Microsoft has acquired hundreds of acres of land outside Grand Rapids, Michigan.
It has also reportedly dropped plans to develop a site in Ohio, and is moving forward with other developments in Virginia and Finland.
Microsoft buys land outside Grand Rapids
Crain’s reports Microsoft has acquired 316 acres of property in Gaines Charter Township in Kent County, south of Grand Rapids.
The site, on the corner of Patterson Avenue and 76th Street, was acquired from furniture seller Steelcase Inc. for $45.3 million for a potential data center development.
Microsoft has not shared plans for the site and township planning officials said they are yet to meet with Microsoft around any development project in the area.
Randy Thelen, president and CEO of the economic development organization at The Right Place Inc., told Crain’s that the company helped Microsoft assess the property for a potential data center.
“The Right Place is pleased to have helped Microsoft Corporation assess a 315-acre industrial parcel in Gaines Charter Township for a potential data center. The opportunity ahead with Microsoft fits into our 10-year tech strategy to develop the greater Grand Rapids region into a leading tech hub in the Midwest,” Thelen said in a statement to Crain’s Grand Rapids Business. “With one of the leading tech companies in the world taking notice, we’re well on our way there.”
Michigan is not traditionally known as a major data center hub. Switch has a large campus in the city, while US Signal and Hypercscale Data (previously Sentinum/Ault Alliance) are also present in the region. Detroit also has several other providers present.
Microsoft drops Perry Township plans
Microsoft has dropped plans to develop one site in Ohio.
Lima Ohio reported Microsoft is no longer interested in building an expansive data center in Perry Township. The company has confirmed the news in its Local blog.
“After careful consideration, Microsoft has decided not to pursue the site on Breese Road. We appreciate the community’s engagement as we navigated our decision-making process,” the company said in an October 16 update.
Reports of the project in Stark County first surfaced in June, with Microsoft confirming it was the Fortune 500 company behind the development in August.
The proposed project would have seen as much as 350 acres along state Route 75 between Breese and Hume Road becoming a data center campus. Microsoft had said up to six buildings could have been developed.
Microsoft had previously said that factors attracting Microsoft to Perry Township and the Lima region included “customer demand, the availability of suitable land, access to power and fiber optics, a quality workforce, and supportive local partners.”
Cindy Leis, president and CEO of Allen Economic Development Group, delivered the news to township residents and officials last week after meeting with Microsoft officials.
“The Microsoft project team’s top three representatives indicated that their boss’s boss, in upper management at Microsoft, made some internal analysis on all the sites being considered,” Leis said Wednesday. “The one in Perry Township didn’t make the cut.”
Microsoft breaks ground in Manassas, looks to develop in Finland
Microsoft has started work on a data center on Hansen Farm Road in Manassas, Prince William County, Virginia.
A recent update said data center construction actually began in May 2024.
The general contractor, Clark Technologies, a division of Clark Construction, is preparing the site by excavating and crushing rock. Early earthworks construction will continue through Fall 2024.
Construction is expected to continue for 18-24 months. The scope of the development hasn’t been shared.
In Finland, the company is moving forward with plans to develop a data center in Vihti.
“The project for construction of Microsoft’s Vihti data center has begun,” Microsoft said in a recent open house event invite.
Microsoft first announced plans for a Finnish cloud region in March 2022. Microsoft is also planning to build data centers in Kirkkonummi and Espoo.
The company acquired the Vihti site in the Rosti Business Park for €12.3 million ($13.3m) last year. Initially comprising one building, the Vihti site could total up to four facilities. The first could go live as soon as 2026.
