Microsoft will build a $1 billion data center in Mount Pleasant. Here's what we know about it.
State and local leaders are hailing Microsoft's decision to build a $1 billion data center in Mount Pleasant as an important next step in the development of the massive business park that was created to bring Foxconn Technology Group to the village in 2018.
Microsoft received approval last week to buy a 315-acre site east of Foxconn for $50 million.
Foxconn has failed to meet expectations since work started in 2018 on what was initially touted as a LCD manufacturing plant that would employ up to 13,000 people. Those plans have been dramatically scaled down and employment is about 1,500 workers.
Foxconn also bought with it the hope that the high profile development of a tech-ready business park would draw other technology in what officials hope is the first step in the continued development of the business park.
What's the construction timetable for the Microsoft data center?
The sale of the 315-acre parcel for $50 million is expected to close on or before July 31.
It's unclear how soon after that the company might begin construction.
The sale of the land allows Microsoft to begin planning and design work, which will need to be reviewed by the village and several state agencies.
Under the terms of the sale, Microsoft must start construction on a first phase no later than July 2026, although indications are that it could start well before then. The second phase of construction must start no later than July 2032.
How many people will the data center employ?
Paul Englis, Microsoft's global director for community research and engagement, said Microsoft's data centers typically employ 300-400 people.
He said it is too early to say how many Microsoft employees would work in Mount Pleasant, but when asked about a minimum number he said he "would be surprise if it was anything less than 100."
What, exactly, is a data center?
Each data center is a key internet hub with thousands of servers supporting cloud computing services.
Microsoft has about 200 of them in more than 30 countries. The company's data center customers in southeastern Wisconsin include Fiserv, Rockwell Automation and Kohler Co.
"Data centers really are the heart and soul of today's technology world," Englis said.
What attracted Microsoft to Mount Pleasant?
Englis told the county board the Mount Pleasant site "checked all the boxes" for a Microsoft data center including being development ready with available broadband and electric infrastructure and having a skilled workforce available not just to staff the data center, but also to build it.
Does Microsoft already have ties to Wisconsin?
It certainly does, beginning with President Brad Smith, who was born in Milwaukee and graduated from Appleton West High School.
In 2017, Smith and Microsoft chose northeast Wisconsin as one of six pilot locations for its Techspark initiative to spur technology development, education and access across the country.
Microsoft is also a partner with the Green Bay Packers in TitletownTech, a business support iniative started in 2019 to provide venture capital and business development resources to technology entrepreneurs.
In 2021, Milwaukee was chosen as one of eight cities where Microsoft would pilot a program to bring low-cost internet service to urban residents.
More: From Appleton teen to Microsoft president, Brad Smith draws support, values from Wisconsin childhood
How does the land sale affect Foxconn?
As a precursor to the sale, Foxconn agreed to relinquish its option to buy the 315-acre parcel.
Proceeds from the sale will be paid to Foxconn to partially reimburse the company for the $60 million it provided to help acquire land for the business park.
However, the land sale will not change Foxconn's obligation to pay property taxes or make-up payments based on the $1.4 billion value of the land it controls in the business park, village officials said.
Why are state and local leaders excited about this project?
It's not just the annual tax revenue that will help pay off the debt the village took on to create the business park.
They're hoping the Microsoft development will further raise the profile of the 3,000-acre park and help attract additional businesses.
Last week, Englis told the county board that's exactly what happened after Microsoft opened data centers in other cities, including Des Moines and Quincy, Washington, where other data centers and tech companies moved into the area after Microsoft arrived.
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This article originally appeared on Milwaukee Journal Sentinel: What we know about Microsoft's data center near Foxconn in Mount Pleasant
