AI Institute and Data Center
AI Institute and Data Center
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 selected industry partners. 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 lease agreement or construction commencing.
The AI Institute and 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; feasibility study approved |
| June-Sept. 2025 | RFP issued; Fairmount Properties selected as developer |
| Oct. 2025-May 2026 | Feasibility phase: evaluate utilities, assess initial OU programmatic needs, identify potential industry partnerships, establish early schedule and engage with campus stakeholders. Initiate business planning. |
| June 2026 |
Project will advance to the Board of Trustees for approval at the June, 2026 Formal (Public) Session pending the outcome of the feasibility phase. |
| Fall 2026-Fall 2027 |
Pre-development phase (if approved): environmental assessments, finalize programming for OU spaces, facility and site design |
| Fall 2027-Winter 2028 | Development phase (if approved): Construction begins. |
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 (OUSC)
- Town Halls
AI Institute and Data Center Presentations to Date:
September, 2025
- 9/18: CDEC
- 9/20: President’s Cabinet
October, 2025
- 10/6: Provost’s Council
- 10/16: Board of Trustees Work Session
November, 2025
- 11/11: OUSC
- 11/20: Campus Development and Environment Committee (Memo)
- 11/18: Senate Steering Committee
- 11/20: University Senate
January, 2026
- 1/17: Board of Trustees (email)
- 1/27: Campus email update
- 1/29: City of Auburn Hills
February, 2026
- 2/12: Board of Trustees Work Session
- 2/13: Campus Development and Environment Committee (Memo)
- 2/13: Press Release
- 2/17: President’s Leadership Council
- 2/24: City of Auburn Hills
March, 2026
Data Center Update Presentation
Meetings:
- 3/10: Senate Steering Committee
- 3/11: Senate Budget Review Committee
- 3/16: Provost’s Council
- 3/16: OU Post and WXOU
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3/16: OU Student Congress
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3/19: University Senate
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3/20: CDEC
Below are common questions received thus far from across the University with responses from the project team based on what is known prior to feasibility and due-diligence work being undertaken. As we are currently in the initial project 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 AI Institute and 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 paved 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 industry partners be, sharing the facility with the University?
Potential industry partners 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 partners?
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 AI Institute and Data Center support the University’s mission?
The project 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 industry partners willing to provide student internships specifically to OU students. The number of internships will be determined once the partnerships 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 AI Institute and Data Center be used?
Revenue will be used to support University operations and initiatives.
For questions or feedback, please contact [email protected].
Colocation Data Center: A small to large shared facility with one or more businesses renting server space, power and/or cooling. A cost-effective alternative to building separate facilities.
DC: Data Center
Due Diligence: This is the "Should we do this?" phase. It’s a deep-dive assessment of the project entailing evaluation of site conditions and environmental impact studies.
Edge Data Center: Smaller facilities located in close proximity to the people and devices they serve to reduce delays by processing near the source. They are often deployed in micro or modular formats.
Enterprise Data Center: Small to medium sized data centers owned and operated by a single organization for its own internal use. Typically located on-site or at a dedicated off-site facility.
Feasibility Study: This is the "Can we do this?" phase to determine if it is possible. It’s a high-level look at whether a specific plot of land or building is suitable and covers:
- Availability of power from the local utility
- Fiber optic connectivity and
- Financial feasibility.
Financial Due Diligence: Verifying tax incentives, power costs, and long-term ROI.
Gigawatt (GW) (1,000 Megawatts): Is a unit of power equal to one billion watts, 1,000 megawatts, or 1 million kilowatts. It is used to measure the capacity of large power plants, regional grids, and massive energy consumption.
Hyperscale Data Center: Massive facilities owned by large technology corporations like Google, Amazon, or Microsoft. They are built to power global cloud, AI and big data with thousands of servers.
Kilowatt (kW) (1,000 watts): Is a unit of power equal to one thousand watts and is the base unit for measuring the power draw of a single server rack.
Megawatt (MW) (1,000 kilowatts): Is a unit of power equal to one million watts or 1,000 kilowatts, typically used to measure electricity generation capacity and large-scale consumption.
Technical Due Diligence: Checking soil stability, flood plains, and structural integrity.
Watt: The basic unit of power in the International System of Units (SI), representing the rate at which energy is used or produced. One watt is equal to one joule per second and is commonly used to measure the electrical power of devices such as light bulbs and appliances.
