Microsoft backs away from new data center after backlash in small Wisconsin town

Although big tech companies are pouring billions into AI infrastructure projects, not everyone wants a massive data center in their backyard.

Microsoft has abandoned its plans to build a data center in Caledonia, Wisconsin, after facing opposition from the local community.

the Milwaukee Journal Sentinel The tech giant has canceled its application for the current site but is still seeking to develop a data center somewhere in Caledonia or the broader southeastern Wisconsin region, it reported Wednesday.

The complex is called “Project Nova” and is said to have been planned as a project 244-acre facility It contains three data center buildings and a 15-acre electrical substation near the We Energies Oak Creek power station. It would have been Microsoft’s third planned data center in the state.

Microsoft said in a statement provided to Gizmodo:

Based on the community feedback we heard, we chose not to move forward with this site; We remain committed to investing in southeastern Wisconsin and look forward to working with Caledonia Village and Racine County leaders to identify a site that aligns with community priorities and our long-term development goals.

The news comes as data center projects are popping up across the US in an effort to build critical infrastructure for more powerful AI models and justify the dizzying investments technology companies are lavishing on in the super-intelligence race.

OpenAI Stargate project It includes plans for data centers in Texas, Ohio and New Mexico. Meta is building new AI data centers in Ohio and Louisiana. Just this month, Google announced new plans Data center in Arkansas.

Caledonia is one of the few cities that has managed to stop these expensive projects. And in September, Google too Withdrawal of the rezoning proposal For a 468-acre data center in Indianapolis.

Caledonians who opposed the plan launched a website called Stop Project Novawhere they listed concerns including high electricity bills, unstable power grid, and light pollution.

In addition to a local station Fox 6 Milwaukee reported In September, more than 100 residents attended a public meeting to share concerns about the project’s environmental impact, including the use of water from Lake Michigan.

However, Microsoft’s other data center plans in the region remain on track.

Last month, the company said it was in the final stages of its Fairwater site, which it calls The most powerful AI data center in the world(In Mount Pleasant, Wisconsin). The facility could come online as soon as next year.

Microsoft also announced at the time that it was investing another $4 billion to build a second, similarly sized data center nearby.