News Summary
Microsoft is planning to invest $4 billion in a new data center in Mount Pleasant, Wisconsin, which will be among the most advanced AI facilities globally. This investment will increase Microsoft’s total commitment in the area to approximately $7.3 billion. The facility will employ a high-performance supercomputer for AI development, create around 800 jobs, and introduce educational initiatives for local residents, despite concerns about environmental sustainability regarding water and electricity usage.
Mount Pleasant, Wisconsin, is set to become the site of Microsoft’s second data center, a groundbreaking project that will require an investment of $4 billion. This new facility is anticipated to be the most advanced AI center in the world, enhancing Microsoft’s already significant presence in the area, which will reach a total investment of approximately $7.3 billion when combined with previous commitments. The announcement was made on September 18 as part of Microsoft’s ongoing plans to expand its AI capabilities.
The new data center will support a cutting-edge distributed training supercomputer designed to significantly enhance AI development. Microsoft’s first data center in Mount Pleasant is expected to go live in early 2026, and it will feature hundreds of thousands of powerful NVIDIA graphic processing units, making it ten times more powerful than any existing supercomputer. Additionally, Microsoft plans to build the second largest “chiller” in the world to cool the technology within the new facility, surpassing the current largest chiller that operates in Qatar.
Microsoft’s initiatives in Mount Pleasant will also generate substantial job opportunities. Over 400 employees will be hired for the first data center, and total employment across both facilities is expected to reach nearly 800 by the end of 2028. Alongside these positions, thousands of construction jobs are anticipated to arise from the development of the data centers. In collaboration with local educational institutions—Gateway Technical College, UW-Milwaukee, and Titletown Tech—Microsoft will establish a “data center academy” to facilitate worker training and partnerships with small businesses.
While the investment is widely praised, especially by Wisconsin Governor Tony Evers, who notes that it positions the state as home to the most powerful data center in the world, concerns regarding environmental sustainability have surfaced. The new data center’s significant demand for water and electricity prompted scrutiny of its projected usage. Documents reveal that the first facility will require 234,000 gallons of Lake Michigan water per day, with future expansions potentially increasing consumption to 2.8 million gallons per year.
To address these environmental concerns, Microsoft has assured that the data center will employ a closed-loop cooling system to promote efficient water management. The facility will be engineered to include enough fiber cabling to circle the Earth four times and is expected to consume water at levels comparable to that of a typical restaurant. However, an analysis from Clean Wisconsin raised alarms over the potential electricity consumption of the centers, which could surpass that of all the homes in Wisconsin.
In response to these concerns, Microsoft and We Energies are working together to propose special energy rates designed for data centers, intending to minimize the impact on local residents while ensuring stable pricing. To further reinforce its commitment to sustainability, Microsoft is developing a 250-megawatt solar project in Portage County.
In addition to constructing the data centers, Microsoft is proactive about expanding educational and job training opportunities. Their goal is to reach 100,000 people in Wisconsin through AI education initiatives, aiming to instill innovation across a variety of fields, including manufacturing and personalized medicine.
The Racine County data center is positioned as the first of several nationwide facilities in Microsoft’s endeavor to compete within the AI technology landscape. With significant investments and initiatives underway, the project is expected to have a profound impact on the local economy and job market while also sparking discussions surrounding environmental implications.
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Additional Resources
- Milwaukee Journal Sentinel: Microsoft Plans $4 Billion Data Center
- Wikipedia: Data Center
- Urban Milwaukee: MSOE Plans AI Engineering Building
- Google Search: AI Engineering Education
- Milwaukee Journal Sentinel: AI Changing Life in Wisconsin
- Google Scholar: AI Impact Wisconsin
- Milwaukee Journal Sentinel: Data Center Sites in Wisconsin
- Encyclopedia Britannica: Data Centers Wisconsin
- Milwaukee Journal Sentinel: AI in Home Improvement Companies
- Google News: AI in Home Improvement
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MILWAUKEE STAFF WRITER The MILWAUKEE STAFF WRITER represents the experienced team at HEREMilwaukee.com, your go-to source for actionable local news and information in Milwaukee, Milwaukee County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Summerfest, Milwaukee Film Festival, and the Milwaukee Boat Show. Our coverage extends to key organizations like the Metropolitan Milwaukee Association of Commerce and Visit Milwaukee, plus leading businesses in manufacturing and brewing that power the local economy such as Harley-Davidson and MillerCoors. As part of the broader HERE network, we provide comprehensive, credible insights into Wisconsin's dynamic landscape.
