Oakland University in Michigan leverages 26-megawatt capacity for new AI data center

Oakland University is partnering with a private company to build a new data center on its Michigan campus, leveraging the school’s existing 26-megawatt power capacity from an on-campus DTE Energy substation. The project will relocate the university’s current data center from its science complex to create space for expanded research facilities and a new artificial intelligence institute.

What you should know: The university has received interest from 32 companies for the data center partnership and plans to select a partner by August.

• The new facility will be built in Parking Lot 35 on the southwest end of campus, adjacent to the existing power substation.
• OU will present the final proposal to its board of trustees at their October meeting after finalizing agreements with the selected company.

Why this matters: The data center positions Oakland University to expand its AI research capabilities while potentially creating jobs for students and boosting the local economy.

• “The new data center would bring potential for smart campus technology, artificial intelligence research, experimental and digital learning, jobs for students and the local economy,” said Steven Mackey, vice president for Finance and Administration.

Key details: The university’s strategic advantage lies in its existing power infrastructure, which provides immediate access to substantial energy capacity.

• “The opportunity is there for us because we have a DTE substation on our campus and that substation has 26-megawatt capacity available, so we have that asset built into our campus,” Mackey explained.
• The 26-megawatts represents total power capacity needed to run and cool equipment and other supporting infrastructure.

In plain English: A data center is essentially a warehouse filled with powerful computers that store and process digital information—like a massive digital filing cabinet that needs constant electricity and cooling to prevent overheating.

Market context: Michigan currently hosts 53 data centers, with 26 located in the Detroit area, according to datacentermaps.com.

• For comparison, Edged Data Centers built a 114,000-square-foot facility in Kansas City in 2025 with similar 26-megawatt power availability, estimated to cost over $140 million.

Next steps: OU is working with consulting firm Brailsford and Dunlavey to evaluate proposals and make recommendations to the university before the August selection deadline.