Despite massive investments by Big Tech in AI infrastructure, not every community welcomes a large data center in its backyard. Microsoft has abandoned its plans for a data center in Caledonia, Wisconsin, after facing significant local opposition. The Milwaukee Journal Sentinel reported Wednesday that the tech giant has withdrawn its application for the proposed site but remains committed to developing a data center in Caledonia or the broader southeastern Wisconsin region. The project, known as Project Nova, was initially envisioned as a 244-acre complex featuring three data center buildings and a 15-acre electrical substation near the We Energies Oak Creek Power Plant. It would have been Microsoft’s third data center in Wisconsin, part of a broader push to expand AI infrastructure to support increasingly powerful models. In a statement provided to Gizmodo, Microsoft said: “Based on the community feedback we heard, we have chosen not to move forward with this site; 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.” The decision comes amid growing resistance to large-scale data center developments across the U.S. As companies race to build the hardware needed for superintelligence, communities are raising concerns about energy use, environmental impact, and local infrastructure strain. Caledonia stands out as one of the few towns to successfully halt such a project. Residents opposed to Project Nova launched a website called Stop Project Nova, citing issues such as rising electricity costs, potential instability in the power grid, and light pollution from the facility. In September, over 100 locals attended a public meeting to voice concerns, including the use of water from Lake Michigan, a critical regional resource. This isn’t the first time a major tech company has retreated from a data center proposal. In September, Google withdrew a rezoning request for a 468-acre data center in Indianapolis, also due to community pushback. Still, Microsoft’s broader plans in Wisconsin remain intact. The company is now in the final stages of developing its Fairwater site in Mount Pleasant, which it describes as the world’s most powerful AI data center. That facility could come online as early as next year. Microsoft also announced a new $4 billion investment to build a second, similarly sized data center nearby, signaling its continued commitment to the region despite the setback in Caledonia.