Has Microsoft Built the World’s Most Powerful Data Centre?

In Mount Pleasant, Wisconsin, Microsoft is completing Fairwater, which the company describes as the world’s most powerful AI data centre. 

Construction is entering its final phase, with the facility scheduled to go online in early 2026. The facility represents a US$3.3bn investment, with hiring already underway for full-time staff who will manage the site once it goes live.

Microsoft also confirms a further US$4bn investment to build a second data centre of similar scale in the state, bringing the total commitment in Wisconsin to more than US$7bn.

Engineered for AI at scale

The Mount Pleasant facility is designed to train frontier AI models and houses hundreds of thousands of NVIDIA graphics processing units (GPUs) in clustered formations. GPUs are specialised processors that accelerate AI model training by running large-scale calculations in parallel.

These clusters are connected by enough fibre optic cable to circle the planet four times. According to Microsoft, the data centre will provide 10 times the performance of the fastest supercomputers currently available.

The site is engineered to help researchers and engineers train next-generation models and test new ideas with greater efficiency. The company positions the data centre as a hub for innovation, with breakthroughs in medicine and science expected to be developed through workloads trained in Wisconsin.

Microsoft also highlights the wider impact on the local community, with construction jobs, long-term IT careers and training opportunities linked to the facility. A partnership with Gateway Technical College has established Wisconsin’s first ‘Datacenter Academy’, which will prepare students for data centre roles.

Sustainability at the core of design

Sustainability is a central focus for the project. More than 90% of the facility relies on a closed-loop liquid cooling system, which is filled during construction and then continuously recirculated. 

The remaining portion of the site uses outside air cooling, switching to water use only during peak heat periods.

Despite the large fibre and hardware footprint, annual water usage is expected to be modest – equivalent to a single restaurant’s yearly use or the amount consumed by an 18-hole golf course in one week during summer.

Microsoft commits to covering its energy needs without adding pressure to local prices. It is pre-paying for the energy and infrastructure it consumes, ensuring prices remain stable for residents. The company pledges to match every kilowatt hour of fossil fuel energy used with carbon-free energy supplied back to the grid.

This includes a new 250MW solar project in Portage County that is under construction to support the data centre. Microsoft is also working with WE Energies to manage transmission, generation and usage under transparent tariffs designed to protect grid reliability.

The company is funding ecological restoration projects across Racine and Kenosha counties in partnership with the Root-Pike Watershed Initiative Network. These include efforts at Cliffside Park, Lamparek Creek, Kirkorian Park and the 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."

Local investment and workforce development

At peak construction, more than 3,000 workers are employed across multiple trades including electricians, plumbers, iron and steel workers and concrete specialists. Once fully operational, the first data centre will employ about 500 full-time staff, increasing to 800 when the second site is complete.

Microsoft is also investing in local education and training initiatives. Through the Datacenter Academy, over 1,000 students are expected to be trained within five years.

Alongside Gateway Technical College, the University of Wisconsin and other partners, Microsoft has helped train 114,000 people in AI skills statewide, including 1,400 residents of Racine County.

The company sponsors the nation’s first manufacturing-focused AI Co-Innovation Lab at the University of Wisconsin-Milwaukee.

This facility supports manufacturers such as Regal Rexnord, Renaissant and BW Converting in developing AI-driven solutions. Local firms like Wiscon Products are also among the beneficiaries.

Broadband expansion is another area of focus. Microsoft has extended access to more than 9,300 rural residents and connected 1,200 homes and businesses in Sturtevant with faster services.

For Brad Smith, Microsoft Vice Chair and President, who grew up in Mount Pleasant, the project reflects both personal roots and a broader vision. He states that Wisconsin is not only defined by its industrial history but is also playing a role in shaping the future of 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.”