Wisconsin data centers to be major political issue, driving energy demand spike
Data center development is emerging as a significant bipartisan political issue in Wisconsin, driven by its impact on energy use and rates. A state Public Service Commission report projects a 40% jump in peak power demand by 2032, largely due to hyperscale data centers. Utilities are planning substantial natural gas additions to meet this demand, while assuring customers that data centers will cover associated costs.
Data center development in Wisconsin is poised to become a significant bipartisan political issue for the 2026 campaign cycle, with gubernatorial candidates already discussing its impact on energy use and rates. The issue also touches on environmental concerns related to water use, water quality, and the development of farmland, contributing to its broad appeal.
The state Public Service Commission recently released a draft of its biennial Strategic Energy Assessment, which projects a 40% increase in Wisconsin's peak power demand over the next six years, reaching 20 gigawatts by 2032. This substantial surge is primarily attributed to three hyperscale data center developments in Beaver Dam, Port Washington, and Mount Pleasant, the latter of which was recently brought online by tech giant Microsoft. These projects are located within the service areas of Alliant Energy and WEC Energy Group.
Citizens Utility Board Executive Director Tom Content criticized the state's energy planning process, noting that Wisconsin's electricity rates are now the second-highest in the Midwest, contrasting with a period when strong planning resulted in the lowest rates. To meet the projected demand, utilities are planning significant additions of natural gas capacity, totaling 5,400 megawatts by 2032, more than double previous projections. Both Alliant Energy and WEC Energy Group have committed that new large-energy-users, such as data centers, will pay for the full cost of infrastructure built to serve them, with WEC Energy Group citing the approval of its Very Large Customer (VLC) rate for data centers.
The state's energy mix is also projected to shift dramatically, with coal's share falling to 3% by 2032 while natural gas rises to 50%, and solar and wind generation also increasing. Longer-term planning to achieve net-zero CO2 targets by 2050 suggests a greater role for nuclear power, reinforcing the bipartisan interest in energy issues during this election cycle.