Wisconsin regulators approve rates for Meta’s Beaver Dam data center, with sharp criticism

Wisconsin utility regulators have approved custom electric rates for Meta's $1 billion data center campus in Beaver Dam, but not without sharp criticism aimed at Alliant Energy and Meta for what they termed a lack of transparency. The Public Service Commission (PSC) ordered Alliant Energy to establish a standard rate for future data center customers with large loads of 100 megawatts or more and mandated additional reporting, cost-of-service studies, and incremental cost analyses to better understand the impact of Meta's energy demand. PSC Chair Summer Strand expressed strong disapproval of the "black-box approach" involving nondisclosure agreements, heavily redacted filings, corporate pseudonyms, and secret negotiations, emphasizing that this lack of transparency was detrimental. The approved agreement will supply Meta's 700,000-square-foot data center with 220 megawatts of power over a 10-year term. Under the terms, Meta will pay for its minimum energy demand even if not used and will incur strengthened termination charges for the entire 10-year period. Customer advocates and environmental groups, including the Citizens Utility Board and Clean Wisconsin, had pushed for stronger protections for ratepayers, urging longer contract terms and standard rates to ensure Meta covers all associated costs and to mitigate risks if energy demand projections are not met. Tom Content of the Citizens Utility Board highlighted concerns about potential instability in the AI boom, asserting that the PSC's decision sends a message that tech companies must bear their full costs in Wisconsin. Clean Wisconsin's Brett Korte advocated for standard utility tariffs for data centers, hoping to avoid future individual contracts. In November, Meta confirmed its involvement in the Beaver Dam project, which is expected to create over 1,000 construction jobs and more than 100 permanent positions by its 2027 operational date. Meta has pledged nearly $200 million for infrastructure, including transmission lines and substations. Separately, Midwest Environmental Advocates sued the PSC in December to compel the release of Meta's projected energy demand, with that case still active. The PSC has also directed Alliant to collaborate with American Transmission Co. (ATC) to ensure Wisconsin customers are not billed for transmission costs related to Meta's or other data centers.