OpenAI and Oracle plan 1 gigawatt Stargate data center in Michigan with Related Digital

(Reuters) -OpenAI, Oracle and Related Digital will build a more than one gigawatt data center campus in Saline Township, Michigan, as part of their Stargate initiative to expand the capacity of artificial intelligence infrastructure in the United States.

Thursday’s announcement underscores the AI ​​industry’s growing appetite for computing power, driven by the search for technology that can match or surpass human intelligence.

The companies said it was a multibillion-dollar investment, without disclosing the exact figure. Industry executives have said that 1 GW of computing power, enough to power about 750,000 U.S. homes, can cost about $50 billion.

Work is expected to begin in early 2026.

The project is part of Oracle and OpenAI’s 4.5 GW Stargate expansion and, along with six other US sites, brings the infrastructure group’s planned capacity to more than 8 GW and total investment to more than $450 billion over the next three years.

OpenAI said the move allows Stargate to move ahead of schedule to meet its $500 billion, 10 GW commitment. The startup shared some details about how it plans to finance expenses.

Earlier this week, it completed a restructuring that allows the creator of ChatGPT to move away from its nonprofit roots. Reuters reported it was laying the groundwork for an IPO that could value the company as much as $1 trillion.

But surging valuations of AI companies and their massive AI spending commitments, which total more than $1 trillion for OpenAI, have raised fears that the AI ​​boom could turn into a bubble.

OpenAI said Thursday that Related Digital will develop the Michigan project, which is expected to create more than 2,500 union construction jobs.

“This project will help ensure that Michigan plays a key role in building the AI ​​infrastructure that will power the next generation of American innovation,” said Peter Hoeschele, vice president of industrial computing at OpenAI.

(Betering by Adityya Anni and Akash Sriram in Begaluluure;