Data center construction jobs are temporary (18-24 months). Permanent operational jobs are minimal (30-50 per facility). And those operational jobs are increasingly automated by the AI the data centers support.
December 28, 2025
Bottom Line Up Front
Blue Owl Capital backs out of Oracle/OpenAI Saline financing as Oracle’s debt crisis deepens. Van Buren Township faces January 14 decision on 1GW Panattoni data center while Lyon Township residents discover September approval happened without public notice. Tech layoffs hit 209,838 in 2025 (down 12% from 2024). Great Lakes water levels continue decline—all lakes except Erie below long-term averages.
This Week’s Intelligence
INFRASTRUCTURE DEVELOPMENTS
Blue Owl Capital Exits Oracle/OpenAI Saline Financing
Financial Times reported December 18 that Blue Owl Capital, one of Oracle’s expected equity partners for the Saline Township data center, pulled out of financing negotiations. This came just hours before the Michigan Public Service Commission approved DTE’s contracts to power the facility.
Oracle insisted to Financial Times that Related Digital selected “the best equity partner from a competitive group of options” and claimed the equity deal is “moving forward on schedule and according to plan.” Related Digital declined to name the new investor.
The timing exposes financial instability: Blue Owl’s withdrawal coincided with:
- Oracle’s stock down 15% from recent highs
- Moody’s and S&P edging toward reclassifying Oracle bonds as junk debt (Wall Street Journal, November)
- Oracle posting negative $10 billion free cash flow in Q2 (reported December 11)
- $248 billion in lease commitments for data centers not yet built
What this means for Saline: The Michigan Public Service Commission approved power contracts for a project whose equity financing collapsed the same day. Related Digital now has an unnamed replacement investor for a $7 billion project from a developer with deteriorating credit ratings.
Community protection reality check: Dan Scripps, MPSC Chair, emphasized contracts include “upfront collateral from the tech companies” and “don’t assume the customer will stay financially solvent.” But if Oracle’s unnamed equity partner fails to materialize or Oracle enters financial restructuring before construction completes, communities face:
- Tax breaks already committed for infrastructure that never materializes
- DTE grid upgrades potentially stranded
- No recourse for promised job creation that never happens
Planet Detroit notes the MPSC’s decision “denies ratepayer advocacy, environmental, and other groups an opportunity to file testimony on the project’s impacts as part of a contested case.” The fast-track ex parte approval locked in contracts before Oracle’s financial instability became fully visible.
Sources: Financial Times, Planet Detroit, Bloomberg, Wall Street Journal
Oracle Delays Multiple OpenAI Data Centers to 2028
Bloomberg reported December 12 that Oracle is pushing completion dates for several OpenAI data centers from 2027 to 2028, citing “labor and material shortages.” Oracle disputes this characterization but the stock dropped another 4.5% on the news.
Combined with the Blue Owl withdrawal, this creates a pattern:
- December 11: Oracle posts negative $10B cash flow, stock drops 11%
- December 12: Bloomberg reports 2027→2028 delays, stock falls 4.5%
- December 18: Blue Owl exits Saline financing same day as MPSC approval
- December 19: Financial Times confirms equity partner change
The disconnect: Michigan approved permanent tax breaks and 17-year power contracts for a developer facing simultaneous financial pressure, equity partner withdrawals, and construction delays across multiple projects.
Sources: Bloomberg, Oracle public statements, Planet Detroit
Lyon Township Residents Discover September Data Center Approval
While Saline dominated headlines, Lyon Township residents learned December 11 that a 1.8 million square foot, six-building data center received conditional planning commission approval in September—without public hearings or community notification.
Project Flex (Verrus/Alphabet/Sidewalk Infrastructure Partners):
- Size: 172 acres, 1.8M sq ft across six buildings
- Investment: Estimated $4 billion ($4B divided by ~75 permanent jobs = $53 million per job)
- Developer: Verrus (backed by Sidewalk Infrastructure Partners, which has Google parent Alphabet as investor)
- Power: Unknown—DTE hasn’t disclosed requirements
- Water: Claims 15,000 gallons/day vs. typical 5.25M gallons/day for this size
- Status: Conditionally approved September 8, 2025 by planning commission
- Still needed: Sound study (due 2027), detailed engineering, agency approvals
How residents found out: Facebook and neighbors. Not from township officials.
