Oracle is partnering with Related Digital and DTE Energy, to construct Oracle’s AI data center in Saline Township, Michigan.
As the future tenant, Oracle will operate the data center once it’s delivered and provisioned, outfitting it with the latest technology for its customer, OpenAI, according to Oracle.
With 147 active data centers around the world, and 64 more on the way, Oracle is experienced in building data centers and leverages this expertise to ensure its campuses meet the needs of both customers and communities, the company said.
Liquid cooling is an essential part of many data centers’ infrastructure. Some developers design data centers that consume water at an enormous rate because the water evaporates as it cools the hardware, requiring potentially millions of gallons of water daily. But according to Oracle, its campus will use closed-loop, non-evaporative cooling systems, which means the cooling system tank only needs to be filled once, putting the annual water consumption on par with an average office building.
Additionally, Oracle will pay 100% of the energy costs to power the Saline Township campus, including battery storage. Oracle will also pay for new transmission lines to the campus and an onsite substation.
Under the terms of its contracts, which the Michigan Public Service Commission approved, DTE will provide Oracle electric service under an existing rate schedule for the next 17+ years. The agreement includes enhanced protection for residents, with provisions including credit and collateral requirements.
DTE stated that it will not impact existing rates or increase the cost of service for existing customers. Importantly, the agreement follows Michigan law, recently passed, prohibiting utilities from burdening ratepayers with the electric costs of data centers.
By 2029-2030, the overall estimate is that Oracle will contribute approximately $300 million annually to making energy more affordable for consumers.
This data center will create 2,500 union construction jobs. Once complete, the data center campus will provide an estimated 450 good-paying jobs on-site and an estimated 1,500 across Washtenaw County, including IT technicians, systems administrators, electrical engineers, supply chain, inventory control, and physical security specialists, Oracle said.
According to Oracle, the project is also investing millions to improve schools and public infrastructure, including $8 million annually for area schools, at least $1.6 million each year in direct tax revenue for Saline Township, and more than $14 million in direct community benefits to support emergency services and local fire department, preserve farmland, repair Township buildings and facilities, and make investments in playgrounds and parks.
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