Democrats See Opening In Long-Red Seat Over Data Center Tax Breaks
Democrats in Wisconsin's 30th Assembly District are campaigning on anti-data center sentiment and tax break concerns, hoping to oust long-time Republican incumbent Shannon Zimmerman, who authored a bill providing substantial tax exemptions to the data center industry. Local advocacy groups are rallying against these tax breaks and the impact of data centers on water and electricity resources. The Public Service Commission has also taken action to modify electric rates for data centers to protect residential ratepayers.
Democrats in Wisconsin's 30th Assembly District are leveraging growing anti-data center sentiment to challenge Republican incumbent Shannon Zimmerman, whom they accuse of being the "architect" of significant tax breaks for the industry. A rally in River Falls organized by the advocacy group GROWW highlighted anger over a $1.6 billion tax exemption for data center equipment and software, which has contributed to a data center building boom in the state. Opponents, including Democratic challenger Kevin Knoke, argue that these tax breaks extract wealth and resources like water from communities without sufficient benefit.
Zimmerman, a Republican Assemblyman who has held the seat for a decade, authored legislation that was ultimately included in the state's budget and signed by Democratic Gov. Tony Evers. While Zimmerman disputes claims of conflict of interest, Knoke points to his executive positions with AI companies that could benefit from the tax breaks. Zimmerman's subsequent bill (AB840), which aimed to address concerns regarding grid upgrade costs, water usage reporting, and land reclamation, passed the Assembly but died in the Senate.
Separately, the Wisconsin Public Service Commission has taken steps to modify electric rates for data center-scale customers to protect residential ratepayers and ensure data centers cover their own infrastructure costs. The political debate over data centers, their tax incentives, and environmental impact is a key issue in the upcoming election, with Democrats hoping it will help them flip the traditionally Republican 30th District.