[12.15.2025] Wisconsin Construction Projects to Watch in 2026 (The Daily Reporter)

It’s been a busy year for the Wisconsin construction industry, with dozens of projects starting in 2025 and carrying into 2026. Next year will involve hundreds of thousands more square feet of housing, offices and industrial space to be built, billions of dollars invested in the state’s growing number of data centers and miles of road to be repaired and expanded for thousands of motorists.

Data center construction was one of the highest-value projects that firms competed for in 2025, reflecting wider trends in the U.S. as tech giants pour more money into large computing storage facilities to advance artificial intelligence. A total of 58% of respondents in Wisconsin who worked on data centers said they expected the dollar value of projects to rise in 2025, according to a 2024 survey by the Associated General Contractors.

Data centers were followed by bridge and highway, multifamily residential and other health care projects where firms predicted would rise in value, 40%, 38% and 38% respectively, the study showed.

That’s reflected in this editorially selected list of projects to watch in 2026. Aside from data centers, Wisconsin will see the beginning of major road, energy and housing projects in 2026.

Microsoft data center in Mount Pleasant

Microsoft started construction of its $3.3 billion data center in Racine County in 2024, but work is expected to continue after the tech company announced another billion-dollar investment.

The company will build a $4 billion data center focused on advantaged artificial intelligence with a buildout over the next three years, which will have similar size and scale of the initial facility. Microsoft’s total investment in Wisconsin is around $7.3 billion.

Contractors are wrapping up the first phase data center in Mount Pleasant, which is set to open in early 2026.

In September, Microsoft announced it will build a $4 billion advanced artificial intelligence data center in Mount Pleasant over the next three years. The facility will be similar in size and scale to the initial $3.3 billion facility set to be operational in 2026.

At its peak, Microsoft employed more than 3,000 construction workers during daily peak activity, including electricians, plumbers and pipefitters, carpenters, structural steel and iron workers, concrete workers and Earth movers, company officials said.

Once the first data center is fully operational, it will have around 500 full-time employees. That number will grow to around 800 when the second data center is complete.

Phillip A. Levy Engineering Hall

The Phillip A. Levy Engineering Hall, the replacement for the University of Wisconsin-Madison’s engineering hall, is a multi-year, multi-phase project that will see additional work in 2026. The state bid out a mechanical, engineering and plumbing package worth more than $89 million for the next phase. Mobilization for MEP work will start in December 2025.

Madison-based Findorff is the construction manager for the more than $400 million, 395,000-square-foot facility. The project calls for an eight-story building with a mechanical penthouse, modern classrooms and instructional laboratories, research laboratories, shared collaboration and support spaces, and offices.

A third bid package for finishes, doors and windows was shared in November. The existing 1410 Building has been demolished and foundation work was scheduled to start in November as well.

The architectural and engineering team includes Continuum Architects + Planners, SmithGroup and Ring & Duchateau.

Northwestern Mutual North Office

Construction on Northwestern Mutual’s North Office is rapidly approaching completion as the insurance provider plans to move more than 1,000 employees from its Franklin campus to downtown Milwaukee.

Gilbane and CG Schmidt will deliver a 540,000-square-foot conversion of the previous North Office, built in the 1990s, updated to modern standards and to match the look of the Tower and Commons. The $500 million project involved demolition of the interior and exterior of the 18-story building, expanding the floorplates and placing a glass exterior like its sister office.

The companies will also build a lobby and pedestrian plaza over a former part of Cass Street, which will provide some ground engagement opportunities and conveniences for pedestrians.

Demolition of the interior and exterior started in early 2024. The building is expected to be fully occupied in 2027.

Interstate 94 East-West Project

Early work has started on the Interstate 94 East-West project, a highway expansion project led by the Wisconsin Department of Transportation and the Federal Highway Administration, to expand a 3.5-mile stretch of highway from three lanes in each direction to four to create an eight-lane highway.

Work has already started on the west leg of the interchange under contracts worth hundreds of millions of dollars. The meat of the project will take place between 70th Street and 16th Street in Milwaukee County, and WisDOT will also replace the stadium interchange with a diverging diamond interchange.

The highway was originally built in the early 1960s; the project will modernize the corridor by replacing aging infrastructure, improving safety and alleviating congestion, transportation officials said.

In March 2024, the project cost was estimated to be around $1.74 billion.

The I-94 East-West corridor carries between 158,000 and 178,000 vehicles each day, WisDOT officials said.

