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Microsoft Rebuilds Foxconn Factory into Massive AI Data Center

Microsoft AI Data Center Foxconn Wisconsin Nvidia Sustainability
September 18, 2025
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Article Summary

Microsoft is dramatically transforming Foxconn’s former LCD factory in Wisconsin into a state-of-the-art AI data center, dubbed ‘Fairwater.’ The project, slated for completion in early 2026, represents a significant investment, totaling $3.3 billion. Housing ‘hundreds of thousands’ of Nvidia’s GB200 GPUs, connected by a fiber network capable of circling Earth 4.5 times, the center is positioned to be ten times more powerful than the current fastest supercomputers, significantly boosting Microsoft’s AI training capabilities. A key element of the design is a closed-loop cooling system minimizing water waste. The move addresses concerns about the environmental impact of AI data centers, and signals Microsoft's commitment to sustainable computing. Microsoft VP Brad Smith emphasized the project’s environmentally friendly approach. This follows years of speculation around the abandoned Foxconn facility, initially hailed as a major investment that ultimately failed to materialize.

Key Points

  • Microsoft is building a $3.3 billion AI data center at Foxconn’s former factory in Wisconsin.
  • The data center will house ‘hundreds of thousands’ of Nvidia’s GB200 GPUs, creating a computing cluster ten times more powerful than the fastest supercomputer.
  • A closed-loop cooling system minimizes water waste, addressing environmental concerns related to AI data center energy consumption.

Why It Matters

This news is significant because it demonstrates Microsoft’s aggressive strategy in the rapidly evolving AI landscape. The scale of the investment and the utilization of cutting-edge hardware – particularly Nvidia’s GB200 GPUs – underscore Microsoft's ambition to become a leading force in AI development and deployment. Furthermore, the focus on sustainability is crucial given the growing scrutiny of AI’s energy demands and its potential environmental impact, making this a strategically important move for a company increasingly concerned about its public image.

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