Microsoft closes land deal for billion-dollar data center construction

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Mount Pleasant officials on Thursday announced Microsoft has closed on the purchase of more than 1,000 additional acres of land to construction billion-dollar data centers in the area.

The tech giant closed on a $63.2 million purchase for 400 acres near Braun Road, revenue department records showed. It also paid $36.4 million for 241 acres on County Highway H.

Microsoft bought both parcels from Mount Pleasant and the land was part of the village’s Tax Incremental District (TID) No. 5, according to officials.

The company also bought 407 acres from Creuziger Farms for $76 million, state records showed.

With the new acquisitions, Microsoft now owns a total of 1,345 acres in Mount Pleasant, making it the largest landowner in the district.

“Solidifying this expanded partnership with Microsoft offers an incredible growth opportunity for our community,” Racine County Executive Jonathan Delagrave said in a statement.

“I’m grateful to have this world-class company as a partner and I look forward to the opportunities this partnership will bring to Racine County residents,” he added.

David DeGroot, the village president of Mount Pleasant, called Microsoft’s transformation of village land “a win for taxpayers and residents alike.”

In March, Microsoft announced plans to invest over $1 billion in TID No. 5 by 2028. Construction on part of a large data center campus had already broken ground on a 315-acre parcel purchased earlier.

The new purchases will allow Microsoft to build additional data centers over the next decade. The company expects to pour billions more into buildings, infrastructure and equipment on the land.

The billion-dollar investment was among the largest single private sector investments in state history, according to a village spokesperson. Microsoft’s interest would help Wisconsin “firmly plant its flag in the digital economy of the 21st century,” they added.

In 2017, state and local government designed 3,000 acres in Mount Pleasant for Taiwan-based Foxconn to build a megaproject site. The company spent around a billion in capital investments but struggled to grow. Foxconn will suspend its development operations in the areas Microsoft purchased, per the agreement.