Meta data center in Beaver Dam

After months of acquiring land, Meta revealed itself as the end user of a $1 billion, 500-acre data center campus in Beaver Dam. Mortenson is tasked with building the data center with additional opportunities for Wisconsin contractors and subcontractors.

The project is expected to have more than 1,000 workers on site at peak construction. The data center is expected to open in 2027 and support 100 operational jobs.

The data center campus will be more than 700,000 square feet and buildings will be designed to achieve LEED Gold certification. Electricity use will be matched with 100% clean and renewable energy.

This will be Meta’s 30th data center, company officials said. The company will also donate $15 million to Alliant Energy’s Hometown Care Energy Fund to help cover home energy costs for local families in need.

Paris Natural Gas Plant

The Public Service Commission this year approved a 128-megawatt natural gas plant in the town of Paris in Kenosha County, setting the stage for a construction project that will involve up to 5,000 people over the next five years.

The project will feature construction of seven reciprocating internal combustion engines, known as RICE, which can be started and stopped quickly. It’s part of a larger strategy for We Energies to increase energy capacity to keep up with heavy data center and manufacturing projects.

The Paris project includes the construction of seven reciprocating internal combustion engines, known as RICE, which can be started and stopped quickly.

Paris RICE will cost at least $300 million to build. Construction was scheduled to begin in 2025.

Oak Creek Power Plant

Part of a next wave of We Energies natural gas projects, the project will convert the Oak Creek Power Plant from burning coal to natural gas for electricity. The facility first went online in the late 1950s, and the project calls for conversion of its coal-fired generating units. The generating site occupies 1,000 acres along Lake Michigan and is 20 miles south of Milwaukee.

Like the Paris RICE project, a labor pool of up to 5,000 workers will work in Oak Creek and Paris as they ebb and flow over the next half-decade.

The initial project cost was around $246 million and will be paired with a liquefied natural gas storage project that will cost around $456.3 million. Combined with the Paris RICE project, construction of natural gas in Racine and Kenosha counties will cost more than $1 billion

100 East

Klein Development and John Vassallo, developers based in Milwaukee, are looking to convert the former 100 East office building into more than 300 apartments in downtown Milwaukee. The property was half-vacant when developers bought it in 2023, and now they are waiting for the remaining leases to expire before launching into full construction.

The project will feature 373 housing units, 75 of which will be reserved for those making up to 100% of the area median income. Because the building offers units lower than the area rate, the project was considered for tax increment financing through the city of Milwaukee.

The $165 million project will be financed through different funding sources including a mortgage, historic tax credits, developer equity and a U.S. Department of Housing and Urban Development Loan. The project is expected to be completed in late 2027 or early 2028.

If approved, 100 East will use a $14.4 million developer-financed tax increment financing district.

Milwaukee-based Oxeland Group and Madison-based Stevens Construction were named construction partners.

State Street Campus Garage

The city of Madison and Mortenson Development are leading a project to turn the aging State Street Campus Garage into a new parking structure with a 12-story student housing tower added on. In January, Stevens Construction finished the concrete parking garage with more than 400 spaces. Mortenson started construction of the housing element with 263 apartments, and the two contractors will work side-by-side to complete the project in mid-2026.

Vantage Data Centers in Port Washington

In October, it was revealed that OpenAI and Oracle were the investors behind a 2,000-acre artificial intelligence data center campus west of Interstate 43 in Port Washington. Led by Denver-based Vantage Data Centers, plans call for four data center buildings on 500 acres with future phases planned.

It’s part of a plan to invest $500 billion and add 10 gigawatts of capacity to AI-focused data centers across the country after OpenAI and Oracle formed their partnership. The Wisconsin campus, called “Lighthouse,” is expected to add a gigawatt of AI capacity.

The Wisconsin Building Trades Council is a project partner, and the developer will fully rely on local union labor, officials said. There will be more than 4,000 construction workers on site during peak work, and the project will be complete in 2028. Site preparation work began in late December.

In addition to construction jobs, officials said the facility will create more than 1,000 long-term jobs.

The major project players are national firms such as Turner, McCarthy, Whiting-Turner and Weitz. Local contractors, subcontractors and labor organizations are expected to participate in the Lighthouse project.

John Nolen Drive

 The city of Madison in November started the second phase of construction of John Nolen Drive, a multi-year project that will change the face of downtown Madison along Lake Monona.

The project calls for reconstructing John Nolen Drive and six bridges that span the causeway, officials said. The city will install a raised median and a curb and gutter to narrow traffic lanes and calm speeds, officials added.

