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Microsoft Pauses Construction On $3.3 Billion Data Center Expected To Be Used By ChatGPT-Parent OpenAI For Massive Super Computer

AInvestSunday, Jan 5, 2025 11:38 pm ET
5min read


Microsoft has announced a pause in construction on parts of its $3.3 billion data center campus in Mount Pleasant, Wisconsin, which was expected to be used by OpenAI, the parent company of ChatGPT, for a massive supercomputer. The pause is due to an evaluation of the scope and recent changes in technology, as well as how these changes might impact the design of the facilities. Microsoft anticipates that this process will last months.

The data center campus, which is being built on land initially optioned for Foxconn's megaproject, was expected to be a significant investment in AI infrastructure. Microsoft had planned to invest $3.3 billion in the project by the end of 2026, with the first phase still on track to be completed on time. However, the pause affects construction in areas 2 and 3A, which were optioned to Foxconn before being sold to Microsoft.

Microsoft has stated that the pause is not expected to affect the overall scope or nature of the project, and that the company is still committed to its plans for the data center campus. Village officials in Mount Pleasant have also expressed optimism that the construction hold will not lead to another Foxconn-level debacle.

The delay in construction may have potential impacts on employment and economic development in the Mount Pleasant area. However, Microsoft has stated that it is still on track to meet its financial commitments under the development agreement made last year. The company has also indicated that goodwill projects in the area, such as the "AI Co-Innovation Lab" it is building with the University of Wisconsin, will continue.

Microsoft's decision to pause construction on parts of its data center campus in Mount Pleasant highlights the company's commitment to investing in and adapting its infrastructure to support the growing demands of AI and its partnership with OpenAI. The delay may also reflect the company's desire to integrate new technologies, such as closed-loop water cooling systems, into its data center designs to reduce water usage and improve efficiency.



In conclusion, Microsoft's pause in construction on parts of its $3.3 billion data center campus in Mount Pleasant is a reflection of the company's commitment to investing in and adapting its infrastructure to support the growing demands of AI and its partnership with OpenAI. The delay may also reflect the company's desire to integrate new technologies into its data center designs to improve efficiency and reduce water usage. Despite the pause, Microsoft remains committed to its plans for the data center campus and is on track to meet its financial commitments under the development agreement made last year.

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