Ricardo Torres
Microsoft Corp. has pulled its plans for a Caledonia data center after opposition from area residents and elected officials.
"Based on the community feedback we heard, we have chosen not to move forward with this site," according to a Microsoft statement provided to the Milwaukee Journal Sentinel.
"We remain committed to investing in Southeast Wisconsin and look forward to working with the Village of Caledonia and Racine County leaders to identify a site that aligns with community priorities and our long-term development goals," the Oct. 8 statement said.
Microsoft is still planning a second data center in Mount Pleasant — where there's been little opposition.
A Microsoft spokesperson said it's possible a data center could be built in a different area of Caledonia or in a different part of Racine County. The change likely impacts the development timeline.
The Caledonia Plan Commission had recommended rezoning the data center site — 244 acres of farmland along Douglas Avenue and Botting Road, near the We Energies power plant in neighboring Oak Creek.
The Village Board was to consider the rezoning proposal on Oct. 14.
Microsoft change surprises critic
Village Trustee Fran Martin, a data center critic, was surprised about the change in plans.
“I commend Microsoft for listening to the community,” Martin said. “And for also addressing the concerns that the community had and that I had about that particular site.”
Martin has suggested the company build a data center along Interstate 94.
Racine County Executive Ralph Malicki said the county is committed to helping Microsoft find a location in Caledonia or somewhere in Racine County.
“We believe them to be an excellent partner and a good steward of our resources and whatnot in our community,” Malicki said.
Hope Otto, director of human services for Racine County, who spoke on behalf of Malicki at the Plan Commission meeting, said the majority of people who spoke at the meeting were against the project in that location.
“(Microsoft) has a high degree of social responsibility to the community that they’re investing in, so I think they heard the message that that location was not going to be a desired spot for them,” Otto said.
“And they want to make sure that they are respected and wanted in the areas in which they’re investing. And we’re committed to finding that for them and hopefully still in Caledonia.”
In a joint statement, the Racine Economic Development Corp. and Milwaukee 7 regional economic development organization said:
"We appreciate Microsoft’s collaboration in working with the Village of Caledonia, RCEDC and M7 to bring new development opportunities to the Racine County region.
"While Microsoft will no longer be considering the originally proposed site, we look forward to continuing our conversations and partnerships to strengthen our local economy and support the essential services that make Racine County and southeastern Wisconsin a great place to live and work."
Using AI to organize against Microsoft
Caledonia resident Chris Atkinson said the work isn't done for data center opponents.
“Regardless of people’s national politics, locally, people have been able to unify and find a common objective that they're working together to achieve,” Atkinson said. “The fight is not over.”
Atkinson helps run the website nodata.center which pushed against the Caledonia project and could be a model for other communities.
“I think I’m going to use that one going forward to help other people in the country rally and maybe create a unified plan,” Atkinson said. “Without the strategic plan that was implemented under a common directive, you don’t win against giants like Microsoft.”
Nodata.center includes these notes: “Developed using Gemini AI deep research and Grok 4 deep research. All facts sourced from public documents and news reports.”
The Caledonia data center was planning to assist Microsoft’s AI operations in Mount Pleasant.
“That’s hilarious and yeah, definitely the definition of irony,” Atkinson said about the notes. “You can leverage AI to do deeper searches and connect dots that no human mind can ever do.”
Microsoft's decision was announced one day after hundreds of people attended a Port Washington Common Council meeting to oppose a data center planned for that community.
The council on Aug. 19 unanimously approved a development agreement with that data center's operator, Denver-based Vantage.
The agreement covers a new tax incremental financing district that would reimburse Vantage for fronting $175 million in infrastructure improvements and other project costs. The financing district funds would come from property tax revenue generated by the data center.
(This story was updated with new information).
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