Microsoft Flips the Switch in Wisconsin as Shareholder Lawsuit Casts a Shadow Over AI Spending
Published on 06/24/2026 at 11:12 | Redaktion boerse-global.de
Microsoft's sprawling data center in Mount Pleasant, Wisconsin, has finally come online, marking a concrete payoff from its multiyear infrastructure blitz. The facility, built by a workforce of roughly 10,000 over the past two years, began full operations on June 23, 2026 — ahead of schedule. Yet even as the ribbon is cut, a separate legal storm is brewing, with a class-action lawsuit accusing the company of misleading investors about its AI push. Shares, already down nearly 19% this year, remain stuck near €328 — more than 31% below the 52-week peak of €478.10 set last October.
The Wisconsin project was first announced in May 2024 as part of a $4.7 billion regional investment program running through 2028. A second data center next door is already under construction, with foundations, steelwork, and cabling underway, and is slated for completion in 2028. When both are fully operational, Microsoft expects to employ around 800 people on a permanent basis in Mount Pleasant — up from the current 550 full-time roles. The expansion doesn't stop there: a day before the Wisconsin news, Microsoft unveiled plans for a new campus in Pecos, Texas, that will add roughly two gigawatts of capacity over five to seven years and create more than 6,000 construction jobs at its peak.
But the operational milestone is overshadowed by a legal challenge that threatens to dent investor confidence. A US law firm has set an August 11, 2026, deadline for shareholders to step forward as lead plaintiffs in a class action alleging Microsoft overstated the capabilities of its Copilot AI assistant and the growth trajectory of Azure. The suit was triggered by a sharp 10% stock drop in late January, after the company reported that Azure growth had slowed to 39% while AI-related capital spending surged to $37.5 billion in the same quarter. Microsoft has called the claims unfounded and vowed to defend itself in court.
Should investors sell immediately? Or is it worth buying Microsoft?
Operationally, the company's core business remains strong. In the fiscal third quarter ending March 2026, Microsoft posted revenue of $82.9 billion — an 18% increase year-on-year — and operating income of $38.4 billion, up 20%. Cloud revenue climbed 29% to $54.5 billion, and Azure itself rebounded to 40% growth in the most recent period. Yet the market has focused on the cost side: capital expenditures on property and equipment reached $80.1 billion in the first nine months of the fiscal year, nearly 70% higher than the $47.5 billion spent in the same period a year earlier.
Microsoft has the financial firepower to sustain the buildout — it held $78.3 billion in cash and generated $127.5 billion in operating cash flow over nine months. But the dual headwinds of heavy spending and litigation risk have kept the stock under pressure. On Tuesday, shares closed at €329.10 after trading as low as €328.05 earlier in the session. The stock also remains well below its 200-day moving average, a sign that the longer-term trend has turned bearish.
The Wisconsin milestone is a tangible sign that Microsoft's capital outlays are translating into operational infrastructure. With the company's next quarterly earnings due in July, investors will be watching closely for further proof that these investments are starting to generate returns — and for any update on the legal proceedings that could weigh on sentiment until the August deadline passes.
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