The approval process:
- No public hearings (data centers are “permitted use” in industrial zones)
- Planning commission (appointed, not elected) approved with conditions
- Residents discovered via social media in December
- Township announced “informational meeting” for late January 2026—four months after approval
Mike Kazy, who serves on the Downtown Development Authority board, discovered the project through his official role and took it upon himself to notify neighbors. “I felt that was my obligation,” Kazy told WXYZ.
Kimberly Killian, Lyon Township resident: “I’m extremely upset, I’m heartbroken, nobody wants that in their backyard.”
The pattern is identical to Saline and Van Buren:
- Industrial zoning allows data centers “by right”
- Appointed planning commission approves (not elected trustees)
- No public hearings required
- Residents discover via social media after approval
- Township says “hands are tied” by existing zoning
Verrus claims different approach:
- Uses “flexible grid assets” technology validated at National Renewable Energy Lab
- Battery systems can absorb excess power within one minute if grid overloaded
- Closed-loop cooling (not evaporative) reducing water consumption
- Six buildings constructed one per year over six years
Township officials’ response: Township Supervisor Patty Carcone compared opposition to when “people went crazy” over cell phone towers. “They thought they would grow a third eye, that they would pollute the water… They are not harmful and there is no proof that it is detrimental.”
The tax reality: Township Supervisor noted taxes would benefit DDA, schools, library, and county—”not the township’s general fund, police or fire services.” Township ended tax abatements three years ago but is “reexamining that decision.”
A Change.org petition to stop the Lyon Township data center has launched, with residents demanding MPSC, Governor Whitmer, and township trustees halt the project.
Sources: WXYZ, Crain’s Detroit Business, The Oakland Press, Planet Detroit, Lyon Township documents, Change.org
Van Buren Township: January 14 Decision Looms
Van Buren Township Planning Commission could vote January 14 on Panattoni Data Center Group’s proposal for a 1-gigawatt facility on 282 acres near I-94 and Haggerty Road.
Project Cannoli details:
- Size: ~280 acres, approximately half developed
- Power: 1 gigawatt (enough for 800,000 homes)
- Developer: Panattoni Data Center Group (first Michigan project)
- Tenant: Not identified (but likely Oracle/OpenAI or similar hyperscale)
- Cooling: Not determined—possibly mix of air and water cooling
- Backup power: Diesel generators during outages
- Status: Planning Commission meeting January 14, township board has final say
The zoning argument: Adam Kramer, Panattoni’s head of data centers, argues this project is different because the land is already zoned industrial “by right”—unlike Saline and Augusta which required agricultural rezoning.
“We went out and found industrial land that was zoned for data center by right, which means the township’s master plan said this is where we want data centers and that’s where we’re putting a data center,” Kramer told WXYZ.
Township officials’ position: Supervisor Kevin McNamara says Van Buren already hosts “one of Michigan’s largest data centers” but current proposals are “much larger.” Despite community opposition, McNamara indicates the project is “likely out of their hands” due to existing zoning.
Community concerns at December 16 meeting:
- Tracy Osborne (lives near site): “Is that going to affect my family? Am I going to hear this hum at all hours of the day and night?”
- Wendy Albers: “There’s environmental concerns, the water, nature, like wildlife. Where is everything going to go?”
- Rep. Reggie Miller (D-Van Buren Township): Criticized use of NDAs, expressed concerns about water contamination and ratepayer impacts
Environmental justice context: Courtenay Hall, Van Buren resident, noted the area already confronts Wayne Disposal landfill issues—which has taken in hundreds of thousands of tons of Manhattan Project-era radioactive waste and is seeking 23% capacity increase.
According to MiEJScreen (Michigan’s environmental justice screening tool), Van Buren Township faces existing environmental burdens that would be compounded by data center impacts.
Tax implications: McNamara expects developer to request additional 50% tax break using Public Act 198 (state tax abatement law for manufacturers) on top of the 6% sales/use tax exemption through 2050.
Open house response: December 11 open house packed with residents. Panattoni and DTE representatives present but many questions went unanswered, particularly around:
- Total water consumption
- Impact on residential electricity rates
- Specific power requirements from DTE
- Long-term employment numbers
Next steps: January 14, 2026 Van Buren Township Planning Commission meeting, 5:30pm, Board of Trustees Room, Township Hall, 46425 Tyler Road.
