Microsoft picks up where Foxconn left off with new $3B datacenter at Wisconsin site

As Microsoft builds out its artificial intelligence empire it settled on making use of the previously heralded Foxconn mega-project Racine, Wisconsin location for its next data center.

Microsoft announced its intent to undergo a $3.3 billion dollar investment in the state of Wisconsin to help stimulate economic growth and innovation in the region. The company’s new data center news comes alongside a visit from President Joe Biden to Racine, Wisconsin to celebrate use of Foxconn’s failed attempt to deliver on a $10 billion dollar investment intended to address similar Microsoft goals.

According to Microsoft’s press release on the matter, the company will invest its $3.3 billion dollars into the state over the next two years as it expands its national cloud AI infrastructure capacity. Microsoft will be placing what it considers a “state-of-the-art” data center campus in Mount Pleasant, Wisconsin that it expects to encourage the creation of 2,300 union supported construction jobs by next year.

Like its previous ‘Build With’ programs, Microsoft sees the Wisconsin data center as just the start of burgeoning partnership with the region that will have larger lasting implications such as a collaboration with Gateway Technical College to “build a Data Center Academy to train and certify more than 1,000 students in five years to work in the new data center and IT sector jobs created in the area.”

In addition, Microsoft will also be establishing a manufacturing driven AI Co-Innovation Lab at the University of Wisconsin-Milwaukee. According to Microsoft the university lab could serve up to 270 Wisconsin-based businesses by 2030 as well helping to expand ongoing partnership with the Green Bay Packers.

Lastly, Microsoft has also committed to partnering with Gateway Technica College to help train and certify 3,000 local AI software developers while also seeking to provide ‘opportunities’ for 1,000 local business, civic and government leaders to join bootcamps to figure out ways to adopt AI into their enterprises.

However, back in 2017 Foxconn made similar lofty promises that ultimately unfulfilled by both the company and then President Donald Trump. The Taiwanese based company was supposed to help invigorate Wisconsin’s economy and innovation hubs with a massive factory project intended to build LCD screens.

Described as being potentially the “eighth wonder of the world,” the Foxconn plant sat unused for years while the company trotted out recycled marketing material to pivot the focus of its underdevelopment ever so often.

In August 2023 Foxconn placed its unused factories up for sale and it seems Microsoft is taking advantage of the opportunity.

Unlike Foxconn, whose factory project appeared to be more of a politically motivated marketing gimmick, Microsoft’s massive bet on AI requires the company to continue to seize locations for the datacenters that will house server farms to power its future revenue streams.