Data center prospecting company sets sights on Dane County

Cloverleaf Infrastructure LLC, a Houston-based company specializing in prospecting land for large data centers, has filed a motion to intervene with the Wisconsin Public Service Commission (PSC) regarding Madison Gas & Electric's (MGE) application for new energy rates for "very large" customers, understood to be hyperscale data centers. Cloverleaf's intervention signals a strong interest in developing data centers within MGE's service territory across southern Wisconsin, particularly in Dane County.

The proposed tariffs are designed to ensure that data center developers, rather than residential and small business consumers, directly cover the costs associated with data center energy infrastructure. This follows similar actions by other utilities like Wisconsin Electric Power Company (WEPCO), whose tariff application was approved by the PSC with provisions for customer protection, and Alliant Energy, which received approval for rates related to a Meta data center in Beaver Dam. Xcel Energy has also filed a similar application.

Local governments in Dane County are actively responding to potential data center development. The city of Madison has enacted a moratorium on data centers set to expire in mid-January, with city planners expected to introduce new zoning regulations in September. Dane County also recently approved a county-wide moratorium applicable to specific towns. These measures are intended to provide time for regulators to establish informed development standards and for utilities to set appropriate rate structures.

The PSC estimates that data centers will drive three-quarters of a projected 40% increase in Wisconsin's peak electric load by 2032, highlighting the significant energy impacts under consideration by state and local authorities.