Sources: WXYZ, FOX 2 Detroit, Planet Detroit, WEMU, MITechNews
Saline Construction Begins Amid Legal Challenges
Despite the legal settlement that enabled the project, early construction work has begun at the Saline Township Stargate site. MLive reports gravel trucks on back roads, DTE trucks blocking lanes, and constant backup alarm noise from neighboring residents.
Current status:
- Site preparation underway
- Court settlement requires construction traffic to use Michigan Avenue/U.S. 12 (not unpaved roads)
- Awaiting full construction permits from EGLE
- Awaiting wetlands and Saline River impact permits
- Legal intervention filed by resident challenging Open Meetings Act violations
One Saline resident filed legal intervention seeking to block the project over allegations township officials violated the Open Meetings Act when they approved the settlement with Related Digital and property owners.
The settlement context: Township attorneys told board members they would lose the Related Digital lawsuit and face $25-50 million in damages (at $55,000/acre for 575 acres). Township has $500,000 insurance coverage for legal fees and is running a budget deficit with $747,000 revenue vs. $1M+ expenses.
Supervisor Jim Marion was the only board member who voted against pursuing settlement. “I was trying to stick up for the township residents,” Marion told MLive. “If we would have put it on the ballot, it would have been overwhelmingly against it.”
But does he think the township had a chance of winning in court? “No. Not according to our attorneys. Both of them said we were going to lose.”
Sources: MLive, Planet Detroit, Saline Township records
POLICY DEVELOPMENTS
Attorney General Dana Nessel Challenges Consumers Energy Data Center Rules
Michigan Attorney General Dana Nessel is challenging Michigan Public Service Commission rules on data centers powered by Consumers Energy, calling them inadequate for protecting ratepayers.
This follows her earlier push for deeper review of the DTE/Oracle/OpenAI contracts, which the MPSC approved via fast-track ex parte process without contested case hearings.
Nessel’s concerns center on whether Michigan’s data center legislation—which promises ratepayer protection—actually provides enforceable safeguards or just vague language with limited detail.
The regulatory gap: Douglas Jester, consultant with 5 Lakes Energy, warned in October that “the existing framework for allocating costs could leave residential ratepayers and other customers paying for a portion of the electric generation needed solely to power large data centers.”
Demand from data centers without sufficient generation could also drive wholesale power cost increases that filter down to other customers, Jester noted.
Sources: Planet Detroit, Michigan Advance
Detroit News: Data Centers Raise Electricity Prices, Economists Warn
Detroit News published analysis December 23 examining whether Michigan residents will see electricity bill impacts from data center development despite legislative promises of ratepayer protection.
The timing—just five days after MPSC approved Oracle/OpenAI contracts—suggests growing concern that “no impact on rates” promises may not withstand scrutiny as multiple gigawatt-scale projects come online simultaneously.
The fundamental question: Can DTE and Consumers Energy add 2.4+ gigawatts of new load (Saline 1.4GW + Van Buren 1GW + others) without affecting existing customers when:
- Michigan’s total DTE capacity is ~18.6 GW
- Grid rebuild of one power plant resulted in $383M verdict for botched work
- All Great Lakes except Erie are below long-term water averages
- Generation capacity expansions require years of planning and construction
Source: Detroit News
TECH EMPLOYMENT SNAPSHOT
2025 Tech Layoffs: 209,838 (Down 12% from 2024)
Multiple tracking sources confirm tech layoffs decreased in 2025 compared to 2024’s brutal year, but remain historically elevated:
Layoffs.fyi: 122,549 tech employees at 257 companies (down from 152,922 at 551 companies in 2024)
TrueUp.io: 209,838 people impacted at 716 companies (583/day vs. 655/day in 2024)
Crunchbase: 126,352 U.S. tech workers in mass layoffs (down ~20% from 2024)
Major 2025 cuts:
- Amazon: 14,000 announced (plus additional cuts not part of that total)
- Intel: Reducing to 75,000 employees by end of 2025 (15-20% of foundry division)
- Microsoft: 9,000 employees (~4% of workforce)
- Verizon: 13,000+ (largest-ever campaign, announced before Thanksgiving)
- Salesforce: ~5,000 roles (including 4,000 support positions)
- Wayfair: 340 in Technology division ($33-38M restructuring costs)
- HPE: 2,500 employees (5% of workforce)
December 2025: 300 employees laid off across tech sector
The “correction” narrative: IBM CEO Arvind Krishna told The Verge layoffs represent “natural correction” from pandemic overhiring rather than AI displacement: “Some of the displacement is just people saying, ‘I don’t need so many people because I went up 30, 40, 50, 100% from 2020 to 2023.'”
