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.

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.

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
• Video: Understanding Microsoft’s 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.

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.

What can a datacenter mean for Wisconsin? Iowa’s experience offers insight

Watch our video to hear from local leaders in West Des Moines as they share their experiences and the benefits so far, including datacenter job creation, partnerships with educational institutions, and infrastructure projects like the Adam Street water tower.

Staying connected

For more information about Microsoft’s work in Wisconsin, visit the Microsoft in your community page.

For community-related questions, contact us at WisconsinDC@microsoft.com or leave a voicemail at 1-608-535-3569.

For PR-related questions, contact the Microsoft Media Relations at rapidresponse@we-worldwide.com.