---
title: "Residents Furious After Their Town Board Rejected an OpenAI Data Center, But a Billionaire Developer Forced It Through Anyway"
description: "A billionaire-owned real estate company forced a small Michigan town to accept a 21 million square foot data center."
date: "2026-05-10"
modified: "2026-05-10"
authors:
  - name: "Joe Wilkins"
    job_title: "Correspondent"
    link: "https://futurism.com/authors/jwilkins"
url: "https://futurism.com/artificial-intelligence/data-center-openai-residents"
categories:
  - "Artificial Intelligence"
  - "Ethics"
---

# Residents Furious After Their Town Board Rejected an OpenAI Data Center, But a Billionaire Developer Forced It Through Anyway

![A person wearing a blue hoodie and a gray cap with a yellow "M" holds a protest sign that reads "BIG TECH BILLIONAIRES: HANDS OFF MICHIGAN NOW" with two red handprints and a red underline. Another person in a gray jacket and blue beanie stands in the background holding a partially visible sign. The scene appears to be outdoors in a city with some snow on the ground.](<https://futurism.com/wp-content/uploads/2026/05/data-center-openai-residents.jpg>)
*Jim West/UCG/Universal Images Group via Getty Images*

Across the United States, the fight over data center construction has largely pitted stamp-happy municipal governments against their own residents. As these battles multiply, local officials are [increasingly pressured](<https://www.governing.com/infrastructure/data-centers-and-the-abuse-of-secrecy>) to approve projects their constituents oppose, while more and more voters take their struggles to the [ballot box](<https://futurism.com/artificial-intelligence/archbald-pennsylvania-data-centers>).

Residents in Saline Township, Michigan, however, thought they had avoided the drama after their township board *and* planning commission both voted to decline a 21 million square foot data center in their backyard. It was exactly what Saline's 2,883-some residents wanted. Unfortunately for them, the data center developer soon sued the tiny township, [*Fortune* reported](<https://fortune.com/2026/05/06/ai-data-center-michigan-saline-politics-farmland/>), which was ultimately bullied into accepting the $16 billion development.

Back in September, Saline's planning commission rejected the request to rezone 575 acres of farmland for the data center, proposed by the company Related Digital, a subsidiary of a real estate conglomerate owned by billionaire Steven Roth (who's been in the news lately [for other reasons](<https://futurism.com/future-society/billionaire-rich-taxes-slurs>).)

Two days later, Related Digital filed suit, alleging the township had practice "exclusionary zoning." The local officials were up against the wall: a lengthy legal battle risked depleting the township's coffers, and even if they won in court — an unlikely proposition — Related Digital could have forced the data center anyway by partnering with the University of Michigan, which can bypass local zoning laws.

The township soon settled, signing an agreement allowing the project to proceed. Later in October, [it was revealed](<https://openai.com/index/expanding-stargate-to-michigan/>) that the data center would be primarily leased to Sam Altman's OpenAI and Larry Ellison's Oracle, as part of Donald Trump's $500 billion [AI infrastructure initiative](<https://futurism.com/the-byte/trump-ai-stargate-uae-human-rights>), dubbed "Stargate."

"I'm not sure there were any good solutions," Fred Lucas, the township's attorney told *Fortune*. "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."

The legal strong-arming in Saline exposes a fundamental contradiction in America's AI infrastructure boom: it's being imposed from above by tech billionaires and their political allies, not chosen by the communities forced to live with it. Town after town has been compelled to absorb the [environmental](<https://futurism.com/science-energy/data-centers-emit-more-than-countries>) and [social costs](<https://futurism.com/artificial-intelligence/elon-musk-ai-facility-mordor>) of an industry obsessed with expansion — making it clear that when capital and democracy collide, capital wins.

Kathryn Haushalter, a local mother who lives near the data center site told *Fortune* that "it feels like I'm playing by a different rule book. Like I'm playing baseball and they're playing football."

**More on data centers:** *[You'll Never Guess Trade Unions’ Position on AI Data Centers](<https://futurism.com/artificial-intelligence/union-labor-data-center>)*

## Author
At Futurism, I focus on the intersection of technology and power — examining the economics, history, and politics behind today’s dystopian headlines. As a writer, I’m interested in topics ranging from AI’s impact on labor to startups nobody asked for. My prior work includes bylines in Jacobin, Verso, and Blue Labyrinths. My work for Futurism has been cited by publications including Forbes, The Guardian, MIT Technology Review, Time, The Nation, Mother Jones, The Verge, and Wired. I grew up in Michigan, attending Central Michigan University as well as Ball State University, where I earned a master of music. I now live in Brooklyn with my girlfriend and our cat Ziti. On weekends, you can find me hunched over a cold pint arguing geopolitics with the other transplants.

### Author social links  
[Bluesky](<https://bsky.app/profile/joeonhere.bsky.social>)