As data center development continues to expand across Wisconsin, local communities have raised concerns over energy and water demands. But state lawmakers can’t come to an agreement on how to regulate them.
Republicans’ Assembly Bill 840 and Democrats’ Assembly Bill 722 both aim to protect Wisconsin residents from the impacts of new data centers. AB 840, which passed the Assembly in January, has been criticized for having vague language and federal law conflicts, leaving communities exposed, while AB 722 has yet to receive a committee hearing.
While lawmakers have had opportunities for compromise, partisan divisions have halted any sort of action.
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Wisconsin is home to 51 of the United States’ 3,971 data centers.
A Wisconsin Policy Forum report explained that while these facilities have the potential to increase job opportunity and economic growth, they would also strain the state’s water and energy infrastructure.
A 2023 study found US data centers used 4% of the country’s total electricity. By 2028, federal officials expect that share to rise to 6.7-12%, according to the Energy Information Administration.
There is a lack of publicly available data from individual facilities, which in turn makes it difficult to understand the full impact. Rep. Angela Stroud (D-Ashland) told UpNorthNews this is why data center regulation is so important.
As the Wisconsin Policy Forum noted in its report: “For now, the power needs of data centers appear to be one of the most important areas for state and local policymakers to consider.”
It’s so important, in fact, that Clean Wisconsin launched a petition in November to pause all data center approvals until state and local leaders develop a comprehensive plan to protect communities. The petition currently has just over 4,000 signatures, reinforcing the notion that Wisconsinites largely oppose the centers.
More about the Republicans’ bill
AB 840 was coauthored by Rep. Shannon Zimmerman (R-River Falls) and Sen. Romaine Quinn (R-Birchwood) and passed 53-44 in the Assembly on Jan. 20. The bill addresses environmental impact and utility costs, two large points of concern with data center development.
The proposal, which is now set to head to the state Senate for consideration, requires data centers to use a closed-loop water system for cooling purposes—in other words, instead of using a continuous supply of fresh water, the amount of water is fixed and then recycled. Facilities like those planned in Wisconsin have historically used tens of millions of gallons of water each year.
It also requires the Public Service Commission of Wisconsin (PSC) to ensure that those living near data centers do not see the costs of “construction or extension of electricity infrastructure” on their utility bill.
During testimony, however, the PSC raised concerns, saying “some of the terminology used in the proposed bill could invite litigation and cause confusion,” and “would be challenging to implement.”
Stroud argued the bill does not accomplish its stated goal, and could leave the public facing higher utility bills. She said it adds unclear language instead of clearly changing existing law, and warned that vague or conflicting language can make it difficult for state agencies to apply the policy as intended.
Stroud also noted that parts of the bill have federal law components, such as transmission lines that cross state lines. This means the state cannot legally override those rules, creating contradictions.
“If we were to pass 840, [PSC] would take vague language, they would have to look at how that fits with existing language, and they’d have to somehow try to figure out the way to make these two contradictory things work,” Stroud said.
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What’s in the Democrats’ bill
A separate data center regulation bill, AB 722, was introduced in November by Democrats and led by Stroud and Sen. Jodi Habush Sinykin (D-Whitefish Bay).
The bill seeks to encourage data centers to rely on renewable energy, and invest in clean energy for the future of the state.
“If we have the wealthiest companies in the history of the world wanting to come to our state, could we use this moment to build out our renewable energy grid?” Stroud said. “Because here’s the thing, if we use their investments and their interest in our state to build out renewables, and then they collapse, we got renewables out of it.”
The proposal would also require the PSC to classify data centers as “very large customers,” a designation that would ensure their high energy usage does not drive up costs for everyday customers.
The measure has not yet received a committee hearing.
During the January floor session, Democrats introduced the bill as an amendment to AB 840 in an effort to clarify the language, according to Stroud. It was voted down by Republican lawmakers.
Stroud said the concern is what could happen without proper safeguards in place.
“We’re exposing the public to significant risk in terms of raising energy costs,” Stroud said. “So it is our job to make sure we’re protecting the public. There’s a way to do that. Our bill has language.”
RELATED: 3 ways Wisconsinites can get involved as data centers try to creep into their communities
What’s blocking a data center compromise
While Democrats and Republicans seem to agree there is a need for data center regulations, they remain split on a way to do so.
Stroud voiced her frustrations, explaining how Democrats proposed a compromise, but Republicans are not willing to budge.
“To compromise, you actually have to work together,” Stroud said. “So just take the one thing, the one part of our bill that would actually protect rate payers in terms of utility bills, and put that in your bill, because you said that that’s what you wanted to do, and [Republicans] ignored it. This is not even compromise.”
