Updated June 23, 2026 – Microsoft has completed construction of the first data center facility at its massive Mount Pleasant campus in Wisconsin, marking a major milestone in one of the largest AI infrastructure investments currently underway in the United States. Completion of the Fairwater facility forms part of Microsoft’s initial US$3.3 billion investment in Wisconsin and positions the company to begin operations for what it has described as one of its most advanced AI-focused data center developments.
Mount Pleasant Data Center Campus Background
The project is located in Racine County on land that was originally assembled for the high-profile Foxconn manufacturing development announced in 2017. Microsoft acquired portions of the site and has transformed it into the Mount Pleasant campus – whose first data center construction has been completed. Construction of the first phase has been progressing since 2023, with Microsoft previously indicating that the initial data center would become operational in early 2026.
Fairwater AI Data Center Campus Portfolio
According to Microsoft, the completed facility represents the first operational component of a much larger campus designed to support advanced AI workloads, cloud services and large-scale model training. The wider development encompasses a 315-acre site with multiple buildings totaling approximately 1.2 million square feet.
Microsoft has also described the campus as part of its Fairwater family of advanced AI data centers, featuring hundreds of thousands of next-generation graphics processing units (GPUs). It also has high-speed networking infrastructure designed to support increasingly sophisticated AI applications.
Project Financing and Microsoft’s Investment in Wisconsin Data Centers
Microsoft’s initial commitment to the Mount Pleasant campus totals approximately US$3.3 billion. The company also announced an additional US$4 billion investment to develop a second large-scale AI data center in the area. Together, these commitments bring Microsoft’s planned Wisconsin investment to more than US$7 billion.
Additionally, according to Microsoft, hundreds of full-time employees have been employed to support operations at the first data center in the Mount Pleasant campus in Wisconsin. The company also expects workforce numbers to increase substantially as additional phases are completed. Microsoft reported in May 2026 that about 375 employees had been hired, with plans for further recruitment as the campus expands.
Who was Involved in the Construction of First Microsoft Data Center Facility in Mount Pleasant, Wisconsin
Microsoft is the project developer and owner of the Mount Pleasant data center campus.
Major contractors involved in the construction include:
- Kiewit Corporation – Construction contractor
- The Walsh Group – Construction contractor
- The Boldt Company – Construction contractor
- American Transmission Company (ATC) – Power infrastructure partner
- Gateway Technical College – Workforce training and data center talent development partner
Microsoft Fairwater Data Center in Mount Pleasant, Wisconsin: Fact Sheet
Investment Value: US$3.3 billion for Phase 1 construction. An additional US$4 billion expansion to follow.
Site Area: 315 acres
Built Area: 1.2 million square feet across multiple buildings
Primary Use: AI training, cloud computing and digital infrastructure services
Construction Start Date: 2023
Construction End Date: June 2026
Status: Construction completed. Microsoft’s first Mount Pleasant AI data center is operational.
Outlook on Wisconsin Data Center Development by Microsoft
With construction of the first data center facility now complete, Microsoft is expected to focus on operations ramp-up activities while continuing development across the wider campus. The Wisconsin data center is also at the spotlight for the amount of water it will use annually. Microsoft has however promised water-efficient cooling technologies at the facility.
The company is also advancing expansion phases in Racine County. This includes plans for numerous future data center buildings that could transform the region into one of the largest AI infrastructure clusters in the U.S.
Continued investment, workforce growth and power infrastructure upgrades are expected to underpin the next stage of development as Microsoft scales its AI capabilities to meet rapidly growing global demand.
Microsoft’s Most Powerful AI Data Center in the World in Mount Pleasant, Wisconsin
Reported September 18, 2025 – Microsoft announced that its AI data center campus in Mount Pleasant, Wisconsin, is entering the final stages of development. The facility, known as Fairwater, will become one of the world’s most advanced AI data centers once operational. The project emphasizes responsible growth, long-term investment, and economic development within Wisconsin and the United States.
Construction is progressing toward completion, with commissioning expected in early 2026. Microsoft has also begun recruiting full-time staff to support the upcoming operations. In addition, the company has increased its total investment in Wisconsin to over $7 billion, following an additional $4 billion commitment to its earlier $3.3 billion pledge. The funding will support the construction of a second data center of similar size and capacity. The development contributes to Wisconsin’s growing role as a hub for large-scale data infrastructure, alongside projects such as Meta’s upcoming facility in Beaver Dam. Other than the world’s most powerful AI data center, Microsoft is making commendable strides in its data center projects with a planned data center expansion in the UAE. 
Microsoft and Abu Dhabi’s G42 announced a 200-megawatt data center expansion in the UAE. It is part of a more than $15 billion investment commitment by the US tech giant in the Gulf country. The expansion will be delivered through Khazna data centers, a unit of G42. Furthermore, it is expected to start coming online before the end of next year. The two firms noted this in a joint statement without providing further details. Microsoft said this week its investment in the UAE will reach $7.3 billion between 2023 and the end of this year. Moreover, there will be a further $7.9 billion earmarked for 2026-2029.
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 data center 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.
Microsoft Fairwater Data Center in Mount Pleasant, Wisconsin: Project Overview
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.
Microsoft Pauses Expansion Work on Mount Pleasant Data Center Expansion
Reported July 5, 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 is located near 90th Street and State Highway 195. It fulfills Microsoft’s agreement with the Village of Mount Pleasant and Racine County. The deal also foresees start of Phase 2 construction in 2030. Mount Pleasant officials also confirmed that Microsoft is meeting its obligations. They also note that 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.
Microsoft Plans US$3.3 Billion Data Center Investment in Mount Pleasant, Wisconsin
Reported May 9, 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.
Key Quotes
“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. It is also 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.
Firstly, Microsoft starts the investment of $3.3B now and expects it to end in 2026. Microsoft also 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.
Secondly, 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. This will be 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.
Thirdly, 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 also help train residents to use new applications, including Microsoft Copilot, a suite of Microsoft AI services that enhance productivity and creativity, through this curriculum.
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