Microsoft’s AI Megasite: Redefining Data Centres

Microsoft is pushing forward on Fairwater, described by the company as the most potent AI data centre worldwide.

The project, in Mount Pleasant, Wisconsin, is nearing completion, with the facility set to start operation by early 2026.

This effort signifies a US$3.3bn expenditure already in motion, with recruitment for full-time positions under way to manage the centre once it's operational.

Microsoft further declares an additional $4bn allocation for a second data centre in the state, amplifying its total investment in Wisconsin to over US$7bn.

AI training on a grand scale

The Mount Pleasant facility is crafted for frontier AI models, incorporating hundreds of thousands of NVIDIA graphics processing units, crucial for AI model training that run extensive calculations simultaneously in clustered setups.

These clusters bind with enough fibre optic cabling to circle the Earth four times.

The centre offers tenfold performance advancement over the current fastest supercomputers, according to Microsoft.

The centre facilitates researchers and engineers in training next-gen models and testing new ideas more efficiently.

Positioned as an innovation nucleus, the data centre is anticipated to aid in significant advancements in science and medicine, developed through workloads trained in Wisconsin.

Microsoft outlines the broader local benefits, from construction jobs and long-term IT careers to educational opportunities aligned with the centre.

Its partnership with Gateway Technical College has launched Wisconsin’s inaugural ‘Datacenter Academy,’ aimed at readying students for data centre occupations.

Design focused on sustainability

Sustainability stands as a key element of the project. Above 90% of the centre operates on a closed-loop liquid cooling system, filled initially during construction and eternally recirculated.

Remaining areas employ outside air cooling, switching to water usage solely during extreme heat.

Annual water consumption is expected to be minimal, closely matching that of a single restaurant or an 18-hole golf course over a summer week.

Microsoft is also committed to independent energy sourcing to avert local price hikes.

Prepaying energy and infrastructure costs assures stable pricing for locals. Microsoft promises to balance fossil fuel energy usage with an equal return of carbon-free energy to the grid.

The initiative includes a 250MW solar project in Portage County which is under construction to aid the centre.

Working with WE Energies, Microsoft manages energy factors under transparent tariffs to retain grid reliability.

The project includes ecological restoration funding in Racine and Kenosha counties through the Root-Pike Watershed Initiative Network, covering locations such as Cliffside Park and Shagbark Restoration Area.

“What sets Microsoft’s infrastructure apart is the relentless pursuit of innovation and sustainability,” says Noelle Walsh, President for Cloud Operations + Innovation at Microsoft, writing on LinkedIn.

“Our data centres use advanced closed-loop liquid cooling systems – integrated pipes circulate cold liquid directly into servers, extracting heat efficiently and ensuring zero water waste."

She continues: “Nearly 90% of our data centre capacity uses this system, requiring water only once during construction and continually reusing it with no evaporation losses. This breakthrough enables higher rack density and supports the most demanding AI workloads, while dramatically reducing environmental impact. 

“Globally, Microsoft has contracted over 34 gigawatts (GW) of carbon-free (renewable) electricity across 24 countries. In Wisconsin, we will match our energy consumption with renewable energy onto the grid.

“To protect customers from future cost increases due to data centre operations, Microsoft is pre-paying for the energy and electrical infrastructure used by the Wisconsin data centre."

Community focus and workforce development

At peak construction, more than 3,000 workers across various trades, including electricians and plumbers, have been involved.

Upon full completion, the first centre will house about 500 full-time employees, with the second site increasing that number to 800.

Microsoft is committing to local education and development initiatives. The Datacenter Academy is expected to educate more than 1,000 students within five years.

With collaboration from Gateway Technical College, the University of Wisconsin and other partners, Microsoft has trained 114,000 people across the state in AI skills, amongst them 1,400 locals from Racine County.

It is sponsoring the country’s first manufacturing-centred AI Co-Innovation Lab at the University of Wisconsin-Milwaukee, aiding producers like Regal Rexnord and Wiscon Products in AI-driven progress.

An emphasis on broadband expansion has enabled more than 9,300 rural residents and 1,200 homes and businesses in Sturtevant to access improved services.

Brad Smith, Microsoft's Vice Chair and President, remarks that the project mirrors his personal ties and a larger vision for US innovation.

“As someone who spent almost five years as a kid going to school and delivering the morning newspaper by bicycle in Mount Pleasant, this moment means more than just personal nostalgia,” he says.

“It shows that Wisconsin has not just a longstanding and proud industrial past – it’s helping define the future of American innovation.

“Mount Pleasant isn’t just becoming a hub for AI – it’s becoming a blueprint for how innovation can serve everyone. We’re not just investing in an AI data centre; we are investing in a community.

"And we are investing in a powerful idea: that innovation is for everyone, and that we can build the future together – with care for people, place and planet.”