Who deserves the credit for Microsoft’s decision to build a $3.3 billion artificial intelligence data center in Mount Pleasant?
That’s been a hot political topic since President Joe Biden flew here to tout the Microsoft project and criticize former President Donald Trump’s support of the Foxconn project.
Microsoft is building the data center complex on land originally set aside for Foxconn, which initially said it would build a $10 billion LCD screen manufacturing complex that would create 13,000 jobs.
The Foxconn project didn’t live up to the hype and has become a whipping boy for critics of its supporters, including Trump and former Gov. Scott Walker.
Foxconn has a substantial operation in Mount Pleasant with 1,000 employees. Most of its work there has been to build data servers for a client it hasn’t named, but has been reported to be Google. That would’ve been considered a major success story if not for the overhyped initial plans.
Walker and the Republican-controlled Legislature approved $2.85 million in tax incentives for Foxconn, contingent on job creation and capital investment. Gov. Tony Evers renegotiated the deal with Foxconn, providing smaller incentives that would be easier for the company to obtain. Last year Foxconn was eligible for $6.3 million in tax credits.
Foxconn’s smaller development has left room for Microsoft to come in. Microsoft purchased more than 1,300 acres in Mount Pleasant, most of it available because it was acquired and cleared for Foxconn. It’s also attractive for development because of a massive investment by the state, local governments and We Energies in infrastructure improvements. Those improvements were intended to serve Foxconn, but are now a major reason for attracting Microsoft.
“Without Walker taking the big swing on Foxconn, Microsoft never happens,” said Steve Baas, executive director of the Wisconsin Transportation Builders Association. “Microsoft is here because the infrastructure – roads, utilities, etc. – are already in place; the land is all purchased and available for Microsoft to buy; and the politics have already been navigated. This is a plug-and-play development for Microsoft and Tony Evers and Joe Biden, because of the groundwork laid by Scott Walker and Donald Trump.”
The Milwaukee 7 regional economic development group and Racine County Economic Development Corp. have remained aggressive in trying to attract a transformative development to the site.
Republicans were quick to say that Biden had nothing to do with Microsoft’s plans for Mount Pleasant. There is indeed no direct federal role in the project.
However, Microsoft president Brad Smith praised Biden for the Infrastructure Investment and Jobs Act, the CHIPS and Science Act and the Inflation Reduction Act.
“Everything that we are doing here in Racine County is benefitting directly from the work of this White House and this president,” said Smith, who also praised local officials and recognized Evers for doing “the things that needed to be done to make this happen.”
