Microsoft has temporarily halted construction on the second phase of its planned $3.3 billion AI and cloud computing data center in Racine County, Wisconsin. The company confirmed that work on the first phase, announced in May 2024, remains “fully on track.”
The pause on the second phase is attributed to Microsoft’s evaluation of “recent changes in technology” and their potential impact on the project. The tech giant stated that it will require discussions with local and state authorities to update plans and permits, a process expected to take several months.
Despite the delay, Microsoft emphasized that supplementary projects, including an AI co-innovation lab at the University of Wisconsin–Milwaukee, will proceed as planned.
The 130-hectare site, acquired by Microsoft in 2023 for $50 million, was previously designated for a Foxconn chip factory, once celebrated by the Trump administration as the “eighth wonder of the world.”
In addition to its Wisconsin development, Microsoft recently revealed plans to construct a data center using sustainable cross-laminated timber in northern Virginia, showcasing its commitment to integrating innovative construction techniques with cutting-edge AI technologies.
This pause highlights how rapidly evolving AI advancements are reshaping construction strategies in the tech industry.
