Class-action lawsuit filed against Microsoft AI data center

(The Center Square) – A group of Sturtevant residents who live near Microsoft’s recently completed data center in Mount Pleasant have filed a class-action lawsuit against the company over what they call “excessive noise” from the data center.

The group is asking for compensatory damages, attorney’s fees and relief from the noise.

The Fairwater data center construction was part of $4.7 billion the company spent to build hyper-scale data centers in the state and it has $20.6 billion in total construction planned.

Microsoft is expected to be the largest beneficiary of a wide-ranging Wisconsin sales tax exemption on everything from construction materials to electricity that is estimated to lose the state $1.5 billion in initial foregone state sales tax from four data center projects, according to a new Legislative Audit Bureau report.

In addition, the state will lose $369 million annually once construction on the projects are complete.

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Wisconsin’s Department of Revenue originally estimated the value of the incentives would be $8.5 million for the full multi-year construction of a facility and $735,000 recurring afterward.

The plaintiffs say that the noise from the data center has forced them to stay inside their homes and not enjoy the outdoors and prevented them from outdoor activities.

The lawsuit estimates that more than 1,000 individuals live within 1.5 miles of the data center and would be eligible to join the class action.

“Defendant intentionally, knowingly, recklessly, willfully, and/or negligently failed to properly construct, maintain, and/or operate the data center,” the lawsuit claims.

The lawsuit says that the company is aware of the noise issues but has failed to do anything about them.

Plaintiff Garret Ostergaard, who has worked for the Mount Pleasant Police Department, said in the lawsuit that he formerly worked third shift but had to move shifts due to the noise and light from the facility impacting his sleep.

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“We hear a constant humming noise while trying to enjoy our outside patio/yard,” Plaintiffs Jason and Amanda Ingle wrote. “(It’s) very annoying. Since the data center construction less people hang outside in the neighborhood now, very sad to see.”

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