The Moment That May Have Forced Microsoft out of Caledonia

On Oct. 8, it was reported that Microsoft Corp. pulled its plan for a data center in Caledonia after public pushback.

The Plan Commission meeting at the Caledonia Village Hall on Sept. 29 may have been the turning point.

Cars piled one after another into the small parking lot outside the village hall for the 6:00 p.m. meeting.

Prescott Balch has been one of the leaders opposing the possible data centers coming to Caledonia. Around 20 minutes before the meeting, Balch relayed the plan for his group. He handed out pieces of paper with messages urging the Plan Commission against the data centers.

Seventeen minutes before the meeting, the group headed into the village hall slowly. As the anti-data center sentiment grew, so did the turnout.

“The public comments take longer and longer,” said meeting-goer Andrew Hendricks. “More and more people are becoming aware of this, and they want to speak their mind.”

The village hall was overcrowded, leading to a police officer telling people to stand and listen in the lobby where speakers were set up.

Residents who couldn’t find a seat formed clumps wherever they could around the hall, being forced to stand.

Caledonia village board president Tom Weatherson commented on the large attendance at the start of the meeting.

He said it was really nice to see everyone, and wished they would come more often.

Many residents scoffed at the comment.

Technical difficulties were present throughout the night. Mostly microphone issues and presentation hiccups, which only added to the tension.

What Was At Stake?

A 244-acre parcel of land along Douglas Avenue and Botting Road in Caledonia was the center of debate.

The site west of the We Energies power plant was up for being rezoned from an agricultural district to a light manufacturing district.

The Plan Commission was tasked with continuing or halting the rezone attempt. If approved, the vote would head to the Village Board to make the final decision.

A successful rezone was vital for Microsoft’s data center goals.

Rezoning the land would be only one step of many before the data center project would be approved.

The construction of the three data center facilities was to take place one after another, not simultaneously. The time to complete one was around four years.

Early estimates had the first center starting construction in Jan. 2026. If the project went to plan, completion would be set for 2038.

Microsoft representatives and reps of organizations were given the opportunity to speak to the public.

Pro-Data Center Speakers First

A common theme among the Microsoft reps was that their company was a “good neighbor” and committed to working with the community of Caledonia. Another was that Microsoft was environmentally conscious.

“We work with local partners to restore natural area near our site and are committed to responsible energy and water use,” said a Microsoft spokesperson. “We contribute to a sustainable future, we’re committed to being carbon negative, water positive and zero waste by 2030 in Wisconsin.”

One more takeaway was that the project was in its early stages, with many steps to be completed before construction on the data center would actually take place.

The deputy director of the Racine County Economic Development Corporation (RCEDC), Laura Million, echoed these statements.

Million also talked about the possible economic benefits of the data center project.

“The data center will expand the property tax base of Caledonia,” said Million. “The proposed data center will diversify the village’s tax base and increase property tax revenue.”

Million talked numbers that came from a “conservative” staff estimate.

“The new data center could result between $1.2 [million] and $1.6 million in taxes annually to the village and can reduce the property tax burden on residential properties between six and eight percent.”

Rebecca Gries of Milwaukee 7 said the project was estimated to create 300-400 construction jobs and 50-200 onsite jobs after completion.

Gries also said that this was a “pivotal moment” for Caledonia.

“Communities across the Midwest are actively competing for these investments,” said Gries. “If the region doesn’t welcome this infrastructure, the job, tax revenue and economic benefits go elsewhere.”

The crowd murmured with discontent after the statement.

Residents became more restless as time went on and the number of pro-data center speakers increased.  

Whispers of “filibuster” flew around the anti-data center group.

The public had only been informed of Microsoft’s involvement in “Project Nova” (the name of the proposed data center project) around a week before the meeting.

Public Hearing Session

An hour and 45 minutes after the meeting started, it was finally time for the public hearing session.

A total of 49 people spoke, which took almost two and a half hours.

Mike Wasniewski spoke against rezoning the land.

“Why take more of our greenspace that we all seem to love here,” said Wasniewski. “Nobody came or lives in Caledonia for the industry, we’re here for the horses, the greenery – the lake, the land.”

The crowd applauded speakers who were against the items throughout the night.

The next speaker, Mark Lewis, president and CEO of Racine Area Manufacturers and Commerce, spoke in favor of rezoning and the data centers.

The crowd laughed after Lewis said, “Microsoft has publicly stated their data centers will not be the cause of any increase in energy bills for residents.”

“I did not laugh when you got to talk,” responded Lewis.

The 30^th speaker in the public hearing session was trustee Fran Martin. When Martin went up to speak, President Weatherson told her he didn’t think it was appropriate for her to speak, but did not stop her.

Martin expressed concerns over the project.

“We heard that RCDEC and Milwaukee 7 had over a year in planning and were meeting with one another about what would happen in Caledonia. I’m a trustee, I didn’t know even who the applicant was until last Tuesday,” said Martin while looking at the RCDEC and Milwaukee 7 representatives. “So, when you’re asking us to make a decision as momentous as this and you don’t choose to involve us in the process at all I find that difficult, and I find it an attitude that suggests to me that you’re looking at us as, we’ll jam it through, and they’ll say yes.”

Martin said that she wasn’t unpersuadable, but the process had made it difficult for her to get on board.

“I am wondering why the timing is so tight when they’ve had over a year to go on with this planning, why we are required to vote in a two-week timeframe,” said Martin.

The public hearing session was closed at 10:10 p.m., four hours and ten minutes after the meeting started.

Common themes from many opposed to the data center and rezoning were a lack of transparency from Microsoft, environmental concerns, industrial creep, etc.

Of the 49 speakers, 39 were opposed, 9 were in favor and one was neutral.

Eight of the nine in favor spoke representing an entity with a vested interest in the data center going up.

Rezone Voting

After public comments were closed, it was time for the vote.

The rezone was approved 5-2 by the Plan Commission around 10:30 p.m. at night, setting up the Village Board to have the final say.

Nine days later, Microsoft reportedly changed its mind about “Project Nova.”

While the 244-acre plot in Caledonia was backed out of, Microsoft may still look around Southeastern Wisconsin to house more data centers.