OU AI Institute and Data Center Project
OU AI Institute and Data Center Project
OU AI Institute and Data Center Project
Oakland University is exploring the creation of an AI Institute and Data Center proposed for the P-35 parking lot, near an existing DTE substation. The center would be built by a private developer in partnership with OU, with shared use by the University and external tenants. This project has been approved for exploration and due-diligence only at this time. The project must be formally approved by OU’s Board of Trustees prior to any formal development agreement or construction commencing.
The OU data center project introduces a new catalyst for next-generation research and innovation on campus, expanding the University’s ability to experiment, analyze, and collaborate in ways that open doors for students, elevate research, and connect OU to emerging opportunities across the digital landscape.
The proposed project supports several strategic goals:
- Technology Expansion: Supports OU’s vision to build a state-of-the art AI Institute and deepen industry partnerships that advance AI research across automotive, healthcare, education and adjacent sectors.
- Research & Internships: Provides access to modern data-center infrastructure that powers faculty and student research, creates student internships and opens career pathways in data center operations, compliance and cybersecurity, advancing OU’s goal of achieving R1 research accreditation status.
- Sustainability: Supports OU’s sustainability and decarbonization goals by exploring strategies such as closed-loop cooling, waste heat recovery and alternative energy sources as part of a future-ready data center design.
- Revenue Generation: Creates potential financial benefits through the developer partnership that can help support University operations and initiatives.
Strategic Vision 2030Campus Plan 2035
Information on this page reflects preliminary planning and may be refined as the project advances through Board of Trustees review, campus engagement, and the formal design process.
| Phase | Details |
|---|---|
| June 2025 | Project presented at Board of Trustees Formal (Public) Session; pre-development agreement approved |
| June-Sept. 2025 | RFP issued; Fairmount Properties selected as developer |
| Oct. 2025-Spring 2026 | Planning/due-diligence phase: utilities and environmental assessments, define OU’s programmatic needs, identify potential industry partnerships, conceptual planning, establish timeline and early schedule, campus engagement. Develop business plan and seek Board of Trustees approval at Formal (Public) Session in April. |
| Summer 2026-Summer 2027 | Pending approval - Pre-development: Complete programming for OU spaces and finalize design; construction begins.> |
| Fall 2027-Winter 2028 | Pending approval - Data center becomes operational |
The University is committed to providing updates and receiving feedback from the campus community throughout this process. Additionally, project updates will be shared through OU’s shared governance process, including:
- President’s Cabinet
- University Senate
- Campus Development & Environment Committee of the Senate (CDEC)
- Student Congress
- Town Halls
Below are common questions received thus far from across the University with responses from the project team based on what is known prior to the due-diligence work being undertaken. As we are currently in the pre-development phase, answers to some questions are not yet available. This page will be updated on a regular basis as information becomes known.
- What is the size of the data center and will there be sufficient electrical capacity for future University needs?
The physical footprint of the building is not anticipated to extend beyond the boundaries of the P-35 lot. The data center will have an approximate capacity of 26 megawatts, pending allocation by DTE. This is separate from the 10 megawatts of capacity allocated to OU. OU currently utilizes 5 megawatts of the 10 allocated, leaving 5 megawatts available for future needs.
It is important to note that the 26 megawatts is smaller than existing data centers such as the Switch Data Center in Grand Rapids, which is 110 megawatts, and far smaller than the “hyperscale” data center that serve tech companies like Google, Amazon and Open AI, which contain multiple gigawatts of capacity.
- Will additional electrical grid infrastructure be required, and what is the potential community impact?
It is not yet known whether or not additional electrical grid infrastructure will be required – this will be determined during pre-development in collaboration with DTE. Data centers are anticipated to become more energy-efficient over time. Changes in local industrial activity, such as the auto sector, may also influence overall demand. - Will local consumer electricity rates increase due to the data center’s energy consumption?
The Michigan Enterprise Data Center Sales and Use Tax Exemption (PA 207, 2024) which the developer will be using, is intended to prevent consumer rate increases related to data center operations. - How much water will be used for cooling?
The facility will focus on an efficient cooling approach. Modern data centers often rely on systems that recirculate water within a contained loop. The selected cooling solution will prioritize efficiency and reliability. - Will a retention pond be constructed, and what water body is it connected to?
The pre-development phase will determine whether existing retention ponds are sufficient or new ones will be needed. - What is the expected noise impact from backup generators?
Noise-studies will be conducted during pre-development. Design will include mitigation measures to ensure compliance with allowable noise levels, verified at key campus locations. - Is fuel storage for backup generators being considered?
Backup power options will be evaluated with a focus on reliability and reducing impact, including alternatives to traditional systems. - Why is LEED certification preferred rather than required?
PA 207, 2024 allows certification under various green building standards including: LEED, BREEAM, Energy Star® and others. The facility will incorporate sustainability best practices regardless of the chosen certification. - How does the project align with the University’s sustainability and carbon reduction goals?
OU aims to develop a sustainability-focused university data center. Waste heat is intended to be captured to support the central heating plant, reducing reliance on natural gas and lowering the carbon footprint. OU will evaluate options such as high-efficiency systems and advanced energy management to complement and reinforce OU’s long-term campus-wide goals. - How will the building fit with campus aesthetics?
The building will be designed in close coordination with OU’s campus planning and design guidelines to ensure it fits appropriately within the existing environment. Design elements will be carefully considered so the facility aligns with the character of the campus, while also drawing on sustainability best practices. - How will access to the Native American Heritage Site and Biological Preserve nature trails be maintained?
Maintaining access to the Native American Heritage Site and the nature trails will be key considerations. OU will work with partners to evaluate and plan options that provide safe, convenient connections to these areas. - Who will the tenants be, sharing the facility with the University?
Potential tenants will be evaluated with a focus on alignment with OU’s academic mission, research activity, and student internship opportunities. Ideas will be solicited from the academic leadership, faculty and student affairs. - What taxes will be paid by the developer and/or tenants?
All parties will comply with applicable municipal, state and federal tax laws. - How many jobs will the data center create?
At least 30 full time jobs will be created, with compensation at 150% of the local median wage as required by PA 207, 2024. - How does the data center support the University’s mission?
The facility is intended to broaden opportunities for academic programming, research and student engagement. It will introduce modern digital infrastructure that can strengthen teaching and research capabilities and allow OU to repurpose space in Dodge Hall for additional research laboratories. - How many student internships will be created and will they be dedicated to OU students?
OU will seek tenants willing to partner with the University and provide student internships specifically to OU students. The number of internships will be determined once the tenants are secured. - What is the decommissioning plan?
Over the life of the data center, the facility is expected to evolve as needs and technologies change. At the end of lease term, options such as renewal, modifications and repurposing would be evaluated. Specific approaches would be defined closer to that time, based on future conditions, needs and best practices. - How will revenue from the data center be used?
Revenue from the data center will support University operations and initiatives.
For questions or feedback, please contact [email protected].
