Microsoft to Build “The World’s Most Powerful AI Datacenter in Mount Pleasant”; New Investment Announced Amid Questions of Resource Use

MADISON, Wis. (CIVIC MEDIA) – Microsoft is doubling down on its Wisconsin datacenter presence with a new $4 billion investment to expand its Mount Pleasant campus.

The move, announced in a celebratory statement from Gov. Tony Evers, pushes its total spending in the state to over $7 billion.

Construction on the first phase is expected to finish next year. According to Microsoft and the governor, the project will support nearly 10,000 jobs, with the caveat of those jobs topping out during what are called ‘peak periods’. Microsoft plans a second, similar-sized datacenter by 2028.

The project’s water use was in question earlier this week, before this announcement, with a lawsuit filed. A Milwaukee-based advocacy group sued the City of Racine to find out how much the initial project would use. The city did release the information post-filing, with that data showing an estimated at 8.4 million gallons of water annually. That amount falls within Racine’s approved Lake Michigan water diversion limits.

Other environmental advocates, like Clean Wisconsin, warn the energy demand from the original Racine County project and another AI datacenter in Port Washington could exceed that of all Wisconsin homes combined. They are calling for more transparency around water and power usage.

Meanwhile, a proposed 244-acre Racine County datacenter near Oak Creek Power Plant in Caledonia faces community push back over concerns about farmland loss and changing the rural landscape. A rezoning decision has been delayed to allow more time for review and public input.

Evers is praising Microsoft’s investment for boosting Wisconsin’s economy, workforce, and tech leadership while state efforts aim to support growth in this expanding industry