Mount Pleasant data center: Microsoft waives $5M development incentive

Published September 28, 2026 7:39 PM CDT

Microsoft data center construction in Mount Pleasant (SKYFOX)

In Mount Pleasant, Microsoft has decided to redirect its annual $5 million annual development incentive, which will go toward property tax relief.

The incentive comes from a 2023 agreement when the company announced it would build a data center.

Utilizing the money

By the numbers:

$4.9 million will go to the Village of Mount Pleasant as direct funding for municipal tax relief and public infrastructure. Starting in 2027, the village will use the money to reduce the tax levy and keep property tax rates stable. Taxpayers will see this impact starting on their December property tax bills.

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The money will also cover capital expenses such as road rebuilding and purchasing new police and fire vehicles, which will allow Mount Pleasant to avoid borrowing money and saving taxpayers from interest costs.

Microsoft data center construction in Mount Pleasant (SKYFOX)

$100,000 will go to the Racine County Economic Development Corporation (RCEDC) to fund countywide business attraction and economic growth initiatives.

Related

Microsoft data centers; Mount Pleasant approves expansion plan

Mount Pleasant approved 15 more Microsoft data centers on Monday, Jan. 26, expanding an AI project officials say could become the world’s largest supercomputer, with construction expected to begin later this year.

More data centers

What's next:

Microsoft in summer 2026 completed construction of its first data center in Mount Pleasant.

Map of Microsoft's Mount Pleasant data center plans

A second facility is under construction immediately to the west with an expected completion in 2028, and Mount Pleasant has approved preliminary site plans for another two campuses to the north.

The Source: The Village of Mount Pleasant sent FOX6 a news release.

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