Ricardo Torres
Developments have total estimated value of $13.3 billion
Microsoft Corp. is planning a massive expansion of its Mount Pleasant operations by adding 15 more data centers and other buildings – totaling over 8.7 million square feet and generating tens of millions of dollars in annual property tax revenue.
That's according to two new proposals filed with the village Plan Commission. It's scheduled to meet on Jan. 21 at 1 p.m.
Both developments would be on property initially planned for Foxconn Technology Group.
In a statement, a Microsoft spokesperson said:
"Microsoft has proposed an expansion in Mount Pleasant, with plans submitted for two additional datacenter campuses on land we purchased in 2024.
"These preliminary plans are the next step in our years-long development process and we look forward to sharing more about our specific plans as we go forward as we've done for our first two sites in May 2024 and September of 2025 respectively."
One development, planned for Durand Avenue, would build up to nine data centers with additional office space, each up to 579,796 square feet. The proposal also includes a 96,000-square-foot office and storage building, and other accessory buildings.
It brings that portion of the expansion to 5.2 million square feet on 791 acres, which village staff is recommending the Plan Commission approve.
That development is estimated to be worth more than $7.97 billion, the staff report says.
The project is occurring in a tax incremental financing district. That means its property tax revenue will help pay for roads, sewers and other public improvements within the district.
After that debt is paid off, the development could generate more than $45.2 million in annual property tax revenue for the village, the report says.
The other development is planned for International Drive and includes six data centers and additional office space, each up to 568,103 square feet. The proposal includes a 74,000-square-foot office and storage building, and other accessory buildings.
That proposal, also being recommended for approval, totals 3.5 million square feet on 530 acres.
The International Drive development has an estimated value of more than $5.33 billion.
It could generate up to $30.8 million in annual property tax revenue for the village after the tax financing district debt is paid off. Property tax revenue also would flow to Racine Unified School District, Racine County and other local governments.
Village staff does have conditions to the proposals which include meeting architectural, lighting, parking and other modifications.
Also, Microsoft must "comply with all Racine Water Utility, Mount Pleasant Sanitary Sewer Utility, and Wisconsin Department of Natural Resources rules and permissions regarding consuming and returning water to the applicable utility systems and watersheds," the staff report says.
There are also plans for three electrical substations planned for these developments to help power the facilities once the project is completed.
Microsoft continues momentum from 2025
Microsoft is finishing up its first data center in Mount Pleasant and is planning to break ground on a second data center this year.
The company is on track to be Racine County's largest taxpayer when it pays its bills in 2026, based on 2025 assessments.
Microsoft President Brad Smith is urging more transparency with data center and artificial intelligence developments in the technology sector in comments Smith made during a Jan. 13 visit to Milwaukee.
“I think we’re at a cultural pivot point because to bring people along, to get comfortable being more transparent, to be comfortable having conversations about questions to which we don’t yet know the answer – requires a different approach,” Smith said.
BizTimes was first to report about the Microsoft proposals.
(This story was updated to add new information.)
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