TLDR
- Microsoft expands Wisconsin investment to over $7 billion with second $4 billion data center in Mount Pleasant
- The two facilities will create world’s most advanced AI supercomputer using NVIDIA GPUs for training next-generation models
- Project generates 800 permanent jobs plus 3,000 construction roles, with partnerships for local workforce training
- Morgan Stanley maintains “Overweight” rating on MSFT stock after 10% dividend increase to $0.91 per share
- Investment revitalizes former Foxconn site, positioning Wisconsin as major AI infrastructure hub
Microsoft is making Wisconsin a cornerstone of its AI strategy with plans for a second $4 billion data center in Mount Pleasant. This brings the company’s total investment in the state to over $7 billion.
The tech giant already broke ground on its first $3.3 billion facility last year, set for completion by early 2026. The second data center will match this scale and timeline.
Together, these facilities will house what Microsoft calls the most advanced AI supercomputer in the world. The system will use NVIDIA GPUs to train cutting-edge AI models across multiple industries.
The Mount Pleasant location sits strategically between Chicago and Milwaukee in Racine County. This positioning gives Microsoft easy access to major metropolitan areas while taking advantage of Wisconsin’s infrastructure.
The project will create approximately 800 permanent positions when fully operational. Construction will provide up to 3,000 jobs during peak building phases.
Microsoft plans to hire electricians, maintenance specialists, and other technical roles for long-term operations. The company is working with local institutions to prepare Wisconsin workers for these opportunities.
Workforce Development Takes Center Stage
Gateway Technical College will host Wisconsin’s first Datacenter Academy under Microsoft’s guidance. The program focuses on hands-on training for data center operations and maintenance.
Microsoft is also partnering with the University of Wisconsin-Milwaukee to establish an AI Co-Innovation Lab. This facility will help local businesses integrate AI technologies into their operations.
The company is installing a closed-loop liquid cooling system to minimize water usage. This technology will handle 90% of cooling needs while using only restaurant-level amounts of water.
Microsoft will build new power infrastructure to meet the data centers’ energy demands. The company is simultaneously funding solar energy projects elsewhere in Wisconsin to balance environmental concerns.
Pre-paying electrical infrastructure costs ensures regional electricity rates won’t increase for local residents. This approach demonstrates Microsoft’s commitment to being a good neighbor in Wisconsin communities.
From Foxconn Failure to Microsoft Success
The Mount Pleasant site has an interesting history as the former location of Foxconn’s promised $10 billion factory. That project faced multiple setbacks before being scaled down significantly.
Microsoft’s investment breathes new life into the same land that once represented unfulfilled economic promises. The consistent execution contrasts sharply with Foxconn’s troubled timeline.
Both Republican and Democratic leaders have highlighted Racine County as crucial for American manufacturing and innovation. Microsoft’s follow-through provides the economic momentum that eluded previous development efforts.
Morgan Stanley recently reiterated its “Overweight” rating on Microsoft stock following a 10% dividend increase. The firm lifted its quarterly dividend by eight cents to $0.91 per share.
This dividend boost aligns with Microsoft’s historical pattern of annual increases between 8% and 11% over the past decade. The company maintains over $55 billion in current share repurchase authorization.
Microsoft held more than $90 billion in cash and short-term investments as of June 30, 2025. The company expects to generate over $70 billion in free cash flow during fiscal 2026.
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