Data Centers Could Hike Wisconsin Energy Demand by 40% by 2032
A draft report by the Public Service Commission of Wisconsin projects a more than 40% increase in state electricity demand by 2032, primarily driven by three hyperscale data center projects from Microsoft, Oracle, and Meta. While utilities assert they can meet this demand through diversified energy generation, environmental groups and consumer advocates raise concerns about potential costs for ratepayers and increased reliance on fossil fuels. The report underscores the significant impact data center development will have on Wisconsin's energy landscape.
State regulators in Wisconsin have released a draft strategic energy assessment projecting a significant increase in the state's electricity demand by 2032, primarily due to hyperscale data center developments. The Public Service Commission of Wisconsin's report estimates a rise from 14.2 gigawatts to over 20 gigawatts in peak electricity demand, a 40% increase over six years. Over 72% of this projected growth is attributed to three active data center projects.
The identified projects are Microsoft's campus in Mount Pleasant, Oracle's campus in Port Washington, and Meta's data center in Beaver Dam. We Energies will serve the Microsoft and Oracle facilities, while Alliant Energy is designated for Meta's project. The report underscores the "outsized impact" these developments are expected to have on Wisconsin's energy landscape.
Utilities, including We Energies and Alliant Energy, state they are preparing to meet the demand through a diversified "all of the above" strategy, investing in natural gas, solar, wind, and battery storage. We Energies spokesperson Brendan Conway mentioned plans to invest over $12.5 billion in new generation resources and grid modernization.
Environmental groups like Clean Wisconsin, represented by Amy Barrilleaux, criticize the reliance on fossil fuels and the lack of a uniform statewide plan, warning of harm to communities and climate change impacts. Tom Content, executive director of the Citizens Utility Board of Wisconsin, voiced concerns about a few customers consuming vast amounts of electricity and called for increased state oversight in energy planning. The PSC projects natural gas will constitute 50% of the state's energy generation by 2032, with coal at 3%, wind at 17%, and solar at 16%.