As Madison grapples with the surge of interest in data centers, city officials are considering a temporary halt on new constructions. A proposal to pause the establishment of large data centers is currently under review by the Common Council.
Citizens and stakeholders will have the opportunity to express their views during a public hearing at a Common Council meeting scheduled for Tuesday at 6:30 p.m..
Interest in building data centers across Wisconsin has surged, driven by the increasing demand for computing power and storage capacity fueled by artificial intelligence advancements.
However, some communities in Wisconsin are voicing concerns about the extensive energy and water consumption associated with data centers.
In Madison, the current zoning regulations do not specifically address data centers. These facilities are generally classified under “telecommunications centers,” yet existing rules do not adequately cater to the unique requirements of modern data centers. This was highlighted by zoning staff in a recent Plan Commission meeting.
“Certain large-scale data centers may pose a significant strain on energy and water use, emergency services, traffic, noise, air quality, and urban development,” zoning staff wrote in a memo attached to the ordinance. “Without a zoning regulation that reflects current best practices to responsibly manage this use, the construction of new data centers may impact the implementation of the City’s long-range land use plans, affect property values, or be detrimental to the public health, safety and general welfare.”
Madison could block data centers for 1 year
The proposed legislation seeks to halt the issuance of new permits for telecommunications centers, including data centers, exceeding 10,000 square feet. This moratorium could last for up to a year or until the Common Council establishes new zoning regulations for data centers.
This pause aims to provide city officials more time to conduct thorough research and gather public input, according to the ordinance sponsors.
“We need to take a breather and figure this out,” Alder Derek Field remarked during the Plan Commission meeting.
The city has not maintained records on the number of data centers already operating within its limits, as they have not been categorized separately under zoning laws. According to a recent zoning memo, there might be two data centers over 10,000 square feet currently in Madison. These existing centers would not be affected by the moratorium, which targets new developments.
Regionally, an advisory committee in Dane County is examining the potential impacts of data centers and is expected to provide recommendations that Madison officials might consider.
Chamber of Commerce opposes moratorium
Nevertheless, the moratorium faces opposition from some business leaders. Earlier this week, David Aguayo, representing the board of directors for the Greater Madison Chamber of Commerce, expressed concerns about the proposal.
“Moratoriums, by nature, are blunt instruments that shut the door on any investment opportunity,” Aguayo stated.
He urged the Plan Commission to refer the issue to Madison’s Economic Development Committee for further review. However, the Plan Commission unanimously voted to recommend the ordinance, which now moves to the full Common Council.
The moratorium is likely to pass, as it is supported by Madison Mayor Satya Rhodes-Conway and a majority of city alders.
