Competition intensifies over who builds Wisconsin's electricity grid as data centers drive demand

The Midcontinent Independent System Operator (MISO), which coordinates electricity markets across the Midwest, recently reversed an earlier decision regarding a critical transmission project in eastern Wisconsin. Initially, MISO awarded the project to Viridon, a developer backed by investment firm Blackstone, whose bid was significantly lower than competitors'. However, MISO later reassigned the substations needed for the project to the American Transmission Company (ATC). This decision came amidst an urgent timeline to bring a new $15 billion data center campus in Port Washington online by late 2027. ATC argued it was better positioned to complete the necessary infrastructure, including three new substations, before the data center's deadline, citing Viridon's lack of certification as a public utility in Wisconsin. Vantage Data Centers, operating the Port Washington campus, also emphasized the urgency. While ATC's assumption of the project is a win for the state's largest transmission developer, it reignites the broader debate over competitive bidding versus local monopolies in transmission development. Ratepayer advocacy groups, such as Wisconsin's Citizens Utility Board, expressed concern that this move could shift more of the project's estimated $1.3 billion cost to Wisconsin ratepayers rather than spreading it across multiple states or having tech companies pay directly. The Wisconsin Public Service Commission (PSC) is currently reviewing ATC's application for the broader grid buildout, which includes the substations, and will ultimately decide on the infrastructure's siting and cost allocation.