Janesville, Wisconsin, Faces Opposition to Proposed AI Data Center

The city of Janesville, Wisconsin, once a symbol of the Great Recession following the General Motors plant closure, has become a central battleground in the national debate over AI data center development. Economics correspondent Paul Salman reported on a proposed $8 billion data center campus on the 250-acre former GM site by a Colorado-based developer. Initially seen as a boon by figures like George Cullen from Janesville's Chamber of Commerce, promising site remediation, jobs, and tax revenue, the project soon met fierce local resistance.

Residents, including Pastor Roy Jewell, raised significant concerns about the data center's potential impact, citing excessive water usage, noise, light pollution, and the strain on energy prices, referencing an announcement by PJM, the nation's largest electrical grid operator, about billions in consumer costs due to data center power demand. This local opposition is part of a growing national trend, with a Gallup poll indicating 70% of Americans oppose AI data center construction in their communities.

JL Holtzman from climate website Heatmap noted the diverse political coalition forming against data centers. The report also highlighted a successful opposition effort in Caledonia, Wisconsin, where former bank executive Prescott Bouch helped convince Microsoft to withdraw its data center proposal. Despite Wisconsin's 2023 sales tax break designed to attract data centers, Bouch warned communities against overestimating benefits and underestimating industry volatility.

In Janesville, the local backlash culminated in the election of two data center opponents to the city council. The council subsequently terminated its agreement with the developer, and the Chamber of Commerce also withdrew its support. While the developer expresses hope to revive the project, Janesville has currently stalled the deal, illustrating a community's decision to refuse a seemingly lucrative economic offer.