Microsoft pledges billions in new developments in Mount Pleasant. Will purchase land that includes some of Foxconn site.

Less than a year after inking a deal to build a $1 billion data center in Mount Pleasant's sprawling Wisconsin Innovation Park, Microsoft is ready to make an even bigger investment and a significant increase in its Wisconsin footprint.

Regional economic development officials on Friday said Microsoft plans to buy the remainder of the parcel on which it is building the first of two previously announced buildings as well as parcels west and north of the site in what's known as Areas II and III in the tax incremental financing district that was created to fund the business park.

Those parcels were controlled by Foxconn, which is giving up options it held on the land. Microsoft will also acquire about 400 acres of privately-owned farmland in Area II.

In all the company would purchase 1,030 additional acres, pending approval by the village and Racine County.

Foxconn sent shockwaves through the state when it announced Wisconsin was among the places the technology giant was considering expanding to in 2017.

The news prompted lawmakers to draft a multi-billion dollar subsidy package in an effort to lure Foxconn to Wisconsin, which the company ultimately accepted.

Foxconn originally promised to build a Generation 10.5 facility that would manufacture large LCD screens. The project was to be an investment of up to $10 billion that would deliver up to 13,000 jobs. Those plans never came together and today the Foxconn operation is much smaller, employing about 1,000 people.

The agreement calls for Microsoft to guarantee an additional property valuation of $1.4 billion by 2028.

“Wisconsin’s strengths in workforce, infrastructure, and educational opportunities make it a great place for Microsoft to invest and grow our cloud services. We thank the Governor for his leadership and look forward to continuing to bring positive economic impact to the state and its residents,” said Microsoft Vice Chair and President Brad Smith said in a statement.

Alan Marcuvitz, the attorney for Mount Pleasant, said the land sale and tax proceeds from Microsoft's building commitments further ensure the village will be made whole on the debt it incurred as it assembled land and prepared it for development. That includes revenue from the sale of the land and tax payments that Microsoft will make on the land and its buildings.

The terms of the land purchase will be presented to the village board on Monday and to the Racine County Board on Tuesday. The village board is expected to vote on the deal Nov. 27, followed by the county board a day later.

Microsoft in May closed its $50 million purchase of 315 acres of land adjacent to the Foxconn Technology Group property. The sale of the land allowed Microsoft to quickly gain approvals for construction and begin preparing the site for construction of the first of two data center buildings. Microsoft last week said the contractor, Walsh Construction, would begin laying the building's foundation this month.

The company expects construction of the first building to be complete in late 2026.

This article originally appeared on Milwaukee Journal Sentinel: Microsoft to invest billions in Racine County, including Foxconn site