Microsoft has announced plans to build a second large artificial intelligence data center in Wisconsin, bringing its total investment in the state to more than 7 billion dollars. The new facility, estimated at 4 billion dollars, will be developed alongside a 3.3 billion dollar data center in Mount Pleasant, Racine County, which was announced last year.
Microsoft confirmed that the first data center remains on schedule to open next year. It is expected to employ about 500 people at its peak and expand to around 800 jobs once the second data center is completed. With the addition of this second project, the site is set to become home to the world’s most powerful AI supercomputer, designed to link together hundreds of thousands of advanced Nvidia chips.
Racine County, situated between Milwaukee and Chicago, has been a focal point for political and business discussions in recent years. The site was originally intended for a 10 billion dollar factory by electronics manufacturer Foxconn during the first term of President Donald Trump. However, those plans were significantly reduced. At Microsoft’s launch of the first data center last year, US President Joe Biden, then campaigning for re-election against Trump, drew attention to the scaled-back Foxconn project.
As part of its strategy, Microsoft said it will pre-pay for electrical infrastructure to avoid an increase in electricity rates in the region. The facilities will also use a state-of-the-art cooling system that leverages Wisconsin’s naturally cool climate, keeping annual water consumption at the level of an average restaurant. To balance energy use, Microsoft plans to develop solar power in another part of Wisconsin. However, Microsoft President Brad Smith acknowledged that new fossil fuel power generation would still be needed near the data centers.
Explaining the decision, Smith said, “what can be built in a particular area,” highlighting that the region is considered liquefied natural gas territory. He also stressed the employment benefits that the projects would bring. Although the 800 permanent jobs may be fewer than the thousands required during construction, there will still be strong demand for skilled trades such as electricians and pipefitters. “All the things that we build need to be operated,” Smith said. “It needs to be maintained. These are good jobs.”
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