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RACINE, Wis. — Microsoft said Thursday that it will allocate $4 billion to build a second data center in Wisconsin. The first one will come online in early 2026, with the software company spending $3.3 billion on it.

The first Wisconsin data center, in nearby Mount Pleasant, will house hundreds of thousands of Nvidia Blackwell GB200 graphics processing units that are capable of handling artificial intelligence models, Brad Smith, Microsoft's president and vice chair, said at a town hall meeting.

Cloud infrastructure providers are racing to build capacity to meet the needs of companies that want to run AI models. More than 700 million people use OpenAI's ChatGPT, which draws on Microsoft's Azure

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