The new building, which is being designed by architect Frank O. Gehry, will be located on the site of the MIT's historic Building 20, where radar was developed during World War II. That building was demolished last year.
Construction of the new building should be completed by 2003.
According to Wright, Microsoft has donated money to MIT before, but this is the first time the university received money from Gates personally. The funds came from the William H. Gates III foundation, Gates' personal charity foundation, which is worth over $6.5 billion.
Gates last donated money to Harvard in 1996 when he and Microsoft Executive Vice President Steven A. Ballmer '77 gave $25 million to the University to benefit research and teaching in computer sciences and electrical engineering.
Harvard is using $20 million of the donation to construct a research and teaching facility for computer science and electrical engineering activities. The building will be named Maxwell-Dworkin after the donors' mothers, Mary Maxwell Gates and Beatrice Dworkin Ballmer. Construction of the building is ongoing at a site near the law school.
The remaining $5 million was used to support research and endow a Faculty chair.