Market guide / Detroit

Detroit colocation: the network is in Southfield, beyond the gigawatt headlines.

The Michigan Public Service Commission conditionally approved DTE Energy's contracts to supply 1.4 gigawatts to the OpenAI and Oracle campus in Saline Township, which would be the largest facility in the state. Van Buren Township is weighing a one gigawatt proposal that would use as much as 3.6 million gallons of water a day. Meanwhile almost every network in Southeast Michigan sits in a handful of buildings on Northwestern Highway in Southfield.

Detroit and Southeast Michigan colocation market

How much does colocation cost in Detroit?

Recent quotes we received for Northeast ran $200 to $240 per kW per month for up to 500 kW, falling to $165 to $205 above 1 MW.

Detroit colocation pricing, USD per kW per month. Our quotes are for Northeast, updated October 26, 2026.
DeploymentMonthly rateSource
Up to 500 kW$200 to $240/kW-moOur quotes
Over 500 kW to 1 MW$180 to $220/kW-moOur quotes
Over 1 MW$165 to $205/kW-moOur quotes

The Northeast Region ranges cover Michigan. They are regional planning figures, not a Detroit-specific asking-rent benchmark; price the exact building and network connections before comparing offers.

Smaller deployments cost more per kW. These are recent quotes we received, not a statement that space is available. Cross-connects, remote hands and one-time setup are extra. Operators often give 2–3 free months on a new term. See every region's quote ranges.

Comparing cabinets and cages. For a cabinet or private cage, ask for the total monthly charge and usable power together. Include any cross-connects or metro circuits needed to reach your carriers, and compare those costs at the specific building. See private cage colocation and how power is billed.

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What providers in Detroit post as a list price

Most colocation in Detroit is quoted, not posted. The provider below is the exception: it publishes a monthly price on its own website, and every row links to that page. It is a smaller regional operator. The large operators here do not publish prices at all, so read these as a floor and a sanity check, not as what an enterprise contract lands at.

Posted by the provider1 offerChecked 22 September 2026
MonthlyProviderOfferPower includedPer usable kWBandwidth
$1,249InterconnecxFull cabinet, 42U, A+B power. Detroit and Kansas City. Contract required20A at 120V, A+B (1.92 kW usable)$651Unmetered 1 Gbps

Each price was read on the provider's own page on the date shown. Usable kW is 80% of the circuit rating, with a redundant A+B pair counted once, and is only worked out where the provider states both amps and volts. "From" is the provider's own word for a starting price. Providers whose networks carry spam or abuse flags are left out whatever their price. A posted price is not availability, and bundles differ in bandwidth and power, so compare the whole row rather than the first column. How power is billed is covered in how colocation power is billed.

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Who is actually plugged in across Detroit and Southeast Michigan

A building existing and a building being connected are different facts, and only one of them decides whether your traffic can get where it needs to go cheaply. These figures come from PeeringDB, which the network operators themselves maintain, so every row below links to the building's own public entry.

Public record16 buildings listed130 network presences
MeasureFigureWhat it means
Buildings listed16Registered in PeeringDB across Detroit and Southeast Michigan, by 11 operators
Buildings with a network present142 carry no network presence, which usually means single tenant or simply unregistered
Network presences130Counted per building, so a carrier in three buildings counts three times
Internet exchange presences6Where you can reach many networks through one port instead of many cross-connects
Carrier presences5The physical transport choice you can buy without leaving the building
In the densest building48%123.NET - DC1 - 24700 Northwestern Hwy. holds 62 of the market's network presences

The most connected buildings here

NetworksBuildingOperatorExchangesCarriers
62123.NET - DC1 - 24700 Northwestern Hwy.123.Net, LLC.32
14EdgeConneX Detroit (EDCDET01)EdgeConneX Inc.11
9123.NET - DC3 - 24245 Northwestern Hwy.123.Net, LLC.00
9365 Data Centers Detroit (DT1)365 Data Centers11
8123.NET - DC2 - 24275 Northwestern Hwy.123.Net, LLC.10
7ManagedWay TYM1ManagedWay Company00
5Liberty Center OneLiberty Center One01
4ManagedWay TYM2ManagedWay Company00

From PeeringDB, which is maintained by the network operators present in these buildings rather than by the landlords, which is what makes it worth more than a directory. Two limits. Entries are voluntary, so a building showing no networks may be single tenant or may simply never have registered. And a network being present says nothing about whether the building has space, power or a price for you: that is still a call.

Market profile

Why Detroit is a market at all

Detroit is an automotive and manufacturing market, and its colocation demand looks like that: engineering workloads, plant systems, supplier integration, and the enterprise IT of companies whose headquarters are here. It is a real market with real tenants, and it has been served for two decades by a small group of local and regional operators rather than by the national wholesale names.

