Fiscal Facts: Grounding a charged debate on data centers
A Wisconsin Policy Forum report examines the economic and infrastructure tradeoffs of data center development across the state. It highlights rising electricity demand, potential impacts on transmission rates and property taxes, and opposition to some proposed projects, while finding that several communities have negotiated fiscal safeguards.
A Wisconsin Policy Forum report finds that Wisconsin trails states such as Virginia and Ohio in data center construction but is seeing new hyperscale facilities built or proposed. Microsoft operates a data center in Mount Pleasant, while projects are under construction in Port Washington and Beaver Dam; proposals in Janesville and DeForest were later canceled.
The report identifies electricity demand and the effects of tax increment financing as major concerns for policymakers and residents. State projections indicate peak power demand could rise by more than 5 gigawatts between 2024 and 2030, while local governments may face challenges protecting existing taxpayers from infrastructure and incentive costs. The forum says communities have generally negotiated reasonable safeguards but offers additional policy options for state and local officials as opposition to large data centers grows.