Whitmer-Backed $43 Billion Data Center Project Seeks Property Tax Break in Saline Township

LANSING, Mich.  A massive data center project backed by Governor Gretchen Whitmer's administration is seeking a 50% reduction in local real and personal property taxes as construction plans continue to move forward in Saline Township. Township officials are scheduled to consider Oracle's request for an Industrial Facilities Tax Exemption Certificate, a move that could reduce property taxes for the proposed $43 billion hyperscale data center over the next 12 years.

The project, which Whitmer has called "the largest one-time investment in state history," is being developed by Oracle, Related Digital, DTE Energy, and OpenAI on approximately 575 acres of farmland in Saline Township. If approved, the facility is expected to become one of the largest data center campuses in the country, with construction projected to be completed in 2028.

The tax request comes less than a year after the Saline Township Board of Trustees voted 4-1 against rezoning the property for the development. Two days later, Related Digital filed a lawsuit against the township, arguing the zoning decision prevented the project from moving forward. Township officials later entered settlement discussions after their attorney warned the litigation could become costly.

The Whitmer administration has strongly supported the project from the beginning. In December, the Michigan Public Service Commission, whose members are appointed by Whitmer, approved the project through an expedited review process. Whitmer later joined company executives at the project's groundbreaking ceremony in June, where a hot microphone captured her telling an Oracle executive that Michigan officials were accustomed to facing opposition before moving projects forward.

The development has also drawn political attention because of its connection to Secretary of State Jocelyn Benson, who is currently running to succeed Whitmer as governor in 2026. Benson's husband, Ryan Friedrichs, is a vice president at Related Companies, the parent company of Related Digital. Related Companies has said Friedrichs has not had any role in financing the Saline Township project and does not receive commissions tied to the development. Benson has also received campaign contributions from Related Companies founder Stephen Ross, while a fundraiser for her campaign was hosted earlier this year by Lisa Blau, the wife of Related Companies CEO Jeff Blau.

As the project has expanded, so has its projected economic impact. Developers now estimate the data center will generate more than $150 million annually in local tax revenue, even if the requested tax abatement is approved. Township officials have said large industrial developments commonly request similar tax incentives as part of economic development projects.

The proposed tax exemption must first be approved by the Saline Township Board. If approved locally, the request would then move to the Michigan State Tax Commission and the Michigan Economic Development Corporation for additional review before becoming final.

The project continues to divide opinion across Michigan. Supporters argue large data centers will bring billions of dollars in investment, high-paying jobs, and strengthen Michigan's growing artificial intelligence industry. Critics, including some local residents and bipartisan lawmakers, have raised concerns about energy demand, water use, farmland preservation, and whether taxpayers should subsidize large technology companies. Several Michigan communities have already adopted temporary moratoriums on new data center developments while those issues are debated.

The Question: Do you support offering tax incentives to attract large technology investments like the Saline Township data center, or should companies pay full property taxes from the start?