Madison, Dane County begin exploring rules on ‘hyperscale’ data centers

Madison and Dane County authorities are actively developing new zoning regulations for 'hyperscale' data centers, prompted by public concerns over water and energy consumption, and two recently enacted moratoriums. Dane County passed an 18-month moratorium on such developments, effective until December 2027, following a similar 12-month pause instituted by the Madison City Council in January, which is set to expire next January.

Deputy Mayor Christie Baumel and Planning Director Meagan Tuttle of Madison highlighted that existing smaller data centers are not the primary concern, but rather large-scale facilities that can occupy significant land and demand substantial resources. Officials acknowledge limitations in regulating water and energy use at the local level, with state bodies like the Public Service Commission overseeing energy, but the city can impact land use, building design, and environmental discharge rules through zoning.

Patrick Miles, chair of the Dane County Board, emphasized that large data centers raise complex questions about resource use and long-term land use, often with insufficient information from developers. He noted that the county's unanimous vote for an 18-month moratorium was influenced by Madison's earlier action. This regional push for regulation follows a successful grassroots opposition effort that led to the cancellation of a QTS data center project in DeForest earlier this year. County Board member Colin Barushok stated that a QTS executive indicated the DeForest rejection had deterred the company from further exploration in the county.

Madison officials anticipate releasing a draft plan for new regulations by September, aiming for potential adoption by the end of the year. The broader trend of local opposition gaining traction compared to statewide legislative efforts suggests a continued focus on localized data center governance in Wisconsin.