05/08/2024 | Press release | Distributed by Public on 05/08/2024 03:30
Six years ago, the prior administration touted a $10 billion investment by Foxconn that never materialized - now Microsoft will build a new AI datacenter on the same land, powering industries of the future in Wisconsin
Today, President Biden will travel to Racine, Wisconsin - the same location as the failed Foxconn investment that the prior administration visited six years ago - to showcase a community at the heart of his commitment to invest in places that have been historically overlooked or failed by the last administration's policies. President Biden will announce a $3.3 billion investment by Microsoft to build a new artificial intelligence (AI) datacenter in Racine, creating 2,300 union construction jobs and 2,000 permanent jobs over time. Microsoft will also provide skilling opportunities for thousands more Wisconsinites in the digital economy. The datacenter will be built on the same land as a failed $10 billion investment from Taiwanese electronics manufacturer Foxconn six years ago, which left behind Wisconsin residents and workers.
President Biden's Investing in America agenda is growing the economy from the middle-out and bottom-up, giving Americans more breathing room, and unleashing hundreds of billions of dollars of private sector investment in industries of the future, including AI, clean energy, semiconductors, and more. Breaking from failed trickle-down policies of past administrations, President Biden's agenda is bringing innovation hubs to every corner of the country. President Biden is delivering on his promise to create good jobs that will have a lasting impact on communities and families.
Delivering on promises for Racine workers and families
From after the Civil War through the 1960s, manufacturing powered growth in Racine, Wisconsin. At its peak, manufacturing employed roughly half of Racine's workforce, but over the years, trickle-down economics wore that away. Manufacturers shut down and shipped jobs overseas.
Six years ago, the prior administration touted a $10 billion investment by Foxconn that would purportedly create 13,000 manufacturing jobs in Racine. But after 100 homes and farms were bulldozed to make way for the manufacturing plant and over $500 million in taxpayer dollars were invested to prepare the site, no such investment materialized. Foxconn abandoned plans to manufacture LCD screens in the state and created only a fraction of the promised jobs. In fact, in the four years prior to President Biden taking office, 1,000 manufacturing jobs left Racine, and 6,000 manufacturing jobs left Wisconsin.
President Biden promised that unlike his predecessor, he wouldn't leave communities like Racine behind. Since President Biden took office, nearly 4,000 jobs have been added in Racine - a third of them in manufacturing - and 177,000 jobs have been added in Wisconsin. With new business applications up 68% from pre-pandemic levels, Racine has experienced some of the strongest new business growth in the state under President Biden's leadership. And, President Biden's Investing in America agenda is attracting industries of the future, investing in workforce pipelines that leave no community behind, and helping Racine power the AI and innovation economy.
Building an AI ecosystem in Wisconsin
On the land left vacant by Foxconn's failed investment in Racine County, Microsoft will invest $3.3 billion in a new datacenter. Microsoft is committed to creating good-paying jobs with growth pathways and comprehensive benefits such as paid family leave. Microsoft will pair its datacenter investment with a commitment to investing in innovation and workforce in Racine and statewide. Microsoft will partner with Gateway Technical College to develop a Datacenter Academy that trains 1,000 Wisconsinites for datacenter and STEM roles by 2030, and will employ up to 2,000 people in permanent roles at its Racine facility. And, Microsoft will build a Co-Innovation Lab in southeast Wisconsin, as well as team up with the startup accelerator Gener8tor to train 1,000 business leaders to adopt AI in their operations, so that Wisconsin manufacturers can seize AI's promise. Together, these investments will position the industrial heartland to lead the way in industries of the future.
President Biden has acted boldly to ensure America leads in AI innovation, driven by communities like Racine. The President signed a landmark Executive Order on AI last year that directed actions to provide AI entrepreneurs access to technical assistance and resources, help small businesses commercialize AI breakthroughs, and expand grants for AI research in vital areas like healthcare and climate change. In January, through the new Regional Innovation Engines (NSF Engines) program, the Biden Administration announced 10 awards for place-based research and development partnerships, including ones with a focus on advancing AI. And, President Biden has taken bold steps to ensure workers and organized labor are front and center in the growth and development of AI. The President's landmark Executive Order on AI directed new protections for workers, including the release of guidance to assist federal contractors and employers with complying with worker protection laws as they deploy AI in the workplace. As part of Microsoft's efforts to build an AI ecosystem in Wisconsin, their training programs will help introduce workers to AI skills and technologies, helping them access and benefit from the AI economy.
Investing in Wisconsin and Investing in America
Today's announcement is part of President Biden's broader effort to invest in industries of the future and American workers in communities across the country. Already, his Investing in America agenda has unleashed $866 billion in private sector investments in clean energy and manufacturing, and the Administration has announced 51,000 infrastructure projects across the country. These investments are creating an environment where companies are building lasting relationships in communities like Racine. Under the President's agenda:
Giving Racine families breathing room
In addition to keeping his promise to leave no community behind, President Biden's agenda is lowering costs for working families in Racine and across Wisconsin, including by:
Congressional Republicans have no plan to lower costs. In fact, their plan raises cost for working families in Wisconsin by:
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