Wisconsin data center bills; lawmakers debate regulation tactics

MILWAUKEE - Data center proposals are popping up across Wisconsin, and now there are dueling state bills to regulate them, including what it means for your utility bills. 

Data center proposals

What we know:

The Wisconsin Policy Forum says the state has 40 data centers with more proposed in Mount Pleasant, Janesville, Beaver Dam and Port Washington. 

Democratic candidate for governor Francesca Hong is calling for a moratorium on AI data center construction. A worry is whether normal customers will have to foot the bill for all the new electrical infrastructure. 

We Energies proposes letting the data centers cover the costs. 

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Republicans unveiled on Monday, Jan. 12, new proposals for data center. They would require no costs with building the electrical infrastructure to be passed on to other customers. 

It would also say water used to cool the computer equipment must be a closed loop – meaning the water is recycled, not continually pulling new water. 

Data centers must also report the amount of water used and must have a bond or security money to cover the costs of reclaiming the land after the data center is gone. 

What they're saying:

"This guarantees that ultimately the people who do the development are the ones who return it back to a state to be utilized for an industrial park or some other use that hopefully would help to benefit the region as well," said Assembly Speaker Robin Vos (R-Rochester).

A Democratic proposal would say for companies to get the state's sales and use tax exemption, at least 70% of the data center's electricity must come from renewable resources. It also requires water usage reporting, and calls on the Public Service Commission to make sure rates are just and reasonable. 

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"With these enormous enterprises coming in to local municipalities. It's a bit of a David versus Goliath situation. We need the state to come in and show leadership and establish those guardrails," said State Sen. Jodi Habush Sinykin (D-Whitefish Bay). 

A Marquette poll in October found 55% of the state said the costs of large data centers outweigh the benefits. Forty-four percent say the benefits outweigh the costs – and that includes pretty equal numbers of both parties.