Microsoft redirects data center incentives to Mount Pleasant
Microsoft is redirecting $5 million in annual financial incentives back to the Village of Mount Pleasant and the Racine County Economic Development Corporation, as the company's data center campus has exceeded property value requirements. The village plans to use its $4.9 million portion to stabilize or reduce property taxes for residents. Microsoft also announced its first data center facility, "Fairwater," is now operational, while facing a lawsuit filed in July over noise complaints from nearby residents.
Microsoft is redirecting up to $5 million in annual financial incentives back to the Village of Mount Pleasant and the Racine County Economic Development Corporation. These incentives were initially approved for Microsoft's massive data center campus in 2023, contingent on the company generating sufficient property value. Having exceeded these requirements, Microsoft is now eligible for the funds but has chosen to return them.
Mount Pleasant Village President David DeGroot announced the village's portion of the funds, approximately $4.9 million, will be dedicated to stabilizing or potentially lowering property taxes for residents, addressing calls for tax relief. The Racine County Economic Development Corporation will receive around $100,000 for county-wide initiatives. Village Trustee Ram Bhatia praised Microsoft's decision, likening it to a "dividend" for the community.
The decision comes as Microsoft's first Mount Pleasant data center facility, "Fairwater," has become operational, with a second facility expected to be completed by 2028. Brad Smith, Microsoft's president and vice chair, reiterated the company's commitment to community benefits through economic opportunity, local careers, and tax revenue. The incentives are funded by property taxes generated within the data center's tax incremental finance district. Separately, Microsoft faces a lawsuit filed in July over noise complaints from residents near the campus, who have also raised concerns about construction noise, dust, light pollution, traffic, and landscape changes. The company also has plans for another data center project in Kenosha.