GRAND RAPIDS, Mich. (WOOD) -- The University of Michigan is planning a $1.25 billion AI research facility.

During its meeting Tuesday, the Michigan Strategic Fund board approved a $100 million Strategic Site Readiness Program grant for the project. The school has committed to funding $850 million of the $1.25 billion price tag, while the U.S. Department of Energy's Los Alamos National Laboratory will contribute $300 million, according to a memo from the Michigan Economic Development Corporation.

The University of Michigan and Los Alamos plan to build the project on a 20-acre piece of property in Ypsilanti Township, about 15 minutes away from the school's campus. It will include two connected buildings, one for classified work from Los Alamos and the other for research from the school and its students. The unclassified building will also be open to the private sector and other Michigan universities.

The project will create 200 high-wage jobs with a $200,000 average annual salary, the MSF Board was told before its vote Tuesday.

The AI research facility will have a focus on national security and energy solutions. It will "solidify Michigan's premier location as where research is done," Chris Kolb, the school's vice president for government relations, told the MSF Board Tuesday.

"AI is here, it's coming. And AI is different than computing before; Before, computing enabled research. AI will drive research," he said. "It is exciting that we'll be at the forefront of this."

The project is expected to be fully operational by 2030.