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Data centers in Wisconsin are facing resistance from residents and legislators due to concerns regarding their environmental impact and the escalating cost of electricity. Politicians from both major parties are proposing regulations to curb what is seen as an “artificial intelligence (AI) gold rush”, with the Madison City Council proposing a temporary stop to all new data center construction. Meanwhile, utilities companies are profiting from increased energy consumption by data centers, often opting for fossil fuel power generation which is harmful to the environment and expensive for consumers.
Data Centers in Wisconsin Face Opposition and Legislative Scrutiny
The expansion of data centers across Wisconsin has ignited bipartisan concern among its residents and politicians. Challenges to these technological hubs are being driven by fears of escalating electricity costs and the degradation of cherished rural landscapes. This public unease has, in turn, prompted both Democrat and Republican lawmakers to expedite the creation of their respective bills to control the perceived AI gold rush. Included among these legislative responses is the Madison City Council’s plan for a temporary stop to all new data center construction, proposed in January.
These actions reflect mounting apprehension over the impact of Big Tech’s invasion of Wisconsin’s energy grid. Despite assurances from utility companies that their substantial power needs and the equally significant infrastructure they require will be paid for by data center operators like Microsoft and Meta, concerns remain. These companies’ self-regulatory promises are viewed with skepticism due to their vested interests in the rapid build-out of data centers and fossil fuel power generation. It is feared that communities most affected by energy costs, air pollution, and climate change will ultimately bear the brunt of these developments.
Data Centers: A Boon for Energy Companies
A recent report by the non-partisan Wisconsin Policy Forum revealed that energy sales across the state have dipped by 9% since 2005, impacting utility companies’ profitability. The arrival of power-hungry data centers, which are aiding the surge in AI, couldn’t have been timelier for energy utilities concerned about contracting growth and competition from distributed renewables.
In 2023, Microsoft disclosed plans for a colossal data center in Mount Pleasant, intended to be the company’s largest AI “campus” to date. Overall, at least seven hyperscale data centers have been proposed or approved across the state, including contentious projects by Meta and OpenAI/Oracle. Facilities in Port Washington and Mount Pleasant alone are projected to consume 3.9 gigawatts of power, equivalent to the combined consumption of all Wisconsin homes, as per Clean Wisconsin’s analysis.
This surge in demand necessitates an equivalent increase in power generation, offering a much-needed respite for the energy utilities. However, it’s not just the local residents who bear the brunt of this development; as the utilities expand their infrastructure, the
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