University of Michigan to Approve Land Purchase for $1.2B Data Centers Near Ypsilanti

University of Michigan officials plan to approve the purchase of land for use in building proposed $1.2 billion data centers near Ypsilanti.

The university's Board of Regents plans to vote on Thursday, June 12, on whether to greenlight the purchase of approximately 124 acres of undeveloped land at 10455 and 10635 Textile Road in Ypsilanti Township.

According to an MLive report, Los Alamos National Laboratory, which developed the atomic bomb during the 1940s, and the university are collaborating on two data centers to support artificial intelligence and high-capacity computing.

Last year, the university created a five-year $15-million research contract with the laboratory to support advanced technologies, such as AI and sophisticated computer modeling, and “to address complex challenges like unlocking fusion's potential as a clean-energy source,” according to a university source.

One center would support classified activities, and the other would be used for non-classified AI computing and research. University officials stated that the new data centers will focus research efforts on energy, national security, and scientific advancements.

“We are acquiring this strategically located land to construct a future computing center,” Geoffrey Chatas, the university's executive vice president and chief financial officer, outlined in an action request to the university board. According to Chatas, the university has negotiated a purchase price of $65,000 per developable acre. A closing date has not been set.

According to MLive, the university will apply bond proceeds or central reserves to the purchase.

Several community activists and residents have pushed back against the university's plans for the sites. In May, activists protesting the proposed centers interrupted a lecture on artificial intelligence on campus.