Microsoft (MSFT) to make $3.3 billion investment in Wisconsin, aiming to turn the U.S. state into a center of AI innovation and enhance its economic growth.

“Wisconsin has a rich and storied legacy of innovation and ingenuity in manufacturing,” said Brad Smith, Vice Chair and President of Microsoft. “We will use the power of AI to help advance the next generation of manufacturing companies, skills and jobs in Wisconsin and across the country. This is what a big company can do to build a strong foundation for every medium, small and start-up company and non-profit everywhere.”

The investment would primarily focus on the development of cloud computing and AI infrastructure, creation of the country’s first manufacturing-focused AI co-innovation lab, and establishment of AI skilling initiative to impart training to local residents.

Speaking about the investment, Governor Tony Evers commented, “Microsoft is a blue-chip corporation that recognizes the strength of Wisconsin’s workers, infrastructure, economy, and our quality of life. Microsoft has chosen to locate and invest here because they know the future is here in Wisconsin.”

The tech company stated that the initiative would be launched in four parts to ensure long-term economic benefits and job opportunities.

During the first part, Microsoft would develop a data center campus in Mount Pleasant, and a Data Center Academy with the help of Gateway Technical College. Following this, the company would establish a manufacturing focused AI Co-Innovation Lab on the campus of the University of Wisconsin-Milwaukee, facilitating connection between the state’s businesses and Microsoft in the second part.

In the third part, the Redmond-based company would focus on upskilling residents about generative AI by 2030 with the help of United Way Wisconsin, United Way Racine, and other community partners. Also, it would team up with Gateway Technical College to train and certify local AI software developers.

During the final part, Microsoft, in partnership with the Racine Unified School District, would support Girls in STEM and Summer Youth Employment Program. The company would also offer Equity Through Technology and STEAM Grant Funds to help the community.

Moreover, Microsoft has collaborated with National Grid to build a new 250 megawatt solar project in Wisconsin, which would start operation in 2027.