LANSING, MI (WOWO) Michigan is experiencing growing interest from technology companies to build hyperscale data centers in at least 10 communities across the Lower Peninsula. These facilities house large numbers of servers to provide cloud storage, artificial intelligence processing, and other computing services.

The first major project, a $7 billion campus in Saline Township led by Oracle, OpenAI, and Related Digital, is scheduled to open in 2027. Hyperscale data centers can occupy hundreds of acres and consume electricity comparable to that of a small city. The Saline Township facility alone could use 1.4 gigawatts of power, roughly 25% of DTE Energy’s system-wide load.

Michigan law provides sales tax exemptions for data centers investing at least $250 million and creating 30 or more high-wage jobs. Local communities are evaluating environmental and infrastructure impacts, including water usage and electricity transmission upgrades. Utilities are negotiating contracts to meet demand without raising costs for other customers, while state regulators review long-term energy planning.

Despite their size, these facilities create relatively few direct jobs, but developers say the investments will also bring significant construction and economic activity to the region.