On Monday, January 26, local officials in Wisconsin approved Microsoft’s (NASDAQ: MSFT) plan to build 15 new data centers and expand existing ones in the Mount Pleasant area of the state.
The new data centers will be located near Microsoft’s existing facilities. This approval allows the company to further enhance its data center capacity, improve computational power, and bolster its artificial intelligence ambitions.
The additional data center capacity will also enable Microsoft to secure the revenue it earns from OpenAI and other clients.
Project Approval
Microsoft’s new project in Wisconsin is divided into two areas, both located to the northwest of the company’s current campus. According to documents, the expected total construction area of these two parcels will be nearly 9 million square feet, including three proposed substations.
The pre-tax value of the proposed projects is estimated to exceed $13 billion. With the new data centers, Microsoft will become the largest employer in the area.
The Mount Pleasant Village Board unanimously approved the plans for the two parcels on Monday. The Village Planning Commission had previously approved the site plans, including changes suggested by the staff.
Samuel Schultzh, Director of Community Development for Mount Pleasant, also stated that the 15 new data centers will not require more water than the 8.4 million gallons expected to be sourced from the nearby city of Racine.
Intense Competition
Currently, Microsoft is in competition with Amazon (NASDAQ: AMZN), Google (NASDAQ: GOOGL), and Oracle (NYSE: ORCL) to build data centers equipped with NVIDIA chips, which can be used to train and run generative AI models.
The site selection process for these facilities has been challenging, primarily due to the massive power requirements of data centers, which often exceed the capabilities of local power companies. Additionally, an increasing number of residents living near proposed sites have been voicing opposition.
The approval for Microsoft’s data center construction in Wisconsin reflects that the residents and officials of Mount Pleasant generally welcome the company’s expansion in the town.
This may also be linked to Microsoft’s earlier commitment this month. In mid-January, Microsoft launched a program called “Community-First AI Infrastructure,” built around five key promises: setting power rate structures and funding infrastructure, reducing water usage intensity, training and hiring local workers for construction and operations, paying local property taxes in full, and investing in AI education.
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