Biden plugs $3 billion Microsoft AI investment at Wisconsin site where Trump-touted Foxconn plant flopped

By Victor Reklaitis

'Foxconn turned out to be just that - a con,' Biden says, as White House race hinges on swing states and economic concerns

President Joe Biden on Wednesday talked up a Microsoft Corp. plan for a data-center complex in Wisconsin's Racine County, while also criticizing GOP presidential nominee Donald Trump's economic record in that part of the swing state.

Biden noted that then-President Trump visited Racine County six years ago to tout a $10 billion investment by electronics manufacturer Foxconn that never fully materialized. Trump promised the Foxconn facility would be the "eighth wonder of the world," and the Republican took part in a groundbreaking ceremony in 2018 that featured golden shovels.

"They dug a hole with those golden shovels, and then they fell into it," Biden said.

"Foxconn turned out to be just that - a con," Biden said.

Redmond, Wash.-based Microsoft plans a $3.3 billion investment to build a new artificial-intelligence data center, creating 2,300 union construction jobs and 2,000 permanent jobs over time, according to the White House. The company is also expected to partner with a local college to develop a "data-center academy" that trains 1,000 Wisconsinites.

Microsoft (MSFT) will be using land that it bought in the village of Mount Pleasant last year and which had been meant for the megascale Foxconn (TW:2354) facility after the Taiwan-based company, known as a major supplier to Apple Inc. (AAPL), fell far short of fulfilling its 2017 promise to build a plant employing up to 13,000 workers.

From the archives (January 2019): Foxconn is reconsidering plans for Wisconsin plant touted by Trump and then-Gov. Scott Walker

Also see (September 2017): Wisconsin's Republican governor approves $3 billion incentive deal for Foxconn factory

Background (July 2017): Foxconn's history of broken promises casts a shadow on Wisconsin news

Foxconn said in a statement Wednesday that it "continues to grow with its community in Wisconsin," and it's "proud of the over 1,000 men and women who work at Foxconn Wisconsin." The company added that it has invested about $1 billion in the state and has been Racine County's largest taxpayer in recent years.

At Wednesday's event featuring Biden, Microsoft President Brad Smith stepped up to the microphone just before the president's address and offered praise for the current administration.

"Everything that we are doing here in Racine County, Wis., is also benefiting directly from the work of this White House and this president over the last four years," said Smith, a Wisconsin native.

Biden said the Trump administration frequently promised that an "infrastructure week" was just around the corner, while the Biden team has held "infrastructure week for four years."

The Microsoft executive praised the Biden administration for its role in enacting the 2021 bipartisan infrastructure law, 2022 bipartisan Chips and Science Act and the Democrats' Inflation Reduction Act of 2022.

Biden's visit to the swing state of Wisconsin comes as some polls have indicated that swing-state voters may trust Trump more than the Democratic president when it comes to handling the economy. A Politico-Morning Consult poll about four major Biden-era laws has found that voters don't know much about them.

The Trump campaign didn't respond to a request for comment.

The Milwaukee Journal Sentinel first reported the news about Wednesday's event, as well as the opportunity for Biden to offer a contrast with the Foxconn project.

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-Victor Reklaitis

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05-09-24 0814ET

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