MILWAUKEE — Microsoft is expanding its footprint across Mount Pleasant with plans to build a massive data center complex worth billions of dollars. The tech giant plans to acquire more than 1,000 acres of land in Racine County, potentially setting up a decade of construction on land previously set aside for Foxconn.
On Friday, the village of Mount Pleasant and Racine County announced Microsoft’s plans to buy 1,030 acres in the Mount Pleasant Tax Incremental District (TID) No. 5. Both local governments will decide to approve the deal in the coming months before the purchase is final.
“We are focused on bringing benefits to the community through our investments in our datacenters through partnerships with local organizations,” said Bo Wallace, Microsoft’s corporate vice president in American data centers.
Announcing the deal alongside Mount Pleasant and Racine County were the Racine County Economic Development Corp. and economic development agency Milwaukee 7.
In March, Microsoft announced it planned to invest more than $1.4 billion into 315 acres of Areas II and III of the tax increment district by 2028. That’s in addition to the $1.4 billion Foxconn guaranteed in Area I.
Foxconn will also relinquish its development options in Areas II and III in TID No. 5. Walsh Construction broke ground in September.
The company hasn’t formally announced how the land will be used or how many jobs it would create, but officials said in a news release Microsoft anticipates investing billions of dollars over the next decade in buildings, support structures, systems and equipment.
Microsoft will have more than 1,300 acres after the deal with village and Racine County
If approved by the village and Racine County, Microsoft will purchase around 630 acres from Areas II and III in Mount Pleasant, officials said. The company will buy the remaining acres from a private landowner, officials added.
After the purchase, Microsoft will own 1,345 acres in Mount Pleasant, including the 315 acres the company bought from Mount Pleasant in May, officials said. This will make the tech giant the largest landowner in TID No. 5, officials added.
In 2017, the state and local government designated 3,000 areas of village space into a megaproject site, dubbed the Wisconsin Innovation Park, officials said. Foxconn, a tech company headquarters in Taiwan, spent more than $1 billion in capital investments to set up a campus in Area I of TID No. 5. The company employs around 1,000 people in Wisconsin, officials added.
The Mount Pleasant Village Board will meet on Nov. 27 to decide on the land purchase and development agreement, and the Racine County Board will consider the agreements on Nov. 28, officials said. The land transfers could take place by the end of the year depending on the approval process.
Gov. Tony Evers said in a statement the state was “thrilled” to see Microsoft settle in southeast Wisconsin.
“Microsoft’s injection of billions of dollars to expand its operations in Mount Pleasant will have a positive impact that will be felt in the region and across our state for years, and I cannot wait for this partnership to continue to strengthen and develop as this effort moves forward,” Evers added.
Data centers are essentially warehouses for data and applications for companies. They may store components such as switches, routers, servers and storage systems. Microsoft operates around 200 datacenters across the world.