The AI contradiction: Amazon CEO Andy Jassy says workforce reduction “was not really financially driven, and it’s not even really AI driven—not right now, at least. It’s culture.” Yet companies simultaneously announce billions in AI infrastructure investment while cutting human workers.
The broader economy: Challenger, Gray & Christmas reported through November: 1,170,821 total U.S. layoff plans—54% increase from same period in 2024. November unemployment hit 4.6% (four-year high), with 7.8M unemployed vs. 7.1M in November 2024.
Hiring reality: Hiring rate hovering near levels seen in 2020 and 2013, making it difficult for displaced workers to find new positions.
Sources: Layoffs.fyi, TrueUp.io, Crunchbase, TechCrunch, Yahoo Finance, Challenger Gray & Christmas, BLS
GREAT LAKES WATER LEVELS: CONTINUED DECLINE
All Lakes Except Erie Below Long-Term Averages
International Joint Commission’s winter update (February 24, 2025 data) and Army Corps of Engineers weekly update (December 12, 2025) confirm water level concerns:
December 2025 levels vs. long-term averages:
- All lakes 2-5 inches below last month
- Lakes Superior, Michigan-Huron, St. Clair, Erie, Ontario: 4-13 inches below long-term December averages
- All lakes remain 14-28 inches above record lows
Compared to last year (December 2024):
- Lake Michigan-Huron: 8 inches below
- Lake St. Clair: 5 inches below
- Lake Erie: 7 inches below
- Lake Superior: Near last year’s level
- Lake Ontario: 1 inch higher
IJC February 2025 analysis reveals decade lows:
- Lake Superior: Lowest since 2013
- Lake Michigan-Huron: Lowest since 2014
- Lake Ontario: Lowest since 2003
- Lake Erie: Lowest since 2014 but ~0 inches above long-term average
What caused accelerated decline: Drought conditions in certain Great Lakes regions accelerated the natural seasonal water level decline throughout fall 2024.
The data center timing problem: Michigan is approving multiple gigawatt-scale data centers requiring millions of gallons of daily water consumption precisely when Great Lakes hit decade lows. A medium data center consumes 110M gallons annually (equivalent to 1,000 households). Hyperscale facilities can use 5M gallons daily.
Community negotiation leverage: Low water levels strengthen community arguments for:
- Water consumption limits in Community Benefit Agreements
- Mandatory alternative cooling systems (closed-loop vs. evaporative)
- Financial compensation for water usage
- Emergency curtailment provisions during drought conditions
Sources: International Joint Commission, U.S. Army Corps of Engineers, NOAA GLERL, Planet Detroit
MICHIGAN INFRASTRUCTURE TRACKER
16+ Active Data Center Projects Across State
A comprehensive analysis by CompleteAITraining.com (December 2025) identifies 16+ data center proposals across Michigan, revealing the scale of development happening simultaneously:
Southeast Michigan Cluster (Washtenaw/Wayne Counties):
- Saline Township (Oracle/OpenAI): 1.4GW, $7B, site prep underway
- Van Buren Township (Panattoni): 1GW, decision Jan 14
- Ypsilanti Township (U-M/Los Alamos): 1.2GW, $100M grant controversy
- Augusta Township (Thor Equities): 522 acres, ballot vote expected 2026
- York Township (Sansone Group): 412 acres, residents seeking moratorium
Oakland County: 6. Lyon Township (Verrus/Alphabet): 1.8M sq ft, conditionally approved Sept 2025 7. Southfield (Microsoft/OpenAI): 100MW, site plan approved Dec 15
Kent County: 8. Gaines Township (Microsoft): Rezoning requested, former Steelcase property 9. Dorr Township (Microsoft): 272 acres acquired 2024 10. Lowell Township (Franklin Partners): 235 acres, public hearing Jan 12
Other Regions: 11. Livingston County – Howell Township (Meta): Withdrawn after moratorium 12. Kalamazoo – Pavilion Township (Franklin Partners): On hold after backlash 13. Ingham – Lansing (Deep Green): $120M, 24MW downtown project 14. Monroe – Frenchtown Township (Cloverleaf): 200 acres, early outreach 15. Monroe – Dundee Township (Cloverleaf): 350 acres, moratorium enacted 16. Kalkaska County (Rocklocker LLC): Dropped after public pushback
Total known capacity requests: Estimated 5+ gigawatts across active proposals
The cumulative impact reality:
- DTE total capacity: ~18.6 GW
- Known data center requests: 2.4+ GW (Saline 1.4GW + Van Buren 1GW alone)
- That’s 13% capacity increase from just two projects
- Doesn’t account for Lyon, Southfield, Gaines, Lowell, Ypsilanti, or others
Texas comparison: ERCOT reported 226GW in data center interconnection requests for 2030. Texas has 103GW total capacity. Requested capacity exceeds entire grid by 2x.
