Microsoft will open a $3.3 billion AI data center in Wisconsin
Microsoft has announced plans to bring its new Fairwater AI data center, touted as the “world’s most powerful,” online in early 2026. The $3.3 billion facility will rise on the site once promised to host Foxconn’s now infamous LCD factory project — a deal that fizzled almost as quickly as it was announced back in 2017.
At 1.2 million square feet spread across three buildings on 315 acres, the Fairwater data center is designed to be an AI powerhouse. Microsoft CEO Satya Nadella said the facility will contain “hundreds of thousands” of Nvidia’s GB200 GPUs, linked together by enough fiber optic cabling to circle the Earth 4.5 times. The company claims this computing cluster will be ten times more powerful than the fastest supercomputer in existence today, with the goal of dramatically accelerating the training of advanced AI models.
The Wisconsin build is part of a broader plan, with Microsoft confirming that additional Fairwater data centers are already under construction across the U.S.
Sustainability at the Forefront
Microsoft has been keen to highlight the project’s environmental footprint, a growing concern as AI infrastructure is criticized for its intense energy and water demands. According to the company, the Fairwater facility will employ a closed-loop cooling system that needs to be filled only once and then sealed, eliminating water evaporation and minimizing waste.
Brad Smith, Microsoft’s vice chair and president, emphasized sustainability in the announcement, underscoring the company’s effort to balance massive AI expansion with environmental responsibility.
A New Chapter for a Failed Site
The choice of location carries symbolic weight. The site was originally slated for a sprawling Foxconn LCD manufacturing hub, a deal that promised jobs and investment but collapsed within a year. Now, Microsoft is positioning Fairwater as a technological and economic revival of the land, aiming to redefine it as a hub of innovation rather than disappointment.
With AI competition heating up, Microsoft’s Fairwater initiative represents not just an engineering milestone but also a strategic signal: the race to dominate AI infrastructure is accelerating — and Wisconsin will play host to one of its most ambitious experiments.
