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Data centers spark debate; Assembly passes bill
Wisconsin lawmakers debate new restrictions aimed at restricting data centers.
MADISON, Wis. - Microsoft’s data center project in Racine County is poised to grow significantly, as new government records show the tech giant plans to build 15 additional data centers in Mount Pleasant.
The expansion comes as the Wisconsin Assembly passed a bill that would place restrictions on large data centers.
Utility costs in focus
What we know:
Republicans and Democrats agree that there should be new restrictions placed on data centers, but they disagree over what that should look like.
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Data centers require large amounts of electricity, sometimes prompting the need for new power plants and infrastructure. A central worry for lawmakers of both parties is whether utility companies should be allowed to pass those costs on to everyday customers.
"These data centers will cover and pay their way," said State Rep. Shannon Zimmerman, R–River Falls.
Under the Republican-backed proposal, the Public Service Commission would be responsible for ensuring that no utility costs associated with serving large data centers are passed on to other customers.
But Democrats have questions.
"We have a public advocacy organization, Citizens Utility Board. Their whole, entire purpose is to keep rates as low as possible for customers," said State Rep. Angela Stroud, D–Ashland. "They also said that the Republican bill will not keep rates low for customers."
PSC warning draws fire
What they're saying:
The PSC itself has raised concerns, warning the proposal could be difficult to implement and that its language could invite lawsuits and confusion. The PSC has said rates are set based on future projections and that it could not definitively ensure data center costs would not be passed on to customers.
"What it sounds like to me is the PSC getting some kind of talking points as to why they don't want to do their job," said Assembly Speaker Robin Vos. "They do this all the time where they figure out the correct rate."
Renewables and water rules
Dig deeper:
The Republican proposal calls for all renewable energy for the data centers to be located onsite. Supporters say the provision addresses community concerns about large-scale renewable projects.
Wisconsin data center bills; lawmakers debate regulation tactics
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.
"The provision that requires that these renewable energy be on premise is also thoughtful in terms of its impact to the state. For example, in the St. Croix Valley that I represent, there's been a lot of folks up in arms about these large solar farms, and you know, it's altering their landscape," said Zimmerman.
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Democrats argue the requirement would limit renewable options.
"The GOP in Wisconsin has been completely uninterested in addressing the issue of climate change and supporting renewable development in Wisconsin. I think this is indicative of their ongoing allegiance with the fossil fuel industry," said Neubauer.
The bill would also require data centers use closed-loop water cooling systems, meaning the same water is reused. The requirement would also allow for future cooling systems, if it used less water. The bill would also mandate the data centers report on their water usage yearly. It would also require data centers file a security deposit or bond, to be used to restore the land in the future, or if a company bailed on a project.
Uncertain future
What we know:
The Assembly passed the bill 53–44. The Wisconsin Senate would also need to pass it.
It's likely Democratic Gov. Tony Evers would veto it, since Assembly Democrats were opposed to it.
"We need to take action to regulate data centers, but we need to get it right. Unfortunately, the GOP bill that we're voting on today will not do what it promises. It's been rushed through the process, will not hold corporations accountable in the way that we should, and it doesn't protect our communities entirely from the higher energy costs that are being being discussed," said Neubauer.
"If you don’t support this, what you're saying is: 'I'm not going to support and defend the rate payers. I'm not going to put provisions in which assure us of water protection going forward'," said Zimmerman.
Outside the bill, We Energies has asked the PSC to place the costs of new electrical infrastructure for data centers directly on the data centers themselves. Microsoft has said it supports that approach.
The Source: FOX6 News was in attendance at the Wisconsin Assembly on Tuesday, Jan. 20.