Microsoft announces plans to expand on Racine Co. land once reserved for Foxconn

 

MOUNT PLEASANT, Wis. (CBS 58) -- Microsoft plans to invest billions of additional dollars in Wisconsin as it seeks to build more datacenters in Racine County, according to releases sent Friday by local economic development officials and Gov. Tony Evers.

The releases did not include a specific dollar amount; instead, they just said Microsoft was prepared to spend "billions" on top of the $1 billion investment the company announced in March.

The company's initial purchase was for 315 acres in the Wisconn Valley Science and Technology Park. Ground broke on that project in September, and crews could be seen working on the site Friday evening.

Microsoft now seeks to buy 1,030 additional acres, which would bring its total footprint to 1,345 acres and make it the largest landowner in the Tax Incremental District originally created for Taiwanese tech company, Foxconn.

Wisconsin's top legislator, Assembly Speaker Robin Vos (R-Rochester) said in a telephone interview Friday evening he hadn't gotten many details as to what Microsoft would be doing inside the growing datacenters.

"They have not gotten into specifics yet," Vos said. "I think that is still being worked out as they go through it, but my understanding is they are trying to put all the plans together, and then it'll be announced so that they don't give any advantage to their competitors."

Vos said the only assistance the state has given Microsoft for this project is adjustments to make some items the company would be purchasing to operate the datacenters exempt from the state sales tax.

According to Friday's release, Mount Pleasant would receive $100 million from the land sale. The village would use that money to pay off bonds issued to purchase the land, fund remaining infrastructure costs, pay off debt owed to Racine County and to secure municipal debt.

In a post on X, the social media site formerly known as Twitter, Evers celebrated Microsoft's stated plans to expand its eventual operations in Mount Pleasant.

"This move will bring significant benefits to both the local community and our entire state," Evers said.

CBS 58 reached out to Racine County Executive Jonathan Delagrave and the Racine County Economic Development Corporation, but neither returned messages Friday.

Most of the land Microsoft seeks to buy is currently owned by the village, although about 400 acres would come from a private landowner. 

The Wisconn Valley was constructed as part of the effort to land Foxconn, which in 2017, signed a contract with the state that included up to $2.85 billion in tax credits as the company pledged to build high-tech screens and employ as many as 13,000 people.

Currently, Foxconn has about 1,000 workers on its Mount Pleasant campus, and there's no indication the company is making screens. The contract for tax credits has since been downsized under the Evers administration. Foxconn is releasing its rights to the land Microsoft plans to buy from the village.

When asked if Microsoft was bailing out the state after Foxconn has failed to live up to its promises, Vos said he didn't think that was the case.

"No, the best thing about the Foxconn deal, as it was originally structured, is if they didn't hit their job targets, there really was no downside for the state," Vos said.

Vos added state leaders knew as negotiations went on under former Gov. Scott Walker that Foxconn had a history of underperforming, so they focused on tying tax credits to job creation and emphasized building infrastructure in the technology park, such as roads and utilities, the cost of which was mainly borne by local government.

"It didn't exactly work out perfectly with everything Foxconn promised, but the reality of what the locals put together has made us one of the most attractive sites in the nation and in the world," Vos said. "And Microsoft is obviously choosing wisely to be here in our state."

The Mount Pleasant Village Board will hear a presentation on the Microsoft proposal Monday, November 13, then the Racine County Board will receive that same presentation Tuesday, November 14.

Two weeks from those dates, the village and county boards are set to vote on approving the land sales, on the 27th and 28th, respectively.