Microsoft Expands Michigan Data Center Footprint with New Campus Plans

Microsoft Expands Michigan Data Center Footprint with New Campus Plans

January 8, 2026

Microsoft is advancing its digital infrastructure strategy in the Midwest with plans to develop new data center campuses in two Michigan townships, signaling a significant expansion of its cloud and AI service capacity in a region gaining prominence for hyperscale investment. The move underscores the escalating demand for compute resources driven by artificial intelligence and cloud adoption, pushing major technology firms to secure land and power in strategic secondary markets.

According to recent disclosures and local government filings, the tech giant is behind a proposed 235-acre data center campus in Lowell Township, Kent County, and is planning another facility on a 272-acre plot it purchased in 2024 in Dorr Township, Allegan County for over $48 million. Both locations are situated near Grand Rapids, a growing hub for data center activity in western Michigan.

The Lowell Township project, filed under the entity Franklin Lowell LLC, was initially withdrawn on December 18 following community opposition. In a letter to the township, Microsoft stated it had asked to pause the rezoning process to engage with residents, noting it is in the "preliminary stage" of planning and does not have "all the answers yet." The company emphasized its commitment to transparency, saying, "This letter is meant to begin an open conversation, share who we are, and outline what we would like to accomplish together in the future."

In Dorr Township, where Microsoft plans to develop approximately 128 acres of its land, local officials have indicated the commercially zoned parcel permits data center use. Following a township board meeting where residents raised concerns about infrastructure impacts, a Microsoft representative reiterated the company's goal to be water positive by 2030 and assured that the facility would not generate constant traffic.

Concurrently, a separate Microsoft proposal for a 316-acre campus in nearby Gaines Township, Kent County, has been temporarily put on hold. A rezoning request for that project, purchased in October 2024, was postponed after a public meeting in December attracted a crowd exceeding the venue's 250-person capacity. The matter is now scheduled for review in February at a larger location.

This cluster of developments around Grand Rapids marks a strategic diversification for Michigan's data center landscape, which has historically been concentrated around Detroit. The state has seen increased interest from hyperscalers, including other proposed large-scale projects, positioning it as a competitive destination for capital-intensive digital infrastructure essential for the next generation of computing.

Source: datacenterdynamics