Microsoft Gets Green Light for $13 Billion Data Center Expansion

Microsoft just secured unanimous approval from Mount Pleasant, Wisconsin, to build 15 additional data centers worth more than $13 billion in taxable value. The expansion comes as the tech giant races to meet surging demand from OpenAI and other AI clients in an increasingly competitive infrastructure arms race.

Learning from Foxconn's Failure

Mount Pleasant knows the sting of broken promises. In 2017, Foxconn pledged a $10 billion plant that would create 13,000 jobs, backed by then-President Trump's fanfare. The village cleared land, the state funded infrastructure improvements, and residents waited. By 2023, Foxconn employed just 1,000 people statewide, leaving the village with over $250 million in debt.

This time feels different. Village Board President David DeGroot pushed back against critics who called data center jobs "temporary," telling union representatives: "You're going to be out there on those sites for the next 10 years, doing your jobs, plying your trade, and I don't see anything temporary in 10 years."

The contrast is striking. Where Foxconn promised manufacturing jobs that never materialized, Microsoft's data centers represent something more fundamental: the infrastructure backbone of the AI revolution.

The Infrastructure Arms Race

Microsoft's expansion isn't happening in isolation. Amazon, Google, and Oracle are all racing to build data centers packed with Nvidia chips capable of training and running generative AI models. The challenge? Finding suitable sites where utilities can provide the massive power requirements these facilities demand.

Resistance is growing. In neighboring Caledonia, residents successfully opposed Microsoft's rezoning request, forcing the company to abandon that location in September. Mount Pleasant's welcome stands out in an increasingly hostile landscape for data center development.

The approved plans span two lots northwest of Microsoft's existing facility, totaling nearly 9 million square feet of building space with three proposed substations. The scale is industrial: these aren't just buildings, they're the physical manifestation of our digital future.

Economic Reality Check

At Monday's village board meeting, six people voiced support while three raised concerns. The math tells a compelling story: 10-year construction timeline, significant tax revenue, and sustained employment in a region still recovering from Foxconn's false start.

Water usage will reach 8.4 million gallons annually, but won't exceed what the nearby city of Racine can supply. It's a careful balance between growth and sustainability that reflects lessons learned from previous industrial ventures.

The unanimous approval signals more than just local support—it represents a community betting on digital infrastructure over traditional manufacturing, on the permanence of AI demand over the volatility of global supply chains.