
Understanding Microsoft datacenters in Racine County

Microsoft in your community
We believe that companies that can do more, should. That’s why we remain focused on key areas in which technology can and must benefit the future of humanity and our planet. We aim to build and operate digital infrastructure that addresses community challenges and creates local benefits where we operate and where our employees live and work.
What can a datacenter mean for Wisconsin? Iowa’s experience offers insight
Watch our video to hear from local leaders in West Des Moines, Iowa as they share their experiences.
Project overview
Microsoft is proposing a datacenter project in the Village of Caledonia. The project is currently in the initial phase of the planning and development process.
Why datacenters are needed
Datacenters provide the physical infrastructure for the technology we depend on at work and in our personal lives. Whenever you open an app on your phone, join a virtual classroom or meeting, snap and save photos, or play a game with your friends online, you are using a datacenter. Local businesses, government, hospitals, and schools rely on datacenters every day to deliver goods and services to you.
October 10th, 2025, Village of Caledonia datacenter project update
Earlier this year, we shared plans to explore a potential datacenter site in the Village of Caledonia. Part of our commitment to be a good neighbor is taking the time to listen to community feedback, and we appreciate the perspectives shared over the past several months.
While we have decided not to proceed with this particular site, we remain fully committed to investing in Southeast Wisconsin. We view this as a healthy step toward building a project that aligns with community priorities and supports shared goals.
We look forward to continuing our work with the Village of Caledonia and Racine County leaders to identify a site that supports both community priorities and our long-term development objectives.
We will continue to share updates on this page as they become available.
September 24th, 2025 neighborhood information meeting recap
The Village of Caledonia hosted a neighborhood information meeting about the planned Caledonia datacenter project on September 24th, 2025. The project is in the planning and rezoning stage.
Microsoft appreciated the opportunity to talk with community members that participated in the meeting and visited stations to talk with subject matter experts. The meeting stations focused on an overview of datacenters, the current plan for the Caledonia datacenter project (for example, concept plan, water, energy), next steps in Microsoft’s process, and Microsoft’s partnerships in the Racine County community. If you were unable to attend the neighborhood information meeting, you can also view the boards shown at the meeting.
Microsoft also shared fact sheets on:
- Datacenter FAQs
- Responsible water use
- Lighting our datacenters
- Minimizing noise at our datacenter operations
- Blending innovation and sustainability into datacenters using biomimicry
- Understanding Microsoft datacenter jobs in your community
- WE Energy powering growth
In addition, Racine County Economic Development Corp., Microsoft, and Dewberry presented at the Village of Caledonia board meeting on September 23rd, 2025.
If you were unable to attend, you can view the presentation online.

Strengthening Wisconsin as a hub for AI innovation
In May 2024, Microsoft announced a broad investment package designed to strengthen the role of Southeast Wisconsin as a hub for AI-powered economic activity, innovation, and job creation. These investments include $3.3 billion in cloud computing and AI infrastructure, the creation of the country’s first manufacturing-focused AI co-innovation lab, and an AI skilling initiative to equip more than 100,000 of the state’s residents with essential AI skills. Learn more about Microsoft’s AI investments in Wisconsin

Restoring watershed corridors in southeastern Wisconsin
Root-Pike Watershed Initiative Network (WIN) and Microsoft joined forces to restore prairie and wetland habitats in Racine County: Cliffside Park along the shores of Lake Michigan and Lamparek Creek in Mount Pleasant, Wisconsin. In September 2023, the Root-Pike WIN team kicked off wetland restoration at Cliffside Park. The restoration approach recreated open-water refuge and enhanced native flora to encourage migratory bird stopovers, boost pollinator foraging, and reduce sheet runoff to the eroding Lake Michigan Bluffs. Learn more about the watershed restoration projects in Wisconsin

Setting a national model for inclusive economic growth
The success of Microsoft TechSpark in Wisconsin in addressing the digital divide and promoting inclusive economic growth catalyzed local societal change. This has resulted in a more engaged community, demonstrating the power of technology, knowledge, resources, and support in solving local challenges. TechSpark helped upskill individuals and address the shortage of talent in the state. Learn more about the success of Microsoft TechSpark in Wisconsin