a huge 1-GW data center in Saline Township that would drive the next wave of AI innovation as part of their $450 billion Stargate expansion. In 2026, construction is expected to begin.

As part of their Stargate initiative to increase the capacity of artificial intelligence infrastructure in the United States, OpenAI, Oracle, and Related Digital will construct a data-center complex in Saline Township, Michigan, with a capacity of more than one gigawatt.

The announcement on Thursday highlights the growing demand for processing power in the AI sector, which is fueled by the desire to develop technology that can either equal or exceed human intelligence. Without revealing the precise amount, the firms claimed it was a multi-billion-dollar investment. According to industry leaders, the cost of 1 GW of computing power, enough to power about 750,000 houses in the United States, can reach $50 billion.

Early in 2026 is when the construction is expected to start. Together with six additional U.S. locations, the project is a component of Oracle and OpenAI's 4.5-GW Stargate expansion, increasing the infrastructure group's anticipated capacity to over 8 GW and total expenditure to over $450 billion over the next three years.

According to OpenAI, the action allowed Stargate to fulfill its $500 billion, 10-GW pledge ahead of schedule. A few facts about how the startup intends to finance the expenditure have been disclosed.

It finished a reorganization earlier this week, allowing the company that created ChatGPT to depart from its charitable origins. According to Reuters, the corporation is preparing for an IPO that may raise its valuation to $1 trillion. However, rising AI company valuations and their enormous AI spending commitments—more than $1 trillion for OpenAI—have sparked concerns that the AI boom is turning into a bubble.

The Michigan project, which is anticipated to generate over 2,500 union construction jobs, will be developed by Related Digital, OpenAI said on Thursday.

According to Peter Hoeschele, Vice President of Industrial Compute at OpenAI, this project will help guarantee that Michigan plays a significant role in developing the AI infrastructure that will drive the next wave of American innovation.