The concentration is extreme even by the standards of a secondary market. Nearly half of Southeast Michigan's network presences sit in one building on Northwestern Highway in Southfield, and one operator holds three of the five most connected addresses in the region. Southfield, not Detroit, is the physical center of this market, and a search that starts downtown starts in the wrong place.

What has changed is everything around it. Michigan passed data center tax incentives at the end of 2024 and the hyperscale money arrived immediately. None of it is colocation, and all of it competes with colocation for the same power and the same political goodwill.

How to read the numbers below

Every megawatt figure on this page is one of two things: power a utility has been approved to supply, or capacity a developer has proposed to a township. Those are different, and neither one is space you can lease. Nothing published anywhere discloses contractible capacity in this metro. A number on a brochure is a marketing position, not an inventory.

What has been announced in Detroit and Southeast Michigan

Announcements are not filings. Nobody has to build what they announce, the figure is the one the developer chose to publish, and the date moves. They are here because megawatts are what a requirement is measured in, and because the size of what is coming changes who will take your call. Every figure below links to a published report that states it, and was checked against at least one other independent report before it was written down.

Announced, not filed3 projectsLargest: 1.4 GW
CapacityOperatorProjectWhat was announced
1.4 GWOpenAI, Oracle and Related DigitalStargate, Saline TownshipA 250 acre site in Washtenaw County put at $16 billion, whose 1.4 gigawatts the Michigan Public Service Commission conditionally approved DTE Energy to supply. It would be the largest facility in the state and is not colocation. Utility supply contract approved
1 GWNot disclosedVan Buren Township proposalA one gigawatt proposal the township is targeting, reported to use as much as 3.6 million gallons of water a day. Proposed, under municipal review
26 MWNot disclosedAllen Park proposalThe only figure on this list at a scale a colocation buyer would recognize, and the town has put off deciding on it. Proposed, decision postponed
Read this before quoting any of it

Not one of these three rows is space you could lease. They are hyperscale and single tenant, and the colocation market they sit beside is a handful of buildings on one road in Southfield. They are on the page because they decide what power and what politics the colocation operators will be negotiating inside for the next decade, and because the argument about who pays is already public: Oracle sought a 12 year, 50 percent abatement on real and personal property taxes against a $43 billion valuation it offered for the Saline Township project, and the township used a $4.8 billion valuation instead. Read the reporting.

Announced capacity is collected by hand from trade reporting and company statements, and each figure links to the report it came from. It is never added to a permit count: a permit is a document a jurisdiction issued, an announcement is a plan a company published. Neither is availability.

Announced capacity is collected by hand from trade reporting and company statements, and every figure links to the report it came from and was read in that report before it was written down. It is never added to the interconnection count above: one is a plan a company published, the other is a building a network registered itself into. Neither is availability.

What Stargate actually changed

The Saline Township project is a joint venture involving OpenAI, Oracle and Related Digital on a 250 acre site in Washtenaw County, put at $16 billion. Its 1.4 gigawatts would consume more electricity than a million homes and would make it the largest facility in Michigan. In December 2025 the Michigan Public Service Commission's three commissioners voted unanimously to conditionally approve DTE Energy's contracts to supply that power, and in January 2026 DTE accepted the conditions attached.

The tax argument ran alongside it and is worth knowing because it sets the template every other Michigan township is now working from. Oracle sought a twelve year, 50 percent abatement on real and personal property taxes against a $43 billion valuation it offered for the project. Saline Township ultimately used a $4.8 billion valuation instead, and a consent agreement required the township to approve the project in exchange for a pledge from Related Digital to invest $10 million locally.

None of that is capacity you can buy. It matters to a colocation tenant for one reason: DTE is now contractually committed to a load larger than anything else on its system, and every subsequent interconnection request in Southeast Michigan queues behind that commitment. Ask any operator offering you growth headroom how that headroom sits relative to the Saline contracts.

The rest of the pipeline, and how local it has become

Van Buren Township is weighing a one gigawatt proposal, reported to use as much as 3.6 million gallons of water a day. More than two hundred Lyon Township residents turned out to a meeting about a planned 1.8 million square foot data center. Allen Park postponed a decision on a 26 megawatt project, which is the only figure in this metro at a scale a colocation buyer would recognize, and it is the one the town could not decide on.

That pattern is the market. The very large projects are moving through state level utility regulation while the ordinary ones are getting stuck in township meetings, and the difference is not size so much as who is in the room. If you are being offered space in something unbuilt here, the question is which township, and what happened at its last meeting.

Where the market actually is, submarket by submarket

Northwestern Highway, Southfield

The carrier hotel corridor and effectively the whole interconnection market. 123Net operates several adjacent buildings here and EdgeConneX and 365 Data Centers sit alongside them. If you need carriers, exchanges or cross-connects in Michigan, this is the address.

