The company indicated that the pause could extend for several months as it reviews the project’s scope and considers recent technological advancements.
In an unexpected move, Microsoft has temporarily halted the construction of its $3.3 billion data center in Mount Pleasant. According to Wisconsin Public Radio, the tech giant remains committed to completing the first phase by 2026. However, the timeline for the second phase remains uncertain as the company conducts a design review to assess the impact of emerging technologies on its data center plans.
We have paused early construction work for this second phase while we evaluate scope and recent changes in technology and consider how this might impact the design of our facilities. We anticipate that this process will last months.
According to The Information, the $3.3 billion data center was intended to support OpenAI’s cutting-edge AI developments and serve as a key hub for building a next-generation supercomputer.
Microsoft’s decision to temporarily pause construction, however, comes at an intriguing time—following OpenAI’s recent announcement of plans to invest up to $80 billion in its own data center expansion by 2025 and beyond to advance its AI initiatives.
As part of their multi-billion-dollar partnership, OpenAI is contractually bound to use Microsoft’s computing infrastructure and collaborate closely on AI advancements. However, reports suggest that OpenAI has been seeking to renegotiate the deal, potentially aiming for more computing power at reduced costs.
Meanwhile, some Microsoft executives have voiced concerns over the company’s growing reliance on OpenAI’s AI expertise. A recent report also revealed Microsoft’s plans to integrate next-generation AI models into its Microsoft 365 Copilot service, although these models may not be based on OpenAI’s GPT-4, which Microsoft deemed “too slow and expensive” for Copilot’s performance needs.
While OpenAI CEO Sam Altman remains optimistic about achieving artificial general intelligence (AGI), internal concerns have surfaced over the company’s ability to reach that milestone ahead of its rivals. Staffers have pointed to insufficient computing resources from Microsoft as a potential barrier to progress. By pausing the construction of a critical data center that could enhance OpenAI’s supercomputing capabilities, Microsoft’s decision may delay progress toward the highly anticipated AGI benchmark.
