Tiffany vows to end subsidies for data centers in Wisconsin

Wisconsin congressman and gubernatorial candidate Tom Tiffany announced his intention to eliminate state subsidies for data centers if elected governor. This declaration follows public and political scrutiny over rising energy costs and substantial tax exemptions benefiting data center companies in the state. Recent polls indicate that 69% of Wisconsin voters believe the costs associated with data centers outweigh their benefits. The state's Public Service Commission recently approved multiple energy rate increases, with We Energies proposing a further 14% hike over two years. Concurrently, certified data centers in Wisconsin are exempt from sales tax on construction materials, equipment, and electricity. Many also benefit from tax increment districts (TIDs), which redirect increased property taxes away from public entities to the data center companies themselves. These sales tax exemptions, part of the 2023-25 budget passed by the Republican-controlled Legislature and approved by Governor Tony Evers, have already surpassed initial projections, costing the state $70 million in forgone revenue in the first two years. This figure is expected to grow significantly as major projects, including Microsoft's $4 billion data center in Mount Pleasant, continue to be certified for these exemptions. Attempts to pass legislation limiting the impact of data centers on energy rates and blocking non-disclosure agreements failed in the recent legislative session.