Microsoft has confirmed it is planning to develop a data center in Grand Rapids, Michigan. Microsoft has submitted a rezoning request for land at 7174 Patterson Avenue in Gaines Township. The land was purchased by Microsoft in October 2024. The rezoning applies to a 40.5-acre parcel, part of the 316 acres owned by Microsoft.
Furthermore, it seeks to change its designation from large-scale planned unit development to light industrial to match the southern parcel. Both will then be used for data center development. The application is expected to be discussed at a meeting on December 18. “Project plans, including construction timelines, are yet to be finalized. We continue to work with our local partners and are committed to sharing information when we have it,” noted Microsoft spokesperson. Microsoft purchased the land in question for $45.3 million, located between Patterson Avenue and 76th Street. The project highlights the acceleration of data center projects with some such as Crusoe’s AI data center campus in Abilene showcasing this growth.
Project Factsheet
Overview
- Microsoft confirms intentions to build a new data center in Grand Rapids, Michigan.
- Project also entails rezoned land in Gaines Township on the use of data centers.
Key Details
- Developer: Microsoft
- Location: 7174 Patterson Avenue, Gaines Township, off of 76 th Street.
- Land Purchased: October 2024
- Purchase Price: $45.3 million
Site Information
- Rezoning Area: 40.5 acres
- Total acreage of Microsoft lands: 316 acres.
- Zoning Change: Light industrial change expressed as planned unit development.
- Purpose: Development of data centers.
Project Status
- Rezoning request submitted
- General discussion arranged to December 18.
- Timeline of the construction is still under construction.
Strategic Context
- Grows global footprint of Microsoft data centers in the United States.
- Favors AI and cloud computing architecture.
- Enhances the budding market of data centres in Michigan.
Regional Impact
- Giving impetus to Grand Rapids as a data center tertiary hub.
- Also supplements current operations in Detroit and western Michigan.
- Indicates the increasing popularity of non-traditional U.S. data center locations
Outlook on the Microsoft Data Center in Grand Rapids
The scope of implementation on Microsoft data center in Grand Rapids is also expected to position Michigan as an Ai data center hub. At the time of purchasing, Michigan was not a major data center hub. This is despite the presence of operators including Switch US Signal and Hyperscale Data (previously Sentinum/Ault Alliance). However, in the year since several new projects have popped up, including a $1 billion data center for Meta.
Moreover, this has since been withdrawn and is planned to be home to one of the Stargate data center campuses. Most of Michigan’s data centers are centered on Detroit, but Grand Rapids, towards the west of the state, also has a small hub of facilities.
Data centers are basically warehouses of computer hardware for servers, data storage and network equipment that are used to power artificial intelligence and cloud computing. However, they use significant electricity and water to power and cool their servers and equipment.
