Wisconsin utility, data center developers seek to loosen state financial regulations
We Energies, Vantage Data Centers, and Cloverleaf Infrastructure are asking Wisconsin state regulators to ease financial rules for data center projects. They seek to amend a recent Public Service Commission decision regarding financial backing required from large energy users, aiming to lower collateral for operators with lower credit ratings. The Sierra Club's Wisconsin chapter has expressed concern, arguing that tech companies should face the same credit checks as ordinary citizens.
We Energies, Vantage Data Centers, and Cloverleaf Infrastructure have formally requested that Wisconsin state regulators relax certain financial rules impacting data center development. They petitioned the Public Service Commission to amend a recent decision that established a special rate structure for large energy users, specifically concerning the financial backing required for energy projects. The companies aim to reduce the amount of collateral data center operators need to provide if they do not meet the highest credit rating thresholds.
Cassidy Steiner of the Sierra Club's Wisconsin chapter expressed opposition to the request, stating that "Most Wisconsinites are very familiar with having to pass a credit check, having to pay fees if they're not able to do so, and it makes sense to ask billionaire tech companies to do the same." Conversely, We Energies argues that the current rules could deter companies from investing in Wisconsin. The outcome of the request remains pending before the Public Service Commission.