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MOUNT PLEASANT, WIS. — Microsoft Corp. has announced plans to purchase a 315-acre parcel of land in Mount Pleasant for a $1 billion data center campus.

The purchase aims to create a data center campus. The Village of Mount Pleasant, Racine County, Racine County Economic Development Corporation, Wisconsin Economic Development Corporation, and Milwaukee 7 penned the agreement with Microsoft.

The Mount Pleasant Village Board will consider the proposed development on March 30, 2023, and the Racine County Board at its April 11 and April 18 meetings.

“Microsoft was attracted to this location because it is primed for development,” said Village of Mount Pleasant President David DeGroot. “Through local investments, we have transformed this area of Mount Pleasant and equipped it with the infrastructure necessary to support a major investment by Microsoft.”

If approved, the project would be located in the Electronics and Information Technology Manufacturing Zone. Microsoft officials want to purchase the land from the Village of Mount Pleasant and develop all of the land south of Braun Road, north of County Highway KR, east of the Canadian Pacific Rail right-of-way, and west of 90th Street in TID 5.

In an accompanying document provided by the Village, the agreement does not lessen Foxconn’s obligations or provide them any new benefits.

“The collaboration with Microsoft and local government demonstrates Foxconn’s partnership with others to further the goals and intentions of creating a science and technology hub,” according to a spokesperson from Foxconn Technology Group.

“As a result of Foxconn’s presence, Mount Pleasant has undergone a transformation of infrastructure that continues to support potential business cases for additional Foxconn production.

In Wisconsin, Foxconn has invested over $1 billion, manufactures data servers for tier-1 customers, remains committed to driving its ongoing business operations and is committed to finding new opportunities in response to market demand.”

However, pending approvals, site readiness work could start later this year.

“Microsoft joins a roster of innovative, world-class companies that are choosing to grow in Wisconsin because of our highly educated workforce, outstanding infrastructure, central location, and unparalleled quality of life,” said Missy Hughes, secretary and CEO of the Wisconsin Economic Development Corporation (WEDC). “We look forward to working with them to ensure they succeed.”

The Village of Mount Pleasant is a fast-growing community in Wisconsin, known for its strategic location between metropolitan Milwaukee and Chicago. The village has several businesses, such as Case New Holland, Badger Meter, Foxconn and SC Johnson.

“This respected, innovative company will be an incredible addition to the regional and state economy,” said Gale Klappa, co-chair of Milwaukee 7 and executive chairman of WEC Energy Group.

The purchase is part of a multi-year process that required unprecedented coordination between local and statewide governments and agencies to transform more than 2,500 acres in the heart of the Village of Mount Pleasant into a shovel-ready area for high-level development appropriate for the Electronics and Information Technology Manufacturing Zone.

“Our first commitment is always to local taxpayers,” said Claude Lois, Project Director for the Village of Mount Pleasant. “That will be the case as we move forward with Microsoft.”

What’s in the development agreement

According to village documents, Microsoft Corporation is entering into a development agreement with the Village of Mount Pleasant and Racine County related to this development.

If approved, the development agreement outlines the following:
• Microsoft will construct a data center campus at a cost of more than $1 billion on the land it purchases in TID 5. Construction is anticipated to commence:
▫ Phase 1: not later than July 1, 2026
▫ Phase 2: not later than July 1, 2033

• Microsoft will be eligible to earn back some of its investment as it builds buildings:
▫ Payments are contingent on the Village having received sufficient Tax Increment Revenue to have first paid all other TID obligations.
▫ Microsoft may recoup 42% of the annual incremental property taxes it pays on the improvements it builds, not to exceed $5 million per year for the duration of the agreement and the district.

• The Village and County have the option to repurchase the land being sold to Microsoft, at Microsoft’s original per-acre price, if Microsoft fails to commence constructing buildings by the stated deadlines.

Implementation agreement

An Agreement between the Village of Mount Pleasant, Racine County and Foxconn to enable the Microsoft project in TID 5.

• The Agreement does not lessen any of Foxconn’s obligations under its development agreement. The Agreement does not provide Foxconn any new benefits.

• Just as existing municipal debt agreements pledge all TID 5 tax increments to pay down existing debt, the Agreement allocates new increment to be generated by Microsoft’s land purchase and development to pay down the prorated share of TID costs allocated to that area (12%).

• Foxconn releases all rights to the 315 acres of land in TID 5 that will be sold to Microsoft and consents to a Transmission Line easement on other land over which Foxconn retains acquisition rights.

• Foxconn will receive the proceeds from the Microsoft land sale (net of costs) as partial reimbursement of the funds Foxconn advanced in 2017 to acquire lands in TID 5.


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Denise Lockwood has an extensive background in traditional and non-traditional media. She has written for, the Milwaukee Business Journal, Milwaukee Magazine and the Kenosha News.

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