Technology giant Microsoft (MSFT) has announced plans to build a second artificial intelligence (AI) data center in Wisconsin, bringing its spending in the state to $7 billion.
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The new project will join a $3.3 billion data center located in the southeastern corner of the state that was previously announced. Microsoft said the first data center in Wisconsin is scheduled to open in 2026 and will employ 500 people.
The second data center in Wisconsin will house the world’s most powerful AI supercomputer, said Microsoft in announcing the project. That supercomputer will house and connect hundreds of thousands of Nvidia (NVDA) microchips. The two data centers combined will create a total of 800 jobs in Wisconsin.
Investing in America
Microsoft’s $7 billion data center investment in Wisconsin is the latest example of technology companies pouring money into the American economy at the insistence of U.S. President Donald Trump. Wisconsin has drawn the attention of politicians, including U.S. presidents, in recent years. The state was initially the site of a proposed $10 billion factory to help build Apple (AAPL) iPhones, though that plan fell through.
As for Microsoft, it says that it plans to pre-pay for electrical infrastructure to avoid raising electricity rates in Wisconsin and that a cooling system will tap into the state’s cold climate to reduce the data center’s yearly water usage to that of an average restaurant. The second data center site is situated between the cities of Milwaukee and Chicago.
Is MSFT Stock a Buy?
Microsoft’s stock has a consensus Strong Buy rating among 34 Wall Street analysts. That rating is based on 33 Buy and one Hold recommendations issued in the last three months. The average price target on MSFT stock of $626.88 implies 22.38% upside from current levels.
