Biden touts Microsoft AI data center in Racine
(The Center Square) – President Joe Biden’s latest campaign stop in Wisconsin came with more than just a quick speech and some pictures.
The president was in Racine on Wednesday to help announce Microsoft’s latest data center expansion.
“Microsoft is investing $3.3 billion to build a new data center here in Racine. That’s going to help build one of the most powerful artificial intelligence systems in the world,” Biden explained.
Last fall, Microsoft announced plans for a $1.4 billion data center site. The $3.3 billion site announced Wednesday would build on that original investment.
The president promised the new data center will mean 2,300 union construction jobs and as many as 2,000 jobs in the future.
“It’s not only a significant investment in infrastructure for Racine, but for the people of Racine,” Biden told the crowd at Gateway Technical College. “It means folks are getting trained in new high paying, high skilled jobs that don’t require a four-year college degree, and don’t require you to leave home.”
Gov. Tony Evers said the new Microsoft data center is a “watershed” for Wisconsin.
“Microsoft is a blue-chip corporation that recognizes the strength of Wisconsin’s workers, infrastructure, economy, and our quality of life. Microsoft has chosen to locate and invest here because they know the future is here in Wisconsin,” Evers said in a statement.
The new Microsoft center will be built on land that was originally part of the Foxconn deal.
Democrats in Wisconsin criticized that deal, particularly when former President Trump came to Wisconsin for the groundbreaking in 2017.
President Biden echoed their criticism Wednesday.
“In the previous administration, my predecessor made promises which he broke more than he kept. He left a lot of people behind, and communities like Racine,” Biden said to a round of applause. “On my watch we make promises, and we keep promises.”
Microsoft said last year when it announced its initial land buy, that it chose Racine County and the old Foxconn site because of the infrastructure that was already in place.
As part of the original Foxconn deal, the company built roads and sewers and created an electrical grid for the first phase of the project.
Evers renegotiated the Foxconn deal after he took office, and finally paid Foxconn its tax incentives. The agreement for Foxconn is now much smaller than the $10 billion investment and $2.8 billion in tax incentives for 13,000 jobs that were first promised.
Now, Wisconsin is on the hook for $80 million in tax incentives for just more than 1,400 jobs and a $672 investment.
