Francesca Hong’s Policy on Data Centers Is Unique

Wisconsin State Representative Francesca Hong, a Democratic Socialist and gubernatorial candidate, is the only contender to advocate for a one-year statewide moratorium on new AI data center construction. Speaking at a candidate forum and in an interview with WPR, Hong emphasized that such a pause would allow the state to develop essential regulations for the rapidly expanding industry. These proposed regulations include eliminating state subsidies for data centers, protecting consumers from increased utility costs, imposing environmental safeguards, and mandating union labor for construction. Hong explicitly stated that her moratorium would not impact projects already underway in locations such as Mount Pleasant, Port Washington, and Beaver Dam.

Business leaders, including Dale Kooyenga, president of the Metropolitan Milwaukee Association of Commerce, strongly oppose Hong's proposal. Kooyenga argues that a moratorium would impede Wisconsin's economic growth, citing data center investments as crucial to the state's recent economic expansion and job creation, particularly within the supply chain and union construction sectors. He also highlighted the property tax benefits for local schools and governments. Kooyenga criticized the candidates' positions, suggesting they are rooted in populism based on inaccurate information about data centers, and views a statewide ban as an "anti-local control" measure that stifles community-specific negotiations.

Despite industry concerns, public sentiment in Wisconsin shows significant skepticism towards data centers. A May Marquette Law School Poll revealed that 71 percent of voters believe the costs of data centers outweigh their benefits, with opposition spanning across political ideologies. This widespread disapproval has led most gubernatorial candidates, across both Democratic and Republican parties, to express caution regarding unchecked data center expansion, often calling for ratepayer protections, transparency, and an end to subsidies. Some local governments, including the City of Superior, Village of Wrightstown, and Manitowoc and Dane counties, have already enacted their own data center moratoriums.

Hong maintains that a statewide moratorium is a "responsible response" to the industry's rapid growth, allowing for adequate environmental and economic guardrails. While the specifics of such legislation would need to be ironed out in the state Legislature, her previous bill proposing a similar moratorium failed to pass. The issue's ultimate impact on voter behavior in the upcoming August 11 primary remains uncertain, despite strong local opposition at community meetings.