Microsoft cancels Wisconsin data center after community pushback — 244-acre Caledonia site on hold, but Redmond says it remains committed to the region

Microsoft has cancelled its initial plan of building a data center in Caledonia, Wisconsin, after residents and elected officials objected to the plan. According to the Milwaukee Journal Sentinel, Redmond is cancelling its application for the current site, although it’s still looking at building one in a different location in Caledonia or in another part of Racine County.

“Based on the community feedback we heard, we have chosen not to move forward with this site,” Microsoft said to the publication. “We remain committed to investing in Southeast Wisconsin and look forward to working with the Village of Caledonia and Racine County leaders to identify a site that aligns with community priorities and our long-term development goals.”

Microsoft’s plan for the original Caledonia site, called Project Nova, was to build a 244-acre facility containing three data center structures and a 15-acre electrical substation. Data Center Dynamics reports that the company planned to construct it a little over a mile west of the We Energies Oak Creek Power Plant. This makes it a convenient location, especially as data centers consume a ton of electricity.

The residents' complaints were not listed in the news report, but it’s not hard to imagine their concerns. Data centers are notorious for causing spikes in power bills. Even if the affected community can afford to pay more in electricity bills, they’re also known to reduce the power quality in the area, affecting the lifespan of appliances and other electrical equipment in surrounding homes.

“I commend Microsoft for listening to the community,” Village Trustee Fran Martin told Data Center Dynamics. “And for also addressing the concerns that the community had and that I had about that particular site.” While Redmond is no longer pushing forward with the current location, it seems to still be looking to build Project Nova in Southeast Wisconsin, particularly within the general area of Racine County.

Microsoft is already moving forward with another data center project just south of Caledonia in Mount Pleasant. The company dubbed it the “world’s most powerful” AI data center, set to go online next year. Microsoft CEO Satya Nadella said that it will have more performance than the current fastest supercomputer, which is likely a dig at Musk’s Colossus. Given that the xAI site in Memphis, Tennessee, already uses 300 MW of power, with plans to hit 1 GW in the near future, it’s safe to say that Microsoft’s Wisconsin data centers could use even more electricity.

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