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Microsoft raises Wisconsin data center investment to $7 billion with new AI hub

Microsoft (MSFT.O) announced Thursday that it will build a second large-scale artificial intelligence data center in Wisconsin, boosting its total investment in the state to more than $7 billion.

The $4 billion facility will be built alongside a $3.3 billion data center in Mount Pleasant, unveiled last year. The first site remains on track to open in 2026, employing about 500 people at its peak. Once the second center is completed, total employment is expected to reach about 800.

Microsoft said the expanded site will ultimately host the world’s most powerful AI supercomputer, linking together hundreds of thousands of Nvidia (NVDA.O) chips.

The Racine County location, between Milwaukee and Chicago, has been a political focal point since former President Donald Trump promoted Foxconn’s plan for a $10 billion factory there—a project later drastically downsized. At the launch of Microsoft’s first data center last year, President Joe Biden pointed to Foxconn’s retreat while emphasizing Microsoft’s long-term commitment.

To support the new project, Microsoft said it will pre-pay for electrical infrastructure to prevent higher utility rates in the region. The company will also deploy a state-of-the-art cooling system that leverages Wisconsin’s cool climate, reducing annual water consumption to that of an average restaurant. Solar power will be built elsewhere in the state to offset the data centers’ electricity use, though Microsoft President Brad Smith acknowledged that new fossil fuel generation, including liquefied natural gas, will also be required.

Smith said while permanent jobs will number in the hundreds, construction will create thousands of positions for skilled workers such as electricians and pipefitters. “All the things that we build need to be operated,” he told Reuters. “It needs to be maintained. These are good jobs.”

SoftBank to Receive Nvidia’s Latest Blackwell Chips for AI Supercomputer

SoftBank’s telecommunications unit in Japan will be the first to acquire Nvidia’s latest Blackwell-designed chips, marking a key step in the company’s ambition to harness artificial intelligence capabilities. The California-based chip giant made the announcement at a recent AI event in Tokyo, featuring both SoftBank Group CEO Masayoshi Son and Nvidia CEO Jensen Huang. SoftBank also plans to incorporate the Blackwell architecture in its upcoming supercomputer, as Son strengthens his group’s investment in AI through strategic acquisitions, including a stake in OpenAI and the purchase of chip startup Graphcore.

During a lively “fireside chat,” Huang recalled an instance when Son, already a visionary in AI, once proposed lending him the funds to buy Nvidia, a company the market undervalued at the time. “He wanted to lend me money to buy Nvidia—all of it. Now I regret not taking it,” Huang said, smiling. Son had made the offer shortly after acquiring Arm, a chip designer he later attempted to sell to Nvidia, though regulatory issues prevented the merger.

Over the years, Nvidia has transitioned from a primary focus on gaming graphics chips to becoming the global leader in AI chip technology, now powering much of the AI revolution. While Son has earned recognition as an early-stage investor in tech, with notable stakes in Alibaba and other successes, he has also faced setbacks, such as his high-profile investment in WeWork.

With telecom firms worldwide exploring new growth avenues, SoftBank and Nvidia are collaborating on a network to support both AI and 5G services, aligning their visions for the future. “It’s the same vision that we can smell, right? It’s like a wolf smell wolf,” Son joked about their shared outlook. Huang responded with humor, “I have two puppies. I don’t like that mental image,” drawing laughter from the audience.