Wisconsin

A surge in AI is driving tech companies to rapidly expand data center infrastructure, meeting local resistance over economic impact and environmental concerns. Microsoft faced opposition in Caledonia, Wisconsin, leading to withdrawal of a rezoning application. Mount Pleasant, WI, however, welcomes Microsoft after a failed Foxconn project. Community engagement and addressing local worries are crucial, as seen in examples like Tucson, Arizona, and Indiana where data center proposals faltered. Despite challenges, hyperscalers continue aggressive expansion plans, seeking state incentives. Caledonia highlights the need for sustainable development and benefits.

Microsoft is investing $4 billion in a second Wisconsin data center, following a $3.3 billion initial commitment. The Mount Pleasant facility, equipped with Nvidia Blackwell GB200 GPUs, will support demanding AI workloads, addressing the growing demand for AI processing power. This expansion comes amidst a global scramble for cloud infrastructure driven by AI adoption. Microsoft aims to match energy consumption with carbon-free sources, including a 250-megawatt solar farm. The data centers’ power requirements exceed 900 megawatts, but Microsoft aims to avoid inflating local energy costs. Wisconsin is poised to become a major AI hub.