The project was 10 years in the making and progressed through studies, commissions and community engagement. The project planning started in 2021 and received federal funding in 2023. It coincides with a planned overhaul of the Lake Monona waterfront.

Nature and Culture Museum of Wisconsin

Mortenson is racing to complete the exterior of the future Nature and Culture Museum of Wisconsin, a $240 million, five-story public museum that will replace the Milwaukee Public Museum. The museum is located at Sixth and McKinley near Milwaukee’s Deer District and interior work will start as soon as the last precast concrete exterior panel is locked into place.

The project is on track to open in early 2027 and is supported both by Milwaukee County and state of Wisconsin funds, as well as numerous donations. Mortenson built five stories and a parking garage and will build a public plaza in later stages.

The museum is meant to replace the older public museum, which was built in the 1960s, after crumbling conditions were reported. Milwaukee County is currently discussing how the space will be used in the future.

The project also includes goals for local workforce, women- and minority-owned businesses and an emphasis on local businesses and suppliers. ALLCON, a women-owned firm based in Butler, will build a 4,000-square-foot classroom and retail space on the first floor, cementing the project’s commitment to local companies.

Eli Lilly and Co.

Indiana-based Eli Lilly and Co. announced a $3 billion expansion of its facility in Kenosha County. The move will bring 750 jobs to the area and thousands of construction jobs.

Construction is expected to start in 2026 at the former Nexus Pharmaceuticals building in Pleasant Prairie.

Lilly has spent $4 billion in Wisconsin acquiring, expanding, buying land and the adjacent warehouse, which it acquired in 2024. Since 2020, Lilly committed $23 billion to construction, expansion and acquisition of manufacturing sites worldwide.

The project calls for operators, technicians, engineers and scientists and will create more than 2,000 construction jobs. Manufacturing equipment inside will include automated systems, guided vehicles and robots and digital automation.

Interstate 41 in northeast Wisconsin

Around 23 miles of Interstate 41 are being reconstructed between Wisconsin Highway 96 and County F Road, roughly between Oshkosh and De Pere in northeast Wisconsin. The Wisconsin Department of Transportation estimated the multi-year project will cost around $1.2 billion supported by state and federal funding.

The project calls for widening the highway from four to six lanes, rebuilding key interchanges, improving overpasses and redesigning exits.

In September, WisDOT reported that it awarded $306 million for work on highways between Appleton and De Pere. An average of around 70,000 motorists use the mainline each day.

Pabst Farms

The Pabst Farms development, which has been in planning since the early 2000s, has grown into a major district with housing, health care and retail construction. It’s regarded as a master-planned community and spans 1,500 acres.

Milwaukee-based Cobalt Partners announced a 210-acre, mixed-use development at Pabst Farms in Oconomowoc and Summit, part of the latest wave of development there.

Pabst Farms launched in 2003 when developers Peter Bell and Bill Biemann set aside around 200 acres to construct businesses. Since then, the area has been an attraction for technology and research businesses.

Among businesses that call Pabst Farms home include a $189 million Aurora Medical Facility, major retailers such as Fleet Farm and Metro Market and a 115,000-square-foot YMCA facility. Recently, the city of Oconomowoc reviewed a new 161,552-square-foot Costco retail store and gas station.

OneNorth in Bayside

The OneNorth development in Bayside, led by Milwaukee-based Cobalt Partners, has kept contractors busy for a few years now.

That work is expected to continue in 2026 after Cobalt Partners and La Macchia Holdings announced the next phase for OneNorth, which calls for a single mixed-use building with a health and fitness center, full-service grocer and around 180 luxury apartments. Cobalt Partners noted its growth in the area has reached $200 million.

The North Shore development has been in planning since the late 2010s. The first phase of construction started in 2023, when Stevens Construction broke ground on the nearly 200,000-square-foot mixed-use apartment building known as The Symphony. That project, which included the new North Shore Library and 98 apartments, was completed in August 2024. The library will officially open in February 2026.

In September, Matter Development and Moore Construction Services officially broke ground on Artalia Bayside, a $40 million senior community with 153 units, an addition to the OneNorth plan. The building will be operated by Koru Health, an affiliate of Matter Development.

“From the outset, our vision for OneNorth has been to create a vibrant, mixed use destination that feels authentic to the community, walkable, social and easy for everyday life,” said Scott Yauck, president and CEO of Cobalt Partners, in a statement. “This next phase brings OneNorth’s promise into even sharper focus: an elevated living and working environment surrounded by exceptional amenities that people use on a daily basis.”