Full Breakdown
Saline Township, Michigan, Forced to Accept $16 Billion AI Data Center After Legal Battle
5/11/2026, 9:19:38 PM
The Disputed $16 Billion Data Center
Related Digital, a subsidiary of billionaire Steven Roth’s real-estate group, proposed a 21-million-square-foot data center on 575 acres of farmland in Saline Township (population ? 2,883). The project, valued at $16 billion, is slated for primary lease to OpenAI (CEO Sam Altman) and Oracle (founder Larry Ellison) under Donald Trump’s $500 billion “Stargate” AI infrastructure plan.
Background & Context
Across the United States, municipal governments increasingly confront developers seeking large data-center sites that many residents oppose. Saline’s case exemplifies the clash between top-down AI expansion and local zoning authority.
Timeline
- September – Planning commission rejects rezoning of 575 acres.
- Two days later – Related Digital sues, alleging “exclusionary zoning.”
- Following weeks – Township warns a University of Michigan partnership could bypass local rules; legal costs rise.
- Settlement – Saline signs agreement allowing the project.
- October – Lease to OpenAI and Oracle confirmed.
Key Players
Related Digital; Steven Roth; Saline Township board and planning commission; Fred Lucas, township attorney; Kathryn Haushalter, local resident; Sam Altman (OpenAI); Larry Ellison (Oracle); Donald Trump (Stargate initiative); University of Michigan.
Data & Statistics
Facility size: 21 million sq ft. Land: 575 acres. Project cost: $16 billion. Township population: ~2,883.
Official Statements & Responses
Township attorney Fred Lucas told Fortune the board and residents uniformly opposed the center and that “there were no good solutions.” Related Digital’s filing labeled the township’s action “exclusionary zoning.” The developer’s plan aligns the site with the national “Stargate” AI program.
Criticism & Opposition
Residents claim the center would impose environmental and social burdens on a small community. Critics highlight the gap between local preferences and a federally promoted AI push, framing the episode as a clash of capital and democracy.
Verbatim Quotes
- “I’m not sure there were any good solutions,” — Fred Lucas, township attorney
- “If you polled everyone on the township board, they would have said the same thing: they didn’t want a data center there. We didn’t invite them, we didn’t encourage them.” — Fred Lucas, township attorney
- “exclusionary zoning.” — Related Digital, in lawsuit
- “it feels like I’m playing by a different rule book. Like I’m playing baseball and they’re playing football.” — Kathryn Haushalter, local resident
Conflicting Reports & Gaps
Sources cite a $16 billion development while also referencing a $500 billion national AI initiative without clarifying their relationship. No public environmental impact study or cost-benefit analysis is referenced.
Why It Matters
The Saline dispute shows how AI-related infrastructure can override local zoning, setting a precedent for future projects and raising questions about community consent, environmental stewardship, and the balance of power between tech firms and municipalities.
What’s Next
With the settlement finalized, construction is expected to proceed and the facility will be leased to OpenAI and Oracle. The township will monitor operational impacts as broader debates over AI infrastructure continue at state and federal levels.
