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Microsoft has received unanimous approval from local officials in Mount Pleasant, Wisconsin, to construct 15 additional data centers near its existing campus, marking one of the company’s largest U.S. infrastructure expansions to date and signaling a dramatic turnaround for land once earmarked for Foxconn’s ill-fated manufacturing project.

The village board signed off on Microsoft’s site plans this week, clearing the way for a development that spans nearly 9 million square feet across two adjacent parcels just northwest of the company’s current facility. According to village filings, the combined taxable value of the new data centers exceeds $13 billion, making it one of the most valuable private developments in the region’s history.

Construction and related work tied to the project is expected to stretch over roughly a decade, providing long-term employment for union trades and contractors, local officials said.

Powering Microsoft’s AI ambitions

The expanded data center footprint is critical to Microsoft’s broader artificial intelligence strategy.

Additional capacity will allow the company to recognize revenue already booked from OpenAI and other enterprise customers, while supporting the enormous computing demands required to train and run generative AI models. Microsoft is locked in an intense infrastructure race with Amazon, Google, and Oracle, all of which are rapidly building data centers packed with Nvidia GPUs to meet surging demand for cloud-based AI services.

Globally, hyperscalers are spending tens of billions of dollars annually on data centers, networking equipment, and advanced chips. Microsoft alone has guided to capital expenditures exceeding $50 billion in recent fiscal years, much of it directed toward AI infrastructure.

But building these facilities is far from simple. Suitable sites are increasingly hard to secure due to limited power availability, water usage concerns, and rising opposition from nearby communities. That makes Mount Pleasant’s supportive stance particularly valuable for Microsoft.

A stark contrast to Foxconn’s unrealized promises

The approval also represents a remarkable reversal for land once associated with one of Wisconsin’s most controversial economic development projects.

In 2017, electronics manufacturer Foxconn announced plans for a $10 billion factory in Mount Pleasant that was expected to create up to 13,000 jobs. The project was heavily promoted at the national level, and the village purchased large tracts of land while the state invested heavily in infrastructure upgrades.

Those ambitions never materialized. By 2023, Foxconn employed only about 1,000 people statewide, far short of original projections, leaving Mount Pleasant burdened with more than $250 million in debt tied to land acquisition and development.

Microsoft’s arrival has helped revive the site’s prospects, offering a far more concrete path to economic activity and long-term tax revenue.

Community response and project details

Unlike nearby Caledonia, where residents pushed back against Microsoft’s rezoning request for a separate data center site last year, Mount Pleasant has largely embraced the expansion.

During the village board’s public comment period, six residents spoke in favor of the project, while three raised concerns, primarily around the temporary nature of construction jobs.

Village board president David DeGroot pushed back strongly on that characterization, emphasizing that workers would be on-site for years.

He told attendees that construction activity is expected to last around 10 years, adding that there is nothing temporary about a decade of steady employment for skilled trades.

The development will be spread across two large lots. Microsoft acquired the land from the village and private owners throughout 2023 and 2024. Plans include three new electrical substations to support the energy-intensive facilities, highlighting the massive power demands of modern AI data centers.

Local officials also addressed environmental concerns. The 15 new facilities are not expected to exceed the 8.4 million gallons of water Microsoft already receives annually from the nearby city of Racine, according to Mount Pleasant’s community development director.

Following the village board’s approval, the planning commission also signed off on updated site plans that incorporated staff recommendations.

What comes next

With zoning and site plans approved, Microsoft can now move forward with final civil engineering designs and apply for building permits, setting the stage for construction to begin.

For Mount Pleasant, the project represents a long-awaited opportunity to replace unmet Foxconn expectations with a tangible, high-value investment. For Microsoft, it strengthens a rapidly expanding U.S. data center network that underpins its cloud and AI ambitions.

As demand for generative AI continues to surge, the Wisconsin expansion positions Microsoft to scale faster, serve enterprise clients more effectively, and stay competitive in a global infrastructure race that is reshaping both the tech industry and local economies across America.

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