Microsoft’s $3.3 billion data center campus in Mount Pleasant, Wisconsin, is expanding, signaling a significant investment in the region’s digital infrastructure. The first phase of development is set to wrap up next year, with the site becoming operational by early 2026. This expansion comes after Microsoft’s initial announcement in May 2024, which included a commitment to a $3.3 billion investment. The company has already started hiring full-time staff, demonstrating its commitment to the project.
The expansion plans include building on additional sites in Racine County, although construction has not yet officially started. Microsoft has an active building permit for Area 3-A, east of 105th Street and north of County Road KR. The expansion investment will be “new and additive” to the initial $3.3 billion committed to the original data center, according to company officials.
In late 2024, Microsoft paused work on its expansion sites to evaluate its designs. However, the company clarified that this pause did not reflect on its long-term plans, emphasizing that the project will be built out in phases. American Transmission Co. is working on a substation on part of Area 2, north of the initial data center site, after receiving approval from the village of Mount Pleasant.
Beyond the data center, Microsoft is engaging in local partnerships that highlight its commitment to sustainability and community development. The company has worked with the Root-Pike Watershed Initiative Network to restore more than 100 acres of prairie and forestland in Lamparek Creek in Mount Pleasant. Additionally, Microsoft has partnered with the University of Wisconsin-Milwaukee to establish an artificial intelligence lab focused on manufacturing.
This expansion is part of a broader trend of data center development in Wisconsin. Since Microsoft’s initial announcement, other data center developers have also carved out spots across the state. In Beaver Dam, a developer has plans for a 560-acre data center reportedly for Meta. More recently, Virginia-based Dewberry Engineers proposed a 245-acre data center in Caledonia.
The growth of data center development in Wisconsin underscores the state’s emerging role as a hub for digital infrastructure. As Microsoft and other companies invest in these projects, they are not only boosting the local economy but also contributing to the region’s technological advancement. The integration of sustainability initiatives and community partnerships further highlights the potential for these projects to have a positive, lasting impact on the region.
This news shapes the development in the sector by demonstrating the increasing demand for data center infrastructure and the strategic importance of regional investments. As companies like Microsoft expand their footprint, they are setting a precedent for sustainable and community-focused development, which could influence future projects and policies in the construction and technology sectors.