Updated 5th july 2025 – Microsoft has once again paused early work on a 900-acre portion of its planned data center expansion in Mount Pleasant, Wisconsin — part of a massive $3.3 billion campus project. The reason appears to be fast changing technology changes that could have forced a re-evaluation of the designs. In addition the fear of oversupply of capacity has also led to an assessment of whether it is wise to aggressively expand facilities leading to a more conservative approach.
While construction on the first phase of the data center remains “fully on track” and is still expected to go online by 2026, the company has temporarily halted progress on land earmarked for future phases. Initial site work was paused in January, resumed, and has now been paused again.
Microsoft declined to give a specific reason for the latest delay. However, the company stated that its full investment commitment remains unchanged. “We have expansion sites in Mount Pleasant where we intend to build additional infrastructure,” a spokesperson said.
Earlier this year, Microsoft said it was re-evaluating plans for the expansion area due to “recent changes in technology” that could impact facility design.
The first phase of construction, located near 90th Street and State Highway 195, fulfills Microsoft’s agreement with the Village of Mount Pleasant and Racine County, which allows until 2030 to begin Phase 2. Village officials confirmed that Microsoft is meeting its obligations, and the projected property value from Phase 1 alone is expected to offset local infrastructure costs.
Nationally, Microsoft may be reassessing its data center strategy. A February TD Cowen report indicated the company has backed out of multiple projects and may be facing an oversupply of data centers based on updated demand forecasts.
Although expansion in Mount Pleasant is paused, Microsoft’s long-term presence in Wisconsin appears secure — at least for now.
May 9th 2024 – Microsoft Corp. plans to invest $3.3 billion to build an artificial intelligence(AI)-focused data center campus in Mount Pleasant, Wisconsin.
The tech giant is making a huge investment in Southeast Wisconsin to turn the region into a powerhouse for artificial intelligence technology and innovation. The tech giant plans to pour $3.3 billion into building up cloud computing and AI infrastructure in the area. But it’s not just about the physical data centers and hardware.
Microsoft also announced it will open the country’s first AI co-innovation lab specifically focused on manufacturing applications. This cutting-edge facility will allow companies to team up with Microsoft’s experts to explore new AI-driven manufacturing solutions. The goal is to keep Wisconsin at the forefront of advanced manufacturing prowess.
But developing the technology is only half the battle. Microsoft recognizes the need for a skilled workforce to utilize these powerful AI tools. That’s why they are launching a major initiative to provide AI training to over 100,000 Wisconsin residents. From students to workers already in industries being transformed by AI, this skills investment aims to prepare the state’s workforce for the AI-powered jobs of the future.
“Wisconsin has a rich and storied legacy of innovation and ingenuity in manufacturing,” said Brad Smith, Vice Chair and President of Microsoft, in a press release. “We will use the power of AI to help advance the next generation of manufacturing companies, skills, and jobs in Wisconsin and across the country. This is what a big company can do to build a strong foundation for every medium, small and start-up company and non-profit everywhere.”
“This is a watershed moment for Wisconsin and a critical part of our work to build a 21st-century workforce and economy in the Badger State,” said Governor Tony Evers. “Microsoft is a blue-chip corporation that recognizes the strength of Wisconsin’s workers, infrastructure, economy, and our quality of life. The Microsoft has chosen to locate and invest here because they know the future is here in Wisconsin.”
Read also: Microsoft announces new data centre campus
Microsoft Unveils $3.3B Plan for AI Data Center Campus in Wisconsin
The tech giant, Microsoft will roll out these investments in a four-part strategy designed to create long-term benefits for the state’s economy and job market, according to Microsoft.
First, Microsoft starts the investment of $3.3B now and expects it to end in 2026. Microsoft said that it will require around 2,300 construction workers, whom it will hire sometime in 2025 to build the “state-of-the-art” data center campus in Mount Pleasant, Wisconsin. Microsoft will train around 1,000 students from the Gateway Technical College to work in the center.
Second, to help build a thriving regional AI innovation economy, Microsoft will establish a manufacturing-focused AI Co-Innovation Lab on the campus of the University of Wisconsin-Milwaukee, the first of its kind in the United States. Microsoft will connect this lab with Wisconsin manufacturers and other companies, its AI experts, and its developers to design and prototype AI and cloud solutions to improve and accelerate their work and grow their businesses. This lab will aim to serve 270 Wisconsin companies by 2030, including 135 manufacturing businesses.
Third, reflecting the critical role of education and training in AI transformation, Microsoft will partner with United Way Wisconsin, United Way Racine, and other community partners to upskill more than 100,000 people across Wisconsin by 2030 on generative AI. Microsoft will help train residents to use new applications, including Microsoft Copilot, a suite of Microsoft AI services that enhance productivity and creativity, through this curriculum.
And finally, Microsoft recognizes that a strong and vibrant economy isn’t possible without a strong and vibrant community. That’s why Microsoft will invest in a series of long-term local education and youth employment programs to support the very community that is supporting us.
Read also: Microsoft completes land purchase deal for new Mount Pleasant Data Centre
