Why Madison Suburb of DeForest Shot Down $12 Billion Data Center Project
The Village of DeForest, Wisconsin, rejected a $12 billion QTS data center project despite it offering extensive community benefits and protections. The decision was made following significant public opposition, fueled by concerns over the data center's impact and the lack of transparency in initial negotiations. This case could serve as a model for how communities can negotiate future data center deals.
The Village of DeForest, Wisconsin, a suburb of Madison, rejected a proposed $12 billion, 1,600-acre data center project from QTS Data Centers earlier this year. This decision came after months of mounting public opposition, which was fueled by general objections to data centers, alleged misinformation about their impacts, and anger over the initial secrecy surrounding the project's negotiations. Village Administrator Bill Chang noted that "The politics got too loud too fast," preventing a vote on the necessary annexation.
Despite the rejection, the agreement negotiated with Virginia-based QTS Data Centers was described by experts, including Tyler Byrnes of the Wisconsin Policy Forum and professor Ross Milton of the University of Wisconsin-Madison, as offering unusually broad community benefits. These included guaranteed property tax revenue of at least $12 million annually by 2031, significant funding for local infrastructure and affordable housing, environmental protections for the Yahara River, and commitments for renewable energy and well contamination remediation. QTS also offered to cover all public infrastructure and emergency service costs associated with the development.
Local governments across Wisconsin are increasingly considering data center moratoriums. While DeForest's deal with QTS was not finalized, experts like UW-Madison professor Anna Haensch suggest its provisions could serve as a model for future community benefit agreements in Wisconsin and elsewhere, helping communities better negotiate with large data center developers. This project's fate stands in contrast to other Wisconsin data centers, such as those in Beaver Dam, Mount Pleasant, and Port Washington, which are using tax incremental districts without similar wide-ranging community protections.