Microsoft Corporation (NASDAQ:MSFT) has decided to temporarily pause construction on parts of its ambitious data center project in Mount Pleasant.
What Happened: Earlier this week, the company said that it still plans to complete the first phase of the data center, with a total investment of $3.3 billion expected by the end of 2026, reported Wisconsin Public Radio.
"We have paused early construction work for this second phase while we evaluate scope and recent changes in technology and consider how this might impact the design of our facilities," a Microsoft spokesperson told the publication.
The AI data center in Wisconsin was expected to be used by ChatGPT-parent OpenAI for a massive supercomputer, according to The Information.
Microsoft paused some construction on a Wisconsin AI data center that OpenAI is slated to used.
— Anissa Gardizy (@anissagardizy8) January 5, 2025
The company said it needs to evaluate "scope and recent changes in technology," as well as how "this might impact the design of our facilities."
Sean Ryan, representing the village of Mount Pleasant, confirmed the pause is to integrate new data center designs. He noted that the first phase is on track for completion this year.
Microsoft did not immediately respond to Benzinga's request for comments.
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Why It Matters: The decision to pause construction comes as Microsoft is heavily investing in data centers to support its growing focus on artificial intelligence.
The company has announced plans to allocate approximately $80 billion in fiscal 2025 toward developing data centers for AI model training and deploying AI and cloud-based applications.
The Mount Pleasant site was initially optioned for a Foxconn (OTC:FXCOF) megaproject that was later abandoned. Foxconn had promised a $10 billion investment in Mount Pleasant but the company later scaled back, reducing the investment to $672 million.
Price Action: Microsoft's stock rose by 1.14% on Friday, closing at $423.35. Over the past year, Microsoft shares gained 15.12%, trailing behind the Nasdaq 100, which surged 30.79% during the same period, according to data from Benzinga Pro.
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