Berens, West Wisconsin groups advocate for data center protections
Wisconsin comedian Charlie Berens keynoted a regional event in Eau Claire, advocating for data center protections and criticizing politicians for tax exemptions benefiting tech companies. The event highlighted public and farmer opposition due to concerns over electricity rates, water contamination, and increased tax burdens. A state audit revealed Wisconsin would forego significant sales tax revenue for major data center projects by companies like Microsoft, OpenAI, Oracle, Vantage, Epic Hosting, and Meta.
Wisconsin comedian Charlie Berens headlined the "United West Wisconsin regional response to data centers" event in Eau Claire, rallying communities to advocate for greater regulation of the data center industry. Berens criticized politicians for prioritizing "big tech" over constituents and urged for legislative action, citing public polls indicating widespread belief that data centers' costs outweigh their benefits.
Other speakers, like Ed Gorell of the Wisconsin Farmers Union, expressed opposition to data centers increasing electricity rates, contaminating water, raising local tax burdens, and occupying prime farmland. Gorell also highlighted concerns about tax increment districts and the misuse of "blight" designations to grant data centers favorable breaks.
The article detailed significant financial implications for Wisconsin, with a Legislative Audit Bureau report revealing the state would forego $1.5 billion in sales tax during initial construction for four major data center projects, plus an additional $369 million annually post-completion. These exemptions, enacted in the 2023-25 budget, cover various aspects from property and servers to energy and cooling systems. Specific projects benefiting include Microsoft's $20.6 billion development, a $15 billion project by OpenAI, Oracle, and Vantage Data Centers in Port Washington, Epic Hosting’s $347 million project in Verona, and Meta’s $1 billion project in Beaver Dam.
While Berens believes the "organic movement" against data centers is the biggest threat to big tech, political figures like Congressman Tom Tiffany have pledged to end data center tax breaks if elected governor. Conversely, Metro Milwaukee Association of Commerce President Dale Kooyenga defended the tax exemptions, arguing they stimulate economic activity, attract jobs, and that construction workers' income and property taxes offset the sales tax foregone. He asserted that the exemptions are not a "cost" but a necessary incentive for these projects to come to Wisconsin.