Guaranteed tax revenue, river funding, affordable housing: What DeForest negotiated before a data center deal collapsed
The village of DeForest, Wisconsin, rejected a $12 billion data center project from QTS Data Centers due to significant public opposition. This decision occurred despite the village having negotiated a robust agreement with the company that included substantial public benefits, which some experts suggest could serve as a model for other communities. The rejection was prompted by public outcry over the project's impact and the initial secrecy surrounding its development.
The village of DeForest, a Madison suburb, abruptly rejected a $12 billion, 1,600-acre data center project earlier this year. The decision was primarily driven by mounting public opposition, which stemmed from general objections to data centers, alleged misinformation regarding their impact, and public anger over the project's initial secrecy. The proposal, which had been secretly worked on for months, involved Virginia-based QTS Data Centers.
Despite the project's ultimate failure, DeForest officials had negotiated a comprehensive agreement with QTS that included substantial public benefits, such as guaranteed tax revenue, river funding, and affordable housing initiatives. Tyler Byrnes, a researcher at the nonpartisan Wisconsin Policy Forum, highlighted these negotiated terms as unique and a potential model for other communities in Wisconsin to demand from future hyperscale data center projects. While DeForest turned down this specific development, other Wisconsin communities like Kenosha, Menomonie, Wisconsin Rapids, and Rock County are reportedly considering data center proposals, and some local governments are adopting data center moratoriums.