Microsoft Revives Foxconn’s Abandoned Factory in Wisconsin to Build World’s Most Powerful AI Data Center with Sustainable Design
Microsoft has unveiled plans to transform Foxconn’s abandoned LCD manufacturing facility in Wisconsin into the “world’s most powerful” AI data center, named Fairwater, set to come online in early 2026. The $3.3 billion project will occupy 315 acres of land and span three massive buildings totaling 1.2 million square feet—repurposing a site that once symbolized a high-profile but ultimately unsuccessful industrial bet. The original Foxconn factory, announced in 2017 with promises of thousands of jobs and a new era of U.S. manufacturing, was largely shuttered by the end of 2018 and widely criticized as a “boondoggle.” Now, Microsoft is breathing new life into the complex, turning it into a cutting-edge hub for artificial intelligence. At the heart of the Fairwater facility are hundreds of thousands of Nvidia GB200 GPUs, interconnected by fiber-optic cables so extensive they could circle the Earth 4.5 times. According to Microsoft CEO Satya Nadella, this massive GPU cluster will be ten times more powerful than the world’s fastest supercomputer, significantly accelerating the company’s AI model training capabilities. Microsoft confirmed that additional Fairwater data centers are currently under construction across the United States, signaling a major expansion of its AI infrastructure strategy. The company is betting heavily on its ability to scale AI development through these high-performance, purpose-built facilities. Sustainability is a key focus of the project. Microsoft highlighted its environmentally conscious design, which features a closed-loop cooling system that requires only a single fill of water and then operates without evaporation or ongoing water loss. This innovation addresses one of the biggest criticisms of AI data centers: their enormous water and energy demands. During the announcement, Microsoft’s vice chair and president emphasized the company’s commitment to reducing the environmental impact of AI infrastructure, a crucial move as the industry faces growing scrutiny over its energy consumption and carbon footprint. The transformation of a failed factory into the future of AI computing underscores both the rapid evolution of technology and the shifting landscape of industrial investment in the U.S.