Michigan’s ratio (2.4GW requests on 18.6GW capacity) is more sustainable but still represents massive grid impact—especially when combined with:
- Failed Lake Michigan Generating Station rebuild ($383M verdict)
- Great Lakes water levels at decade lows
- Unproven ability to add generation capacity at required pace
Updated Tax Subsidy Analysis:
Saline Township (Oracle/OpenAI):
- Investment: $7 billion
- Tax subsidy: ~$420M (6% equipment exemption through 2050)
- Permanent jobs: 450 on-site + 1,500 county-wide (Oracle claims)
- Cost per job: $215,000-$933,000 depending on actual jobs created
- Reality: Blue Owl Capital backed out of financing same day as MPSC approval
Van Buren Township (Panattoni):
- Investment: Unknown (comparable projects $4-7B)
- Tax subsidy: Would qualify for 6% exemption + seeking PA 198 (50% additional)
- Permanent jobs: 30-50 estimated
- Projected cost per job: $6-10 million
- Decision: January 14, 2026
Lyon Township (Verrus/Alphabet):
- Investment: Estimated $4 billion
- Tax subsidy: Would qualify for 6% exemption
- Permanent jobs: 50-100 estimated (one per building = 6 if literal)
- Projected cost per job: $40-80 million if 50-100 jobs, $670M if only 6
- Status: Conditionally approved September 2025, sound study due 2027
Southfield (Microsoft/OpenAI):
- Power: 100MW
- Tax subsidy: Would qualify for 6% exemption
- Permanent jobs: 30-50 estimated
- Projected cost per job: $3-5 million
- Status: Site plan approved December 15
Compare to proven alternatives:
- Community college: $50K per student, transferable skills, 4-year return
- Housing First programs: $15-25K per person, proven outcomes, immediate impact
- Small business grants: $50-500K creates 3-10 jobs each, permanent local ownership
- Infrastructure repair: Jobs + community asset + ongoing benefit
The math on Saline alone: $420M in tax breaks ÷ 1,950 total promised jobs = $215,000 per job If only 450 on-site jobs materialize: $933,000 per job That same $420M could fund:
- 8,400 community college students
- 16,800-28,000 Housing First placements
- 840-8,400 small businesses creating 2,520-84,000 jobs
Sources: CompleteAITraining.com, township records, Planet Detroit, Crain’s Detroit Business, MLive
WHAT TO WATCH
Next 30 Days:
- Van Buren Township decision (January 14, 2026): Planning Commission vote on Panattoni’s 1GW proposal. Community opposition strong but zoning allows “by right.” Watch for:
- Actual vote outcome
- Conditions attached (if approved)
- Whether township board exercises final authority
- Community organizing response
- Lyon Township informational meeting (late January 2026): Four months after September approval, township finally holding public meeting. Watch for:
- Sound study completion (required but not yet submitted)
- Energy requirements disclosure from DTE
- Detailed job numbers beyond vague “50-100” estimate
- Actual construction timeline for six buildings
- Oracle financial stability: Blue Owl Capital’s exit raises questions about project financing. Watch for:
- Related Digital’s unnamed “new equity partner” identity
- Oracle Q3 earnings (late January/early February typically)
- Credit rating agency actions by Moody’s and S&P
- Construction permit applications (or lack thereof) in Saline
- Saline legal challenges: Resident intervention alleging Open Meetings Act violations. Watch for:
- Court rulings on legal standing
- Whether settlement can be challenged after approval
- Impact on construction permits from EGLE
- AG Nessel’s Consumers Energy challenge: Attorney General pushing back on data center ratepayer protection rules. Watch for:
- MPSC response to Nessel’s concerns
- Whether DTE contracts face similar scrutiny
- Legislative action to strengthen ratepayer protections
Longer-Term (Q1 2026):
- Grid capacity reality check: Can DTE and Consumers Energy actually deliver 2.4+ GW of new capacity without:
- Rate increases for existing customers
- Grid reliability problems
- Years of infrastructure buildout delays
- Water permits during drought: Will EGLE approve millions of gallons daily consumption when Great Lakes are at decade lows?
