Microsoft plans to create $1 billion data center campus in Mount Pleasant

By BizTimes staff

Microsoft is planning to build a $1 billion data center campus in the village of Mount Pleasant, on a 315-acre parcel of land in the Foxconn complex area. Microsoft plans to buy the land from the village for more than $50 million.

By The Numbers

Technology Park and is within the tax incremental financing district for the Foxconn site.

Site plans included in village documents show the Microsoft data centers totaling about 1.4 million square feet.

“Microsoft was attracted to this location because it is primed for development,” said village of Mount Pleasant president David DeGroot. “Through local investments, we have transformed this area of Mount Pleasant and equipped it with the infrastructure necessary to support a major investment by Microsoft.”

A news release from village officials states there will be two phases of construction – the first beginning no later than July 1, 2026 and the second beginning no later than July 1, 2033.

Microsoft will be eligible to earn back some of its investment as it constructs buildings. The company may recoup 42% of the annual incremental property taxes it pays on the improvements it builds, not to exceed $5 million per year for the duration of the agreement and the tax incremental financing district (TID).

Payments are contingent on the village having received sufficient tax increment revenue to have first paid all other TID obligations. The village and the county have the option to repurchase the land being sold to Microsoft at the original per-acre price if Microsoft fails to start construction by the deadlines.

“The agreement does not lessen any of Foxconn’s obligations under its development agreement,” according to the news release. “The agreement does not provide Foxconn any new benefits.”

Foxconn will release all rights to the 315 acres of land that will be sold to Microsoft. After covering the village’s costs, the proceeds of the land sale to Microsoft would go to Foxconn as reimbursement for the $60 million land acquisition advance it provided to the village to fund land acquisition for its complex.

When Foxconn initially selected Mount Pleasant for a planned Gen. 10.5 LCD screen fabrication facility in 2017, local officials set out to acquire almost 3,000 acres of land to support Foxconn’s development. The arrangement called for Foxconn to have the rights to develop or direct the use of the land, but it was initially acquired by the village.

Those plans included Foxconn being reimbursed for the advance, either as the village sold properties off to Foxconn’s suppliers or others locating in the project area, or through elements of the tax incremental financing district supporting the project. n