As Wisconsin faces a wave of proposed data center developments, the state’s Assembly has advanced a new bill aimed at regulating these facilities. Amidst concerns about the impact on local resources, the legislation seeks to impose specific requirements on data centers regarding energy, water usage, and environmental restoration.
The bill, chiefly supported by Republicans, mandates that data centers, rather than consumers, finance improvements to the power grid. It passed the Assembly with a nearly party-line vote. Proponents argue the bill encourages economic growth. Rep. Robert Wittke, R-Caledonia, referencing a previously halted Microsoft data center project, emphasized the state’s role in facilitating industry.
“People here believe that we should have the heavy hand of government dictate what kind of rate that this company should basically have, instead of allowing arm’s length negotiation between the PSC and Microsoft to decide what is … the burden of their cost to have,” Wittke explained.
However, critics argue the bill is inadequate and was pushed through hastily. Rep. Angela Stroud, R-Ashland, criticized it as “severely underdeveloped” and an “embarrassment,” citing concerns about rapid AI advancements, energy costs, and environmental risks.
“There’s nothing efficient about poorly constructed legislation when it causes problems on the back end, which is why it is our responsibility to do the work of due diligence and get it right,” Stroud stated.
The legislation requires the Public Service Commission to ensure consumers aren’t liable for electric infrastructure costs tied to data centers. It also mandates water recycling and usage reporting, and stipulates land restoration if projects are unfinished.
The bill stipulates that if data centers opt for renewable energy, sources must be located on-site. Assembly Speaker Robin Vos, R-Rochester, explained this prevents locals from subsidizing others’ energy needs.
Rep. Angelito Tenorio, D-West Allis, criticized this aspect, saying, “Instead of requiring data centers to add new renewable capacity to the grid, this bill makes it harder. Instead of reducing emissions, it locks data centers into dirtier, more expensive fossil fuels.”
The legislation surfaces amid a national increase in data center proposals, driven by the rise of artificial intelligence technologies. These operations demand substantial water and power, causing resistance in some Wisconsin areas. Nonetheless, advocates highlight job creation during construction and operation.
A Democratic alternative, requiring renewable energy usage and fair wages, failed to move forward. Attempts to amend the GOP bill with similar provisions were also unsuccessful.
The Assembly passed the GOP bill 53-44. Notably, Rep. Jodi Emerson, D-Eau Claire, and Rep. Steve Doyle, D-Onalaska, supported the bill, while Rep. Lindee Brill, R-Sheboygan Falls, opposed it.
