Biden announces $3.3B AI investment by Microsoft at scaled-back Foxconn site once touted by Trump

Updated

President Joe Biden traveled to Wisconsin, on Wednesday to announce a $3.3 billion investment by Microsoft to build a new artificial intelligence data center.

The data center will be built on same property of a planned $10 billion Foxconn facility that former President Donald Trump had touted during his presidency as a major revival of tech manufacturing in the U.S.

But those plans never fully materialized. The Taiwan-based electronics manufacturer later drastically scaled back plans for the factory that Trump once called “the eighth wonder of the world,” reducing the number of new jobs from 13,000 to the roughly 1,000 spots that are filled now, the Milwaukee Journal Sentinel reported.

During remarks Wednesday at Gateway Technical College in Sturtevant, Racine County, Biden took aim at Trump multiple times for his "failed promises" on Foxconn, although he didn't mention his predecessor by name.

Biden said the failed Foxconn project during Trump's presidency left Wisconsin residents and workers behind, adding that it led to the bulldozing of 100 homes and farms and wasted hundreds of millions of taxpayer dollars.

“They dug a hole with those golden shovels and then they fell into it," Biden said.

"Foxconn turned out to be just that — a con. Go figure," he added.

Joe Biden during a campaign event in Scranton, Pa. (Hannah Beier / Bloomberg via Getty Images file )
Joe Biden during a campaign event in Scranton, Pa. (Hannah Beier / Bloomberg via Getty Images file )

Biden touted his administration’s "investing in America" agenda, which includes commitments to rebuilding roads and bridges, developments in clean energy and the creation of $866 billion in private sector investment nationwide as part of efforts to revitalize American manufacturing.

Biden hailed Microsoft’s investment in the AI data center as a “transformative” investment in infrastructure, especially to the people of Racine, who he said will have the opportunity to receive training for new high-paying jobs that don’t require a four-year college degree.

“During the previous administration, my predecessor made promises which he broke more than kept, left a lot of people behind in communities like Racine,” he said. “On my watch, we make promises and we keep promises, and we leave no one behind.”

Microsoft’s investment in the artificial intelligence data center is expected to employ 2,300 union construction workers and create 2,000 permanent jobs over time, the White House said, adding that nearly 4,000 jobs have been added in Racine, with one third of those in manufacturing, and 177,000 in Wisconsin since Biden took office.

Microsoft also plans to partner with Gateway Technical college in Wisconsin to develop a training facility for 1,000 residents to prepare them for datacenter and STEM roles by 2030, with the aim of employing up to 2,000 people in permanent roles at its Racine facility, the White House said. The tech giant will also invest in training 1,000 business leaders to adopt AI in their operations.

The Trump campaign did not immediately respond to a request for comment.

Trump has repeatedly claimed that the economy during Biden’s presidency has been worse compared to his time in office, often pointing to rising inflation and interest rates in recent months.

Biden and administration officials have recently traveled to key battleground states to highlight his economic record, such as legislation investing in infrastructure and clean energy, which the president has said leads to the creation of more well-paid jobs based in the U.S.

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