MILWAUKEE — Data centers are emerging as the latest drivers of construction and development in Wisconsin as tech companies eye the Great Lakes region for its abundant, undeveloped land and ample fresh water supply. These high-tech facilities, crucial for storing and processing vast amounts of data, are becoming increasingly vital as artificial intelligence (AI) technology continues to advance.

Across the country, data processing facilities are contributing significantly to large-scale construction projects, with thousands of construction jobs already created in southeast Wisconsin. In addition to the data centers themselves, these projects are stimulating the development of supporting infrastructure, including housing and commercial spaces, aimed at boosting tech job opportunities.

One of the most significant developments is Microsoft’s $3.3 billion data center campus in Mount Pleasant, which broke ground last year. The project, situated on farmland previously sold to Taiwan-based Foxconn, spans 1,900 acres. Kiewit Corp. and Walsh Construction, alongside several Wisconsin contractors, are handling the construction. At peak times, the site has employed up to 2,300 craft laborers and promises thousands of long-term technology jobs.

Other projects are also on the horizon. In Kenosha County, Microsoft has acquired an additional 240 acres for the Mount Pleasant campus expansion. Similarly, Cloverleaf Infrastructure plans a 1,900-acre data center campus in Port Washington, with an anticipated buildout period of five to eight years. In addition, two other data centers in Beaver Dam and Wisconsin Rapids are planned, valued at $500 million and $200 million, respectively.

Energy Considerations and Challenges

While data centers promise job creation and economic growth, they also come with substantial energy demands. The Port Washington project alone is projected to use up to one gigawatt of electricity upon completion. Data centers require 10 to 50 times more energy per floor space than a typical commercial building, according to the U.S. Department of Energy.

The Midcontinent Independent System Operator (MISO), which manages the electric grid in the central U.S., has warned of potential power shortages. The grid could face a 2.7-gigawatt deficit next summer and a 14,000-megawatt deficit by 2030 due to insufficient power capacity.

Microsoft's Commitment to Mount Pleasant

Despite a two-month pause last year to reassess plans for its Mount Pleasant site, Microsoft has continued construction at an accelerated pace. Officials from both Microsoft and Mount Pleasant have confirmed their commitment to the $3.3 billion project, with Microsoft’s investment meeting its financial obligations to the Village.

“Microsoft to date has proceeded with construction of its data center development in Mount Pleasant at an unbelievably fast pace,” said Mount Pleasant officials. “The company is years ahead of schedule in satisfying its financial commitments to the Village under our development agreement.”

Union Construction Support

Dan Bukiewicz, President of the Milwaukee Building and Construction Trades Council, expressed support for the growing demand for data centers. “These data centers are part of the fabric of the next generation of how we conduct business,” he said. “The need for them is only going to grow as technology advances.”

Alongside the data center construction itself, efforts to bolster local infrastructure are also underway, creating job opportunities in the process. Bukiewicz remains confident that Wisconsin has enough skilled workers to meet the demands, although some out-of-state workers are also contributing to the labor force.

Microsoft’s partnership with educational institutions, including Gateway Technical College and the University of Wisconsin-Milwaukee, will help upskill thousands in tech jobs, with a focus on artificial intelligence training. A collaboration with United Way Wisconsin is expected to help train over 100,000 people in generative AI by 2030.

We Energies Investment and Renewable Energy Focus

In response to the heightened energy demands of data centers and other large-scale manufacturers, Wisconsin's utility sector is making significant investments in renewable energy sources and natural gas infrastructure. WEC Energy Group, the parent company of We Energies, has planned more than $9.1 billion in renewable energy investments over the next five years.

The company’s energy plan also includes the construction of a $300 million natural gas plant in Kenosha County to meet growing energy needs, which has sparked some debate. Renewable energy advocates have raised concerns about the environmental impact of natural gas, particularly regarding air quality and public health. However, construction unions have supported the project, recognizing its importance in meeting energy demands for both data centers and other industries in the region.

“We have a great partnership [with unions],” said Brendan Conway, a spokesperson for WEC Energy Group. “They’re part of our day-to-day workforce, and many of our field crews are union workers as well.”

The data center boom in Wisconsin is proving to be a catalyst for economic growth and infrastructure development, with significant investments in both tech and energy sectors. As the demand for high-speed internet and advanced technologies continues to increase, these facilities will play an essential role in the state's future, offering new job opportunities and shaping the region’s technological landscape.

Originally reported by Bridge Tower Media Newswires in Finance & Commerce.