Wis. energy demand to rise 40% by 2032, driven by data centers, draft report finds
A new draft report by Wisconsin's state utility regulators projects that electricity demand in the state will increase by over 40% by 2032, primarily driven by three hyperscale data center developments belonging to Microsoft, Oracle, and Meta. This surge will necessitate significant infrastructure development, raising concerns among consumer advocates and environmental groups about costs to ratepayers and climate impact. The Public Service Commission of Wisconsin is holding an online hearing on the draft report in August.
Wisconsin's electricity demand is projected to soar by more than 40% by 2032, according to a new draft report from the state's utility regulators. The Public Service Commission of Wisconsin's strategic energy assessment estimates that peak electricity demand will increase from 14.2 gigawatts to over 20 gigawatts, with more than 72% of this growth attributed to three active hyperscale data center developments.
These major projects include Microsoft's campus in Mount Pleasant, Oracle's facility in Port Washington, and Meta's data center in Beaver Dam. We Energies is slated to serve the Microsoft and Oracle projects, while Alliant Energy will provide power to Meta's data center. The report highlights the "outsized impact data center development is anticipated to have on the energy landscape in Wisconsin."
Utilities, including We Energies and Alliant Energy, stated they are pursuing an "all-of-the-above" strategy, investing in a mix of natural gas, solar, wind, and battery storage to meet the demand. However, consumer advocates and environmental groups, such as Clean Wisconsin and the Citizens Utility Board of Wisconsin, have voiced concerns. Amy Barrilleaux of Clean Wisconsin called the concentration of demand in three projects "shocking" and expressed worry that the state lacks a uniform plan, potentially leading to increased reliance on "dirty energy" like natural gas and delayed coal plant retirements, harming communities and worsening climate change. Tom Content of the Citizens Utility Board also stressed the need for greater state oversight given the immense power consumption by a few customers.
The PSC projects that by 2032, natural gas will account for 50% of the state's energy generation, followed by wind at 17% and solar at 16%, with coal dropping to 3%. The Public Service Commission of Wisconsin has scheduled an online hearing for Thursday, August 20, at 10 a.m. to discuss the draft six-year Strategic Energy Assessment.