U-M, Los Alamos $1.2B computing hub: No federal funds committed yet
A proposed $1.2 billion computing research facility backed by the University of Michigan and Los Alamos National Laboratory has no federal funding committed, raising questions about the project's future and its transparency.
U.S. Rep. Debbie Dingell, D-Ann Arbor, released the university's latest response to her inquiries on Friday, Oct. 9, confirming that the memorandum of understanding between the two institutions carries no legal obligations or funding guarantees.
What does the memorandum of understanding actually say?
University President Domenico Grasso confirmed in an Oct. 8 letter to Dingell that the agreement, signed Nov. 25, 2024, by former U-M President Santa Ono and Nov. 26, 2025, by Los Alamos Director Thom Mason, is only a framework for collaboration.
It describes the overarching proposed collaboration between U-M and LANL, but it does not authorize any work or create any performance obligations, Grasso wrote.
All future activities would require separate agreements governing specific terms, conditions, and funding.
Is Los Alamos contributing $300 million?
Despite references to a potential $300 million contribution from Los Alamos, Grasso's response repeatedly states the national laboratory has made no commitment of funds. Los Alamos has only supported a portion of the site-agnostic design effort through indirect funding.
Grasso clarified that before any funding could be allocated, the facility must be substantially complete and federal funds must be appropriated for that specific purpose. The university would be responsible for any cost overruns.
Why is Congresswoman Dingell opposing the project?
Dingell has been a vocal critic of the proposed facility off Textile Road near the Huron River in Ypsilanti Township. She is demanding the full memorandum of understanding be released and has urged the Michigan Department of Environment, Great Lakes, and Energy and the U.S. Environmental Protection Agency to conduct a formal environmental review.
She is also drafting a federal data center Bill of Rights and seeking community input on the framework.
I remain deeply frustrated by the lack of transparency, accountability, and meaningful communication surrounding this project, Dingell said in her September letter.
Community members have voiced opposition at heated town halls, seeking answers about potential environmental impacts and the roles of the university and national laboratory.
What happens next for the computing facility?
Grasso said the university remains committed to addressing questions about water and energy use, environmental impacts, public safety, and research activities.
We have committed to addressing these issues openly, and will provide the best information available as planning and design continue, Grasso said.
The facility does not appear in the National Nuclear Security Administration's budget profile for future years, suggesting significant hurdles remain before construction could begin.
Frequently asked questions about the U-M computing center
Will the University of Michigan computing facility be built?
No construction timeline has been confirmed. The project requires substantial completion before federal funds can be appropriated, and no funding has been committed to date.
Who is paying for the $1.2 billion project?
The funding sources remain unclear. Los Alamos has made no commitment of funds, and the university would be responsible for cost overruns. No federal dollars have been allocated.
Why is the community concerned about the project?
Residents have raised concerns about water and energy usage, environmental impacts, and a lack of transparency from the university and Los Alamos National Laboratory.