Microsoft Revealed As Controversial Data Center Developer In Michigan Township

Microsoft Corporation (NASDAQ:MSFT) has come forward as the company behind a contentious $1 billion data center project in a Michigan township, a revelation that follows local pushback and speculation.

Cloud Expansion Plan Draws Local Scrutiny

The Satya Nadella-led company’s cloud infrastructure team was disclosed as the entity interested in a 237-acre plot near Interstate 96 in Lowell Charter Township. The township, home to approximately 6,500 residents, is situated 20 miles southeast of Grand Rapids.

In a letter made public on Wednesday, Microsoft said it was reaching out after noticing the community's desire for more information about the proposal and emphasized the importance of being transparent about its plans going forward.

 "We asked the seller to pause the rezone process so that we could spend time with the community early this year and share more about our potential long-term plans before we proceed,” Microsoft said.

The disclosure followed weeks of speculation about the company's involvement with Franklin Partners on the controversial project. The Illinois-based developer had earlier said it was working with a U.S.-based national firm to build a data center on the site. The township said the project could bring $500 million to $1 billion in investment over three to five years, with the planning commission scheduled to meet again on January 12.

Residents raised concerns over the swift rezoning of the land, especially about the energy demands of the facility, prompting planners to postpone a public hearing on the proposal during a December commission meeting. After the meeting was canceled, local officials temporarily paused the project.

Microsoft’s Recent Data Center Investments

Microsoft’s involvement in this project comes amid the company’s significant expansion in the cloud and artificial intelligence (AI) sector.

In November 2025, the tech giant announced a $10 billion investment to build an AI data center in Portugal. This was followed by a massive AI “super factory” in Atlanta to power OpenAI and Elon Musk‘s xAI. In December 2025, Microsoft committed billions of dollars to expand its cloud and AI footprint in Canada.

Microsoft holds a momentum rating of 45.09% and a quality rating of 82.31%, according to Benzinga’s Proprietary Edge Rankings. Click here to see how it compares to other leading tech companies.

Price Action: Over the past year, Microsoft stock climbed 13.92%%, as per data from Benzinga Pro. On Wednesday, it rose 1.07% to close at $483.64.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.