Microsoft Buys Wisconsin Pumpkin Farm for $76 Million

Microsoft's Strategic Acquisition

Microsoft has completed the purchase of farmland in Wisconsin for $76 million, where it plans to build a data center campus. The tech company has been on quite a spending spree in 2023, as Microsoft officially acquired Activision Blizzard in the fall for $68.7 billion. Just in the gaming sector alone, Microsoft has been aggressively looking to buy - purchasing Bethesda's parent company, ZeniMax, back in 2021.

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Foxconn looked to purchase the same land in Mount Pleasant, Wisconsin, but the owners decided to hold out for a better deal – originally being offered about a third of what they eventually accepted from Microsoft. Foxconn, which manufactures electronic devices from smartphones to gaming consoles, announced it would be building its first US factory in Wisconsin back in 2017 and employing 13,000 workers. Since then, however, these plans have been significantly scaled back. The tech manufacturer came with some serious baggage as Foxconn admitted to using child labor just over a decade ago, but the state was still hopeful about the 13,000 jobs that now seem too good to be true.

More than six years after Foxconn promised to build its massive factory in Wisconsin, Microsoft is purchasing all sorts of land throughout Mount Pleasant. Milwaukee Business Journal reports the company purchased a pumpkin farm, originally eyed by Foxconn, for $76 million to build a new data center campus. This is in addition to the 641 acres of land Microsoft has already purchased, all together totaling $99.7 million.

Impact on the Local Community

On paper, the deal also looks promising for the state of Wisconsin as Microsoft looks to invest back in the local community through restoration efforts. Still, the 200 employees Microsoft intends to initially hire, even along with the 460 the company hopes to add over time, pale in comparison to the 13,000 jobs the Foxconn plant initially promised.

As part of the data center, Microsoft thinks Wisconsin will be a good location to grow its cloud services. The cloud has become a tech buzzword in recent years, and it's no different in the gaming industry. Microsoft has sparked a race for cloud gaming dominance thanks to the company's various advancements with Xbox Cloud Gaming.

Because of services like Game Pass and Cloud Gaming, Microsoft uses a different metric for success than its competitors, Sony and Nintendo. It's not about selling consoles; it's about gaining subscribers. Rather than move physical gaming hardware, which typically sells at a loss, or at best, a small profit, Xbox hopes to put Game Pass on as many screens as possible. Microsoft made another recent stride in this area, adding Xbox Cloud Gaming to Meta Quest VR headsets.

Strategic Expansion and Future Plans

Microsoft's recent acquisition of farmland in Wisconsin and the planned construction of a data center campus signify the company's strategic expansion and future plans in the region. The move also reflects Microsoft's commitment to investing in cloud services and gaming, two key areas of growth in the tech industry.

The company's focus on cloud services and gaming is evident in its efforts to compete in the cloud gaming market and shift its metric for success from hardware sales to subscriber growth. The addition of Xbox Cloud Gaming to Meta Quest VR headsets demonstrates Microsoft's dedication to reaching a broader audience and expanding its gaming services to new platforms.

As Microsoft looks to establish its presence in Wisconsin, the company's investment in the local community and plans for job creation will be closely monitored. The impact of this acquisition on the state's economy and technological infrastructure will be a key aspect to watch as Microsoft's future plans unfold.