Microsoft Nears Completion on the World’s Most Powerful AI Data Center in Mount Pleasant, Wisconsin

Updated September 18, 2025: In a recent blog post today, Microsoft’s Vice Chair and President Brad Smith has noted that the company is in the final phases of its AI data center campus in Mount Pleasant, Wisconsin. Moreover, Brad noted that once done, Fairwater will be the world’s most powerful AI data center. He also noted that the facility is more than a technological feat as it promises to grow responsibly. It also aims to invest deeply and create opportunities for Wisconsin and the United States. The company is on track to complete construction as it hopes to bring the data center online in early 2026.

The project has already commenced hiring full-time employees to facilitate in its operations. Aside from this, the vice chair noted that the company is committing an additional $4 billion to its earlier pledged $3.3 billion. The allocated funds will be used in the next three years to build the company’s second data center of similar size and scale. The newly added funds brings Microsoft’s investment in Wisconsin to more than $7 billion. Wisconsin is becoming home to some of the most powerful data centers as Meta makes advances to complete one of its own in Beaver Dam.

The Scope of Implementation on Microsoft AI Data Center Campus in Wisconsin

Once complete, Microsoft AI data center campus in Wisconsin will house hundreds of thousands of the world’s most powerful NVIDA GPU’s. Moreover, they will operate in seamless clusters connected by enough fiber to “wrap the planet four times over,” according to Brad. The processors will handle training for frontier AI models, delivering ten times the performance of today’s fastest supercomputers. The data center is designed to help researchers and engineers build the world’s first advanced models. Furthermore, it will facilitate in testing ideas faster and doing it all more efficiently. The plant will also benefit residents of Wisconsin with new jobs, skills, and opportunities.

More than 90 percent of the facility will rely on a state-of-the-art closed-loop liquid cooling system, filled during construction and recirculated continuously. On the other hand, the remaining portion of the facility will use outside air for cooling, switching to water only on the hottest days. Through this, it will minimize environmental impact and maximizing operational efficiency. The technological milestone of the datacenter is expected to need modest water use annually. Brad notes that the facility will require roughly the amount of water a typical restaurant uses annually or what an 18-hole golf course consumes weekly in peak summer.

Project Factsheet

Significance:

Ranked as the world’s most advanced AI data center, named Fairwater.
Coming online in early 2026, a monumental U.S. technology accomplishment.
Symbolizes $7 billion of Microsoft investment in Wisconsin.

Infrastructure:

Capable of housing hundreds of thousands of NVIDIA GPUs in uninterrupted high-speed clusters.
Fiber network capacity described as sufficient to “wrap the planet four times over.”
Over 90% cooled by closed-loop liquid cooling system; minimal annual water usage.

Developer & Funding:

Built and funded by Microsoft, spearheaded by Vice Chair Brad Smith.
Initial pledge of $3.3 billion was supplemented with an additional $4 billion.
Investment is for both the Mount Pleasant center and a second equal-sized center.

Scope of Implementation:

Allows training of frontier AI models at 10x current supercomputer performance.
For responsible growth, creating jobs, skills, and opportunities in Wisconsin.
Seeks to reduce environmental footprint while enhancing global AI capacity.

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.

State of Affairs Regarding Microsoft AI Data Center in Wisconsin

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.”

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.