Microsoft plans to create a $1 billion data center campus on Foxconn land

Recent aerial photo of the Foxconn campus in Mount Pleasant. Shot by Curtis Waltz of

Last updated on March 29th, 2023 at 12:56 pm

Microsoft is planning to build a new data center campus in the village of Mount Pleasant, located on a 315-acre parcel of land in Foxconn territory. Microsoft plans on buying the land for more than $50 million.

The village, Racine County, Milwaukee 7 and Racine County Economic Development Corporation announced Monday afternoon Microsoft has agreed to purchase the land located in the east section of Area III, within the village’s Tax Increment District No. 5. The parcel of land runs along Braun Road in the village of Mount Pleasant, north of Highway KR, east of the Canadian Pacific Rail right-of-way , and west of 90th Street.

Microsoft will develop a $1 billion data center pending approvals from the Mount Pleasant Village Board and the Racine County Board.

“Microsoft was attracted to this location because it is primed for development,” said village of Mount Pleasant president David DeGroot. “Through local investments, we have transformed this area of Mount Pleasant and equipped it with the infrastructure necessary to support a major investment by Microsoft.”

A news release from village officials states there will be two phases of construction – the first beginning no later than July 1, 2026 and the second beginning no later than July 1, 2033.

Microsoft will be eligible to earn back some of its investment as it constructs buildings. The company may recoup 42% of the annual incremental property taxes it pays on the improvements it builds, not to exceed $5 million per year for the duration of the agreement and the district.

Payments are contingent on the village having received sufficient tax increment revenue to have first paid all other TID obligations. The village and the county have the option to repurchase the land being sold to Microsoft at the original per-acre price if Microsoft fails to start construction by the aforementioned deadlines.

“The agreement does not lessen any of Foxconn’s obligations under its development agreement,” according to the news release. “The agreement does not provide Foxconn any new benefits.”

Foxconn will release all rights to the 315 acres of land in TID 5 that will be sold to Microsoft.

“Village, county and state officials planned for a long-term future to accommodate development and investment by a variety of companies,” said Jonathan Delagrave, Racine county executive. “We have presented a tremendous opportunity for companies, like Microsoft, to invest.”

In a statement issued Monday, Foxconn Technology Group said its decision to sell the land shows the company’s commitment to furthering science and technology efforts in the region.

“The collaboration with Microsoft and local government demonstrates Foxconn’s partnership with others to further the goals and intentions of creating a science and technology hub,” reads the statement. “As a result of Foxconn’s presence, Mount Pleasant has undergone a transformation of infrastructure that continues to support potential business cases for additional Foxconn production. In Wisconsin, Foxconn has invested over $1 billion, manufactures data servers for tier-1 customers, remains committed to driving its ongoing business operations and is committed to finding new opportunities in response to market demand.”

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Ashley covers startups, technology and manufacturing for BizTimes. She was previously the managing editor of the News Graphic and Washington County Daily News. In past reporting roles, covering education at The Waukesha Freeman, she received several WNA awards. She is a UWM graduate. In her free time, Ashley enjoys watching independent films, tackling a new recipe in the kitchen and reading a good book.

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