Rally in RF demands end to data center tax exemption
A rally in River Falls, Wisconsin, demanded an end to the state's sales-and-use-tax exemption for data centers, citing concerns over economic impact and natural resource use. Opponents, including GrassRoots Organizing Western Wisconsin (GROWW), criticized Rep. Shannon Zimmerman's role in the exemption's enactment, while Zimmerman defended the policy as an economic development tool. The event launched GROWW's fall voter-turnout campaign, advocating for greater transparency and protections regarding data center development statewide.
The 'No Blank Checks for Big Tech' rally, held in Veterans Park in River Falls, Wisconsin, on September 23, called for the repeal of the state's sales-and-use-tax exemption for qualified data centers. Organized by GrassRoots Organizing Western Wisconsin (GROWW), the event criticized State Representative Shannon Zimmerman (R-River Falls) for his role in co-authoring the 2023 legislation that established the exemption, which was later signed into law by Democratic Gov. Tony Evers as 2023 Wisconsin Act 19.
Speakers, including GROWW co-executive Director Bill Hogseth, argued that the tax exemption, estimated to cost the state between $1.6 billion (Wisconsin Department of Revenue) and $2 billion (Legislative Fiscal Bureau) in lost revenue, allows data centers to "extract wealth" and natural resources like water from communities. Hogseth urged support for Zimmerman's Democratic challenger, Kevin Knoke, who expressed a desire for environmental and ratepayer protections rather than a complete ban on data centers.
Rep. Zimmerman defended the exemption as a targeted economic development tool, clarifying that it is not a "blank check" but rather an incentive for substantial investment in Wisconsin by qualified data centers. He also cited his authorship of AB 840 to address concerns about energy costs, water use, cooling systems, and land restoration. Despite Zimmerman's explanations, rally participants, including Wendy DiPeso, a GROWW member, emphasized the need for greater transparency, accountability, and community protections, citing past secrecy around data center developments in Menomonie and Port Washington.
Danny Akenson, another GROWW organizer, highlighted the community mobilization in Menomonie that led to calls for a pause on new data center approvals, advocating for statewide protections against undisclosed corporate agreements. The rally marked the public launch of GROWW’s fall voter-turnout campaign, aiming to ensure that decisions regarding public money, natural resources, and technology development are shaped by residents rather than solely by wealthy corporations.