Microsoft slams the brakes on $3.3 billion data center — reportedly set to foster development of OpenAI's supercomputer

The company stated the pause might last for months as it evaluates the scope and recent technological changes.

In a surprising turn of events, Microsoft has decided to temporarily pause the construction of a $3.3 billion data center in Mount Pleasant. Wisconsin Public Radio reports the tech giant is still on track to complete the project's first phase by 2026. However, it's unclear when phase two of the project will commence because it's under design review to establish how new technologies will affect the company's data center design.

While speaking to The Register, a Microsoft spokesman indicated:

"We have paused early construction work for this second phase while we evaluate scope and recent changes in technology and consider how this might impact the design of our facilities. We anticipate that this process will last months."

According to The Information, the $3.3 billion data center was supposed to be used by OpenAI to facilitate its sophisticated AI advances and foster the development of a cutting-edge supercomputer.

Interestingly, Microsoft's decision to temporarily pause the construction of the $3.3 billion data center, which could potentially bolster OpenAI's advances in generative AI following the recent announcement of its plans to invest up to $80 billion in building data centers to foster its own AI advances in 2025 and beyond.

As you may know, Microsoft's multi-billion dollar partnership with OpenAI ships with an exclusive clause that limits the ChatGPT maker to Microsoft's computing power and compels them to work closely with the company on new AI advances.

OpenAI has reportedly been trying to renegotiate its deal with Microsoft, perhaps for more computing power at a significantly lower rate. Top Microsoft executives have also raised concern over the tech giant's overreliance and dependence on OpenAI for its AI tech and smarts.