- Employment verification: When construction starts, do promised job numbers materialize or follow historical pattern of inflated projections?
- Community organizing effectiveness: Can townships develop better negotiation strategies after seeing:
- Saline lawsuit settlement under pressure
- Lyon approval without public hearings
- Van Buren “likely out of their hands” admission
- Federal policy shifts: Trump administration’s data center fast-tracking agenda vs. state/local authority. Will federal preemption override Michigan township control?
DATA YOU CAN USE
Michigan Data Center Comparison Table:
| Project | Power | Investment | Jobs (claimed) | Cost/Job | Status |
|---|---|---|---|---|---|
| Saline (Oracle/OpenAI) | 1.4 GW | $7B | 450-1,950 | $215K-$933K | Blue Owl backed out, site prep underway |
| Van Buren (Panattoni) | 1 GW | Unknown | 30-50 | $6-10M est. | Decision Jan 14 |
| Lyon (Verrus/Alphabet) | Unknown | $4B est. | 50-100 | $40-80M | Approved Sept, residents just learned |
| Southfield (Microsoft) | 100 MW | Unknown | 30-50 | $3-5M est. | Approved Dec 15 |
| Ypsilanti (U-M/Los Alamos) | 1.2 GW | $1.2B | Unknown | $6M per job (if 200) | Grant controversy |
Water Consumption by Data Center Size:
- Small (100K sq ft): 18,000 gal/day = 6.57M gal/year
- Medium: 110M gal/year (1,000 households equivalent)
- Hyperscale: 5M gal/day = 1.8B gal/year (50,000 people equivalent)
- Saline claim: Closed-loop cooling = “comparable to office building”
- Lyon claim: 15,000 gal/day (vs. typical 5.25M gal/day for 1.8M sq ft)
Great Lakes Water Levels (December 2025):
- All lakes: 4-13 inches below long-term averages
- Lake Superior: Lowest since 2013
- Lake Michigan-Huron: Lowest since 2014
- Lake Ontario: Lowest since 2003
Tech Layoffs (2025 vs. 2024):
- 2025: 209,838 workers (down 12% from 2024)
- 2024: 239,101 workers
- Daily average 2025: 583 layoffs/day
- Daily average 2024: 655 layoffs/day
COMMUNITY NEGOTIATION TOOLKIT
Questions for Data Center Developers (Updated):
Financial Stability:
- Who is the equity partner funding this project?
- What percentage of construction costs is equity vs. debt financing?
- What happens if the equity partner withdraws (like Blue Owl from Saline)?
- Will you provide financial statements proving ability to complete construction?
- What recourse does the community have if construction stalls due to financing failure?
Water (Critical Given Great Lakes Decade Lows):
- Total daily water consumption (gallons)?
- Cooling system type (evaporative vs. closed-loop)?
- Source of water (municipal, well, lake withdrawal)?
- Backup plan if water permits denied due to drought conditions?
- Legally binding curtailment requirements during low water periods?
- Will you post bond for water infrastructure damage?
Power (Critical Given Grid Instability):
- Peak and average megawatt consumption?
- Grid upgrade costs—who pays if DTE exceeds budget (see $383M Lake Michigan verdict)?
- Written guarantee of no residential rate increases?
- What happens if DTE cannot deliver promised capacity?
- Backup generation capacity and diesel fuel storage amounts?
Employment (Given Inflated Historical Promises):
- Distinction between construction jobs (temporary) and permanent jobs?
- Permanent jobs: specific numbers, salary ranges, required skills?
- Local hiring percentage with financial penalties for non-compliance?
- Independent verification of job creation (not developer self-reporting)?
- Clawback provisions if promised jobs don’t materialize?
Community Benefit:
- Tax revenue projections—realistic vs. optimistic scenarios?
- Who pays for road damage from construction traffic?
- Impact fees for police, fire, schools?
- Transparent quarterly reporting requirements?
- Community ownership stake or profit-sharing?
Legal Protections:
- What happens if project ownership changes (Oracle bought by Microsoft, etc.)?
- Do community agreements survive bankruptcy or restructuring?
