Another Wisconsin county considers data center moratorium
Brown County, Wisconsin, is considering a moratorium on new data center projects, following similar actions by other counties like Madison and Manitowoc, and a proposed 18-month moratorium in Dane County. State Representative Amaad Rivera-Wagner is urging residents to attend an upcoming Brown County Board meeting to support the measure, emphasizing the need for community protections. The move comes amidst discussions about data center tax exemptions and their financial impact on the state, including an estimated $1.5 billion in foregone sales tax.
Brown County, Wisconsin, is currently considering a moratorium on approving new data center projects. This consideration follows a trend across the state, with several other cities and counties introducing or approving similar pauses to gather comprehensive information on the broad impacts of large-scale data center developments. Concerns span land use, zoning regulations, water and power consumption, and the financial implications of tax breaks offered to these facilities.
State Representative Amaad Rivera-Wagner, a Democrat from Green Bay, has publicly encouraged Brown County residents to attend the upcoming Brown County Board meeting on June 17. He urged citizens to voice their support for the proposed moratorium, stating that the measure is not anti-technology but aims to ensure "real protections" for Wisconsin communities before further development proceeds.
The push for local moratoriums gained momentum after Wisconsin state lawmakers concluded their recent legislative session without enacting statewide data center regulations or safeguards for ratepayers concerning utility costs. Concurrently, a report from Wisconsin's Legislative Audit Bureau highlighted significant foregone sales tax revenue, estimating $1.5 billion from the initial construction of four data center projects and an additional $369 million annually once completed. This is due to a 2023-25 budget sales tax exemption covering everything from property to energy systems.
Prominent data center projects benefiting from these exemptions include Microsoft's $20.6 billion investment across Wisconsin, a $15 billion collaboration by OpenAI, Oracle, and Vantage Data Centers in Port Washington, Epic Hosting's $347 million project in Verona, and Meta's $1 billion development in Beaver Dam. Many of these projects are also situated in tax increment districts, allowing companies to reclaim additional property taxes to offset development costs.