Articles about patents by non-patent attorneys make me cringe. With that being said, yes, the application probably is garbage; yes, they will likely be granted some sort of patent; and yes, the patent system is broken.
You need to look at the claims to truly understand what they are asking for coverage on, and then you still need to look up the application at the USPTO site to see how the claims currently look. They almost always change during examination of the application. Usually they go from initially being completely unreasonable to just somewhat unreasonable by the time the patent is granted.
I didn't quickly find the Microsoft application. But check out the competing "technology" from Google...
http://www.google.com/patents/about?id=V2vGAAAAEBAJ&dq=patent:7525207
This issued patent (#7,525,207) covers anything that has the following three things (from claim 1):
A system, comprising: (1) a computer data center proximate to a body of water comprising a plurality of computing units; (2) a sea-based electrical generator in electrical connection with the plurality of computing units; and (3) one or more sea-water cooling units for providing cooling to the plurality of computing units.