- Are NDAs required? (Red flag if yes—see Van Buren)
- Independent environmental impact assessment (not developer-funded)?
- Long-term decommissioning plan with posted bond?
Leverage Points in Current Environment:
- Blue Owl withdrawal: Demand proof of committed equity financing before approval
- Great Lakes decade lows: Require drought curtailment provisions in water permits
- Grid fragility: Require developer to fund 100% of grid upgrades (not DTE customers)
- Oracle debt crisis: Demand higher collateral given BBB credit rating trajectory
- Lyon/Saline pattern: Refuse “permitted by right” argument—moratoriums work (see Howell, Dundee)
The Moratorium Strategy:
- Howell Township: 6-month moratorium, Meta withdrew proposal
- Dundee Township: Temporary moratorium enacted
- Pavilion Township: Developer withdrew after community backlash
- Lesson: Moratoriums create negotiating time and sometimes stop projects entirely
The Legal Settlement Strategy (Saline Lesson):
- If sued by developer, evaluate actual legal exposure vs. settlement terms
- $25-50M in potential damages vs. $7B project with unstable financing
- Could township have negotiated better terms by calling developer’s bluff?
- Insurance coverage ($500K) vs. actual legal costs vs. settlement concessions
INTELLIGENCE ANALYSIS
The Financing Instability Pattern
This week revealed a critical gap between data center promises and financial reality:
Blue Owl Capital’s withdrawal the same day as MPSC approval wasn’t just bad timing—it exposed that Michigan regulators approved contracts for a project with collapsing equity financing.
Oracle’s explanation that Related Digital found “the best equity partner from a competitive group of options” raises questions:
- If Blue Owl was the “best option” initially, why did they leave?
- Who is the unnamed replacement and why won’t Related Digital identify them?
- Does the replacement have better financial stability than Blue Owl?
- Or is this a desperation move to salvage a project Oracle can’t actually fund?
The pattern across Oracle’s data center portfolio:
- Negative $10B free cash flow (Q2 2025)
- $248B in lease commitments for unbuilt facilities
- Bloomberg reporting 2027→2028 delays due to “labor and material shortages”
- Blue Owl exit from Michigan project
- Credit rating agencies moving toward junk status
- Stock down 15% from recent highs
What this means for Michigan communities:
The infrastructure WILL get built (AI demand is real, federal backing is real). But WHO builds it and WHEN matters enormously for communities that already committed:
- Tax breaks through 2050 (can’t be clawed back if Oracle sold/restructured)
- DTE grid upgrades (ratepayers pay if Oracle stalls construction)
- Road damage (townships repair even if construction stops halfway)
The “too big to fail” paradox:
If Oracle enters financial distress in 2026-2027:
- Scenario A: Microsoft/Google/Amazon acquire assets, complete construction, community gets facility (but maybe not promised jobs/terms)
- Scenario B: Oracle restructures, delays construction 2-3 years, community bleeds resources waiting
- Scenario C: Project stalls indefinitely, community lost tax revenue + infrastructure investment
All three scenarios harm communities that approved without financial safeguards.
The “Permitted By Right” Trap
Lyon Township reveals the playbook:
- Developer finds land zoned industrial decades ago (by people “40 or 50 years ago” per Van Buren supervisor)
- Data centers weren’t contemplated when zoning created but happen to fit “industrial” definition
- Planning commission (appointed) approves without public hearings
- Community discovers via Facebook after approval
- Township says “hands are tied” by existing zoning
- Informational meeting held months later as performative gesture
The trap is deliberate: Developers know industrial zoning didn’t envision gigawatt-scale data centers consuming 5 million gallons of water daily. But they exploit “permitted use” language to bypass elected officials and public input.
The solution exists: Moratoriums. Howell Township enacted 6-month moratorium, Meta withdrew. Dundee Township enacted moratorium. Pavilion Township developer withdrew after backlash.
Why more townships don’t use moratoriums:
- Developer lawsuits (like Saline) intimidate townships with limited legal budgets
- Economic development pressure from state government
- DTE/Consumers Energy lobby influence
- Media narrative that opposing data centers = opposing economic growth
Counter-argument: $53 million per job (Lyon Township if only 75 permanent positions) is not economic development. It’s corporate welfare disguised as job creation.
The Great Lakes Water Crisis Timing
All Great Lakes except Erie are below long-term averages. Lake Superior at lowest since 2013. Lake Michigan-Huron lowest since 2014. Lake Ontario lowest since 2003.
