What are data centers and why are they popping up in Wisconsin?
Data centers are proliferating in Wisconsin, driven by factors like abundant water and a state sales tax exemption. However, significant opposition from residents and officials is growing due to concerns over environmental impact, particularly on water and energy infrastructure. Gubernatorial candidates are addressing these concerns, with both emphasizing local control over data center development.
Data centers are proliferating across Wisconsin, raising questions among residents about their function and impact. The state is home to 53 data centers, including a growing number of AI-focused facilities that require significantly more energy and water than traditional centers. Two primary factors attracting these developments are Wisconsin's ample fresh water resources for cooling and a state sales tax exemption on equipment and building supplies, approved in the 2023-25 budget by the Republican-controlled Legislature and Gov. Tony Evers, which has resulted in an estimated $2 billion in lost state revenue.
While proponents suggest economic growth and job creation, a Wisconsin Policy Forum report highlights the strain on the state's water and energy infrastructure, with economic benefits largely stemming from construction rather than long-term operations. Public sentiment reflects concern, as a Marquette University Law School poll indicated 70% of registered voters believe costs outweigh benefits. This widespread opposition has led to instances like a proposed AI data center in Greenleaf being abandoned due to community and official resistance.
Both gubernatorial candidates, Democrat Milwaukee County Executive David Crowley and Republican US Rep. Tom Tiffany, have positioned data center development as a key campaign issue. Crowley advocates for strong local control, allowing communities to block projects they oppose, and proposes requirements for union labor, self-funded energy, and infrastructure upgrades without taxpayer burden. Tiffany also emphasizes local communities, vowing to protect farmland and prevent Wisconsin from becoming "America's data land." Voters will consider these stances in November.