Construction of a massive $16 billion hyperscale data center near Ann Arbor, Michigan, is moving forward after securing financing from a group of institutional investors, including Blackstone. Known as "The Barn", the facility is being developed by Related Digital in Saline Township and is designed to support Oracle and its customer OpenAI, serving as a critical infrastructure hub for artificial intelligence technologies.
Financing Boost for High-Tech Development
The financing package, announced on April 24, is backed by equity from Related Digital, funds affiliated with Blackstone, and debt anchored by accounts managed by PIMCO. According to Related Digital, the financing is subject to standard closing conditions. Jeff Blau, CEO of Related Cos. and chairman of Related Digital, described the deal as a testament to the project’s significance.
"The strength of this financing is a powerful validation of what we have built at Related Digital and of the critical role this project will play in America's digital future", Blau said.
Blackstone highlighted the project’s importance in meeting the growing demand for digital infrastructure driven by artificial intelligence and the broader digital economy.
"Demand for digital infrastructure continues at a breathtaking pace, driven by AI and the broader digitalization of the economy", said Nadeem Meghji, Blackstone Real Estate's global head. "We’re excited to back the largest ever investment in the state of Michigan … as it delivers this critical AI infrastructure."