And Michigan is approving facilities requiring:
- 5 million gallons daily (hyperscale)
- 110 million gallons annually (medium)
- Multiplied across 16+ projects statewide
The IJC February 2025 update described drought conditions accelerating water level decline. That was before Michigan approved Saline, Southfield, and potentially Van Buren/Lyon.
The community leverage point: Developers claim “closed-loop cooling” and “comparable to office building” water usage. Demand:
- Third-party engineering verification
- Real-time water consumption monitoring
- Curtailment requirements if Great Lakes levels fall further
- Financial penalties for exceeding permitted amounts
- Posted bonds for emergency drought response
The Great Lakes Compact governs water withdrawals. Does cumulative data center demand trigger interstate/international review? Nobody seems to be asking this question before approvals.
The Tech Layoffs Disconnect
Tech companies laid off 209,838 workers in 2025 while simultaneously:
- Announcing $121B in data center bonds
- Promising thousands of construction jobs
- Claiming AI creates employment opportunities
- Building infrastructure that automates human work
IBM CEO Arvind Krishna’s “natural correction” explanation doesn’t account for:
- Why “corrections” happen during record profit years
- Why companies hiring aggressively in India while cutting U.S. workers
- Why infrastructure spending accelerates during workforce reductions
The truth communities need to hear: Data center construction jobs are temporary (18-24 months). Permanent operational jobs are minimal (30-50 per facility). And those operational jobs are increasingly automated by the AI the data centers support.
The Under the Radar intelligence:
- Microsoft India deployed 200,000 Copilot licenses while cutting U.S. workers
- Salesforce cut 4,000 support roles while promoting Agentforce agents
- Amazon cut 14,000 corporate employees while building massive AWS infrastructure
Data centers automate jobs. They don’t create them long-term.
NEXT WEEK
PivotIntel Weekly publishes Sundays at 8am. Under the Radar (career intelligence) publishes Fridays at 8am.
Focus areas for Issue #7:
- Van Buren Township decision aftermath (if voted Jan 14)
- Lyon Township informational meeting details
- Oracle Q3 earnings preview (late January)
- Great Lakes water permit applications
- Additional Michigan projects entering public view
RESOURCES
Intelligence Tracking:
- PivotIntel App: pivotintel.org/app (real-time project monitoring)
- Great Lakes Dashboard: glerl.noaa.gov/data/wlevels/dashboard
- Army Corps Water Levels: lrd.usace.army.mil/Water-Information
- IJC Water Level Updates: ijc.org/en/great-lakes-water-levels-boards
Township Meetings:
- Van Buren: January 14, 2026, 5:30pm, Township Hall
- Lyon: Late January 2026 (date TBA)
- Check local government websites for other Michigan townships
Community Organizing:
- Study moratorium successes (Howell, Dundee, Pavilion)
- Document developer promises vs. reality
- Demand financial stability proof before approval
- Use Great Lakes drought as negotiation leverage
- Share information across townships facing similar proposals
Analysis & Background:
- Under the Radar: theopenrecord.org/under-the-radar (career intelligence)
- Beyond Hyperscale Alternatives: theopenrecord.org/2025/12/15/beyond-hyperscale
- AI Deployment vs. Bubble: theopenrecord.org (multi-part series)
METHODOLOGY
Intelligence gathered from: Official government sources (IJC, NOAA, Army Corps of Engineers, MPSC), township meeting records and documents, utility filings, financial reporting (Bloomberg, Financial Times, Wall Street Journal), tech industry analysis (TechCrunch, Layoffs.fyi, Crunchbase), regional journalism (MLive, Planet Detroit, Detroit News, Bridge Michigan, WXYZ, FOX 2 Detroit), and developer disclosures.
All major claims backed by primary sources. Estimates clearly identified. Confidence scoring available in PivotIntel app for individual project data.
Financial analysis based on publicly available corporate filings, credit rating agency reports, and institutional investor research. Water level data from IJC, NOAA GLERL, and U.S. Army Corps of Engineers official monitoring networks.
Questions? Intelligence tips? Community organizing stories? Email: angela@theopenrecord.org
About PivotIntel: Infrastructure intelligence for communities navigating AI development. Focus: data centers, power grid, water resources, employment reality, financial stability, community leverage.
Published by The Open Record L3C | theopenrecord.org
All sources archived via Wayback Machine for permanent verification.