New York Bans AI Data Centers as Michigan Project Begins

A consortium including Oracle Corporation, OpenAI, Related Digital, Blackstone, and Walbridge has begun construction on the $16 billion Stargate data center in Saline Township, Michigan. The project, known as The Barn, broke ground on June 1, 2026, after developers sued the township board to overturn a rezoning denial. An October consent judgment eventually allowed the project to proceed in exchange for $14 million in community benefits, despite local concerns regarding farmland loss, water supply, and power grid stability.

This project is part of a broader national trend of resistance to AI infrastructure. In early 2026, communities blocked or delayed over $130 billion in projects, including a $1 billion Google proposal in Indianapolis and a $3.6 billion Amazon campus in Tucson, Arizona. New York recently became the first state to enact a statewide moratorium on certain AI data center developments. Governor Kathy Hochul also plans to repeal sales tax exemptions for large data centers to increase equipment costs for developers.

The conflict has influenced political platforms in the Michigan Democratic primary for U.S. Senate. Candidate Haley Stevens supports AI development as a driver for jobs, while candidate Abdul El-Sayed proposes that AI companies operate as public-benefit corporations with more oversight. Meanwhile, the White House is pursuing a voluntary pledge with developers to prevent taxpayers from funding AI expansion. In response to U.S. volatility, infrastructure provider Bitzero Inc. is expanding operations into Norway and Finland to secure low-cost renewable power.