Microsoft has announced plans to transform the abandoned Foxconn LCD factory site in Wisconsin into the “world’s most powerful” AI data center, Fairwater, in a $3.3 billion project unveiled on September 18, 2025.
The Fairwater facility will cover 1.2 million square feet across three buildings on 315 acres of land and will be equipped with “hundreds of thousands” of Nvidia GB200 GPUs, connected by fiber optic cables sufficient to encircle the Earth 4.5 times, according to Microsoft CEO Satya Nadella. This GPU cluster is claimed to be ten times more powerful than the fastest supercomputer, significantly accelerating AI training processes. Microsoft also revealed that additional Fairwater data centers are under construction in other parts of the United States, highlighting its expanding AI infrastructure ambitions.
Environmental sustainability is a key aspect of the project, given concerns over AI’s high energy demands. The data center features a closed-loop cooling system that needs to be filled only once before being sealed, eliminating evaporation and minimizing water waste. Microsoft’s Vice Chair and President Brad Smith emphasized these eco-friendly measures, stating that the facility “won’t drain Lake Michigan dry,” addressing concerns about the strain on regional water resources from large-scale data operations.
