Microsoft buys land for Kenosha data center: Lots of excitement, few details
KENOSHA, Wis. (CBS 58) -- Business and political leaders announced Monday Microsoft is buying a large piece of land with the intention of building a data center in Kenosha County.
According to a joint release from city, county and business leaders, Microsoft is buying 240 acres of property northwest of where I-94 and State Highway 142 intersect.
The area is currently best known for the Mars Cheese Castle, which is at the southwest corner of the intersection. As part of a long-term development plan, the city of Kenosha will annex the land.
The announcement wasn't a surprise; Kenosha rezoned the land last month so it could accommodate a data center. Mayor David Bogdala said the city was making a dedicated effort to attract more tech businesses in a city long known for its manufacturing.
"We have been very focused on innovation, technology -- looking at where that's going and embracing that," Bogdala said. "And to have Microsoft as a partner in that is just phenomenal for our city long-term."
Bogdala said he believed the city's proximity to Lake Michigan played a large role in Microsoft's decision to target property there.
"People are attracted to the location," he said. "They're attracted to the natural resource we have here and the availability of that."
In other parts of the country, there have been concerns about the volume of water data centers require to keep the massive computer systems cool. There have also been questions about the water rates companies pay relative to residential customers.
Bogdala said it was too early in the process to know what will be required to pump enough water to the Kenosha data center site.
"I think as we work through this process, and Microsoft will have more announcements, I'm sure, as this progresses, we'll work through all of that," he said. "And I'm confident we'll have a positive result."
Microsoft in 2023 initially bought 315 acres to build a data center in Mount Pleasant. The company then bought 600 more acres later in the year. According to multiple reports, work on that project has paused as the company re-evaluates the design of that data center.
A Microsoft spokesman said they were looking into several questions CBS 58 asked Monday, including an update on the Mount Pleasant project and an estimate on how many jobs the Kenosha project would generate.
Tuesday afternoon, a Microsoft spokesperson confirmed the land purchase in Kenosha.
"We can confirm that this announcement is the latest example of our commitment to the people of Wisconsin, and our investments," the Microsoft statement said. "Which are designed to strengthen the role of Southeast Wisconsin as a hub for AI-powered economic activity, innovation, and job creation."
The Microsoft spokesperson added the company is still on track to finish the first phase of the Mount Pleasant datacenter, which includes a pledge to spend $3.3 billion on the project by the end of 2026.
The company spokesperson also confirmed work has paused on the second phase of the project "while we evaluate scope and recent changes in technology and consider how this might impact the design of our facilities."
"It will then be important for us to discuss with the local and state authorities any impact these changes might have on our current or prospective permits," the spokesperson wrote. "We anticipate that this process will last months."
Nicole Ryf, president of the Kenosha Area Business Alliance, said in an email Monday she'd worked with data centers in her previous stops. Ryf said she was confident Microsoft's presence would benefit other area institutions.
"I previously worked in Texas and Virginia, which have well-established data center ecosystems, and have witnessed first-hand the significant level of civic engagement and support from many companies in this industry," Ryf wrote. "Microsoft is already demonstrating their community engagement in a number of ways, including the training partnerships they previously announced with Gateway Technical College, UW-Milwaukee, and gener8tor.”
Monday's release did not include any type of timeline for what construction would look like. Bogdala said he did not have an estimate for how many jobs the project would create.
He added the city will have public hearings at various stages of the development, and that will provide an opportunity for Microsoft to present more details and for neighbors to ask questions.
Editor's Note: The article has been modified to include a statement from a Microsoft spokesperson, which CBS 58 received Tuesday afternoon after the story ran Monday night.