Microsoft builds AI super factory in Atlanta as part of data center expansion - WSJ

Published 12/11/2025, 17:18
© Reuters.

Investing.com -- Microsoft is unveiling a new AI "super factory" in Atlanta on Wednesday as part of its plan to double its data center footprint over the next two years, according to a report from the Wall Street Journal.

The Atlanta site belongs to Microsoft’s Fairwater network of artificial-intelligence centers, a new class of hubs built specifically for AI training. The facility will house hundreds of thousands of Nvidia graphics processing units and feature dedicated high-speed connections to other Fairwater locations.

Major AI companies including OpenAI, France’s Mistral AI, and Elon Musk’s xAI are among Fairwater’s customers. Microsoft will also use the site for training its own proprietary models.

Microsoft invested more than $34 billion in capital expenditures during its fiscal first quarter and plans to increase its total infrastructure investments over the next fiscal year. The company is part of a tech industry trend that will see companies collectively invest about $400 billion in AI efforts this year, driven by high demand for AI computing capacity.

The company claims its Fairwater data centers achieve greater efficiency in both speed and power consumption. The two-story design allows for better networking and reduced latency, while a novel liquid-cooling system enables GPUs to be placed close together.

The Atlanta complex covers more than 1 million square feet across 85 acres. Microsoft says the cooling system uses approximately the same amount of water annually as 20 average U.S. households, though data centers generally require significant energy and water resources.

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