Microsoft halts construction on portions of the $3.3B Mount Pleasant campus

Microsoft

MOUNT PLEASANT, Wis. (CBS 58) -- Microsoft has halted construction on aspects of its multibillion-dollar data center in Mount Pleasant.

But it's unclear why.

The company told CBS 58 they are "fully on track" with construction on the $3.3 billion data center set to open in 2026, but said work has stopped on two expansion sites.

"We have expansion sites in Mount Pleasant where we intend to build additional infrastructure, and we’ve already done preliminary work for those future builds," a Microsoft spokesperson said.

A source familiar with the project said it's "not abnormal" for these pauses to occur, adding it's unrelated to the economic uncertainty many companies are facing due to the Trump administration's trade wars.

Microsoft’s footprint in Mount Pleasant includes three separate sites. The first phase to build an artificial intelligence data center began in January of 2024, when the company broke ground. That portion is still scheduled to open by the end of 2026.

Construction in two other areas have been paused.

The announcement comes after the tech giant halted construction earlier this year to "review plans for future phases of the project," according to Wisconsin Public Radio.

“We have paused early construction work for this second phase while we evaluate scope and recent changes in technology and consider how this might impact the design of our facilities,” a Microsoft spokesperson said in January.

The company did respond to questions about whether the two separate pauses are related.

Sean Ryan, a spokesperson for the Village of Mount Pleasant, said local officials "look forward to continuing to partner with Microsoft on future expansion projects within the Village."

The company said they are still on pace to spend $3.3 billion on the project and officials maintained expanding their infrastructure will continue.

Since reaching a deal with local officials in 2023, the company has purchased more than 1,900 acres in Mount Pleasant. Microsoft pledged to bring more than 2,000 union construction jobs to southeast Wisconsin by 2025.

In May, President Joe Biden visited Racine County to tout the artificial intelligence data center, contrasting it with the unfulfilled promise of Foxconn.

Microsoft took over the troubled Foxconn site that was supposed to build a LED factory. The Taiwanese manufacturer had an initial promise of bringing 13,000 jobs to southeast Wisconsin and billions in economic development.

That deal failed to fully develop after President Donald Trump promised back in 2018 Foxconn would become the "eighth wonder of the world" during his first administration.

Foxconn officials say they now employ more than 1,000 people and are building technology in the village.

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