Troy and the northern suburbs

ManagedWay and a handful of regional operators serve the Oakland County enterprise base. Suburban economics, hands-on service, meaningfully less network than Southfield. It suits production and back office loads for companies already in the area.

Royal Oak and the inner ring

Smaller multi-tenant facilities close to the city. A reasonable answer for a few racks with local hands, and rarely the right answer for anything that needs to grow.

Washtenaw and western Wayne counties

Saline Township, Van Buren, Lyon and Ann Arbor, where the gigawatt scale proposals are. This is where Michigan's power and politics are being decided and where none of the space is leasable. Watch it; do not shop it.

When this market is right, and when it is the wrong choice

Detroit is the right answer when your business is in Michigan. For an automotive supplier, a manufacturer, a health system or a regional financial services firm that needs low latency to its own plants and offices and a provider that will meet you in person, this market works well and the operators here are used to enterprise-sized deals rather than only hyperscale ones.

It is a reasonable disaster recovery position for a Chicago primary, at 280 miles and a short fiber run, with cheaper space and a genuinely different weather and grid exposure.

It is the wrong choice if you need scale or optionality. There is no wholesale colocation product here, the interconnection market is effectively one road, and DTE's queue now has a 1.4 gigawatt commitment ahead of whatever you ask for. If your requirement is measured in tens of megawatts, the honest comparison is Chicago or Columbus, both of which are close, deeper and further along.

How to actually negotiate in Southeast Michigan

Ask where the building is before you ask anything else, because nearly half this market's network sits on one street in Southfield and a facility elsewhere is a different product at a similar price. Get the specific building's carrier and network list, and if you are being shown a suburban site, price the cross-connect back to Northwestern Highway and get its provisioning time in writing. On power, ask directly how the operator's growth headroom sits relative to DTE's Saline Township commitments, because 1.4 gigawatts is now ahead of you in that queue and no operator's roadmap is independent of it. If the space is unbuilt, ask which township and check what its board has done this year, because the ordinary sized projects here are the ones getting stopped. And if a tax incentive is part of the pitch, ask which abatement, at what valuation, and whether it has actually been granted: the Saline Township deal was approved at a valuation an order of magnitude below the one first proposed.

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A scout can test this market against your power, density and date, tell you which buildings carry the networks you need, and price it beside the alternatives so the comparison is honest.

From the research desk

Latest market developments

All news & analysis
Development & Power

Michigan's attorney general asks regulators to rehear their approval of DTE's 20-year contracts for Google's Van Buren Township data center

Michigan Attorney General Dana Nessel filed a petition for rehearing on October 30, 2026 in Michigan Public Service Commission case U-22058, where the Commission on October 1 conditionally approved DTE Electric's special contracts to serve a planned Google data center in Van Buren Township that the petition describes as a 1 gigawatt facility. She asks the Commission to require annual reconciliation of costs and benefits, drop a cap on the customer's collateral and order more cost modeling that includes transmission costs, or else reject the contracts. The Commission's approval stands while the petition is pending. [Source 1] [Source 2]

Van Buren Township, Wayne County, Michigan · Approved: MPSC conditionally approved the DTE and Google special contracts on October 1, 2026. Petition for rehearing filed by the Michigan Attorney General on October 30, 2026; pending as of that date. Service expected to begin December 2027, per DTE.
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Development & Power

Michigan regulators approve DTE's 20-year power contracts for Google's Van Buren Township data center with an 80% minimum bill

The Michigan Public Service Commission approved DTE Electric's special contracts with Google on October 1, 2026 for a data center in Van Buren Township, Wayne County. The 20-year supply agreement requires Google to pay for at least 80% of contracted demand, and a separate agreement has Google pay for up to 1,600 MW of renewable energy and 480 MW of battery storage that DTE will build and own. DTE expects service to begin in December 2027 and reach maximum load by December 2028. [Source 1]

Van Buren Township, Wayne County, Michigan · Approved (MPSC approved the DTE and Google special contracts on October 1, 2026, with customer protection conditions). Service expected to begin December 2027, per DTE. No construction or energization status disclosed in the reviewed sources.
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Development & Power

DTE reports 2.4 GW of data center power agreements in Michigan and 2 GW more in advanced talks

DTE Energy told investors on September 28, 2026 that it has 2.4 GW of executed data center agreements in Michigan. It lists 1.4 GW for Oracle as approved and 1 GW for Google as still in the Michigan Public Service Commission approval process. DTE also says it is in advanced discussions with additional hyperscalers for about 2 GW more and is targeting another agreement by the end of 2026. [Source 1]

Southeast Michigan (Saline Township and Van Buren Township) · Oracle contracts: Approved (MPSC approval, per DTE as of September 28, 2026). Google contracts: Proposed (pending MPSC approval as of September 28, 2026). Further 2 GW: in discussions, no agreement disclosed
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