Microsoft buys 240 acres from Kenosha with data center development in mind

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Microsoft bought 240 acres of land from Kenosha with goals for future data center development.

The state of Wisconsin and the city of Kenosha on Monday announced the sale of farmland northwest of Interstate 94 and Highway 142 to Microsoft. In December the city passed ordinances to attach and rezone the property for future data center development. It wasn’t immediately clear how much Microsoft paid for the property. City officials said the tech giant hasn’t finalized project plans or timeline.

“In Wisconsin, we’re continuing our work to harness AI, advance critical sectors like manufacturing, biohealth and technology and adapt to make sure our workforce, economy and state can meet the demands of the 21s century,” Gov. Tony Evers said in a statement. “We’re excited about Microsoft’s decision to continue investing in the southeastern part of our state, which I’m proud has been a key focus for our economic support, development and growth efforts,” he added.

“This announcement is the latest example of our commitment to the people of Wisconsin, and our investments, which are designed to strengthen the role of Southeast Wisconsin as a hub for AI-powered economic activity, innovation, and job creation,” a Microsoft spokesperson said in a statement. “This announcement builds on Wisconsin’s heritage of business innovation and Microsoft’s history of investment in the state,” they added.

In November, the Kenosha City Plan Commission approved annexing land at the northeast corner of 136th Avenue and Burlington Road. Plans called for 250,000-square-foot data center buildings and a utility substation, a city agenda showed.

David Bogdala, mayor of the city of Kenosha, said the sale was a “transformative moment” for the city.

“This groundbreaking investment solidifies Kenosha’s position as a hub for innovation and economic growth,” Bogdala said in a statement. “Opportunities created by development of this land – from job creation to strengthening our local economy – will resonate for generations to come. We are honored to work with Microsoft and look forward to future opportunities to collaborate, including joint research initiatives, talent development programs and community engagement activities,” he added.

“It’s exciting to welcome another world-class company to Kenosha County — the Gateway to Wisconsin,” said Samantha Kerkman, Kenosha County Executive, in a statement. “This significant investment by Microsoft will have a major economic impact on our area, further growing our tax base and diversifying our economy. I’m proud to add Microsoft to the growing list of companies from around the world that are choosing to do business here,” she added.

Microsoft is currently working on a $3.3 billion data center in Mount Pleasant. The effort was announced in May 2024 and the tech giant has been purchasing acres and building on sites formerly set aside for Foxconn.

In December, news broke that some construction work paused at the Mount Pleasant site as Microsoft redefined some of its building plans. A Microsoft official said the Kenosha purchase was an addition to the project in Mount Pleasant, but had no connection to the design changes on the second phase of expansion in Racine County.

“We are thrilled to welcome Microsoft to Kenosha County and add one of the largest tech companies in the world to our roster of major international corporations,” said Nicole Ryf, president of the Kenosha Area Business Alliance. “Microsoft’s investment signals that the Chicago-Milwaukee corridor is gaining international attention for its strategic location, productive workforce, strong infrastructure and pro-business climate and Kenosha County is fortunate to be in the heart of it all,” she added.

Kenosha County has seen a bundle of projects big and small recently, including a proposal for a $300 million We Energies natural gas plant and Eli Lilly’s $3 billion investment in a new medical manufacturing center.

“We’re delighted that Microsoft continues to expand its commitment to the Milwaukee region,” said Gale Klappa, co-chair of Milwaukee 7 and chairman of the board of WEC Energy Group. “This additional investment – announced today – speaks volumes about our region as a home for innovative companies and a dynamic hub for advancement in technology,” he added.