Microsoft scraps 244-acre Caledonia data center after resident revolt

Microsoft has abandoned plans for a 244-acre data center in the Village of Caledonia, Wisconsin, after sustained opposition from residents. More than 2,000 people signed a petition against the rezoning that would have cleared the way for construction on farmland near the WE Energies Oak Creek Power Plant, and hundreds turned out at meetings to oppose the project. A company spokesperson said the decision was driven directly by community feedback.

Microsoft says it still wants to invest in Southeast Wisconsin and intends to work with Caledonia and Racine County officials to find a location that better fits local priorities. Village trustee Nancy Pierce and resident Prescott Balch both said they are open to a future Microsoft project, but criticized the process for shutting residents out of direct conversations with the company until late in the approval cycle.

The reversal is another data point in a growing pattern of hyperscaler buildouts colliding with local zoning fights over land use, water, power draw, and neighborhood character — pressures that are reshaping where AI-era infrastructure can actually get sited.