How could lawmakers regulate data centers? Wisconsin Policy Forum offers options
A Wisconsin Policy Forum report outlines options for state lawmakers to regulate data centers and manage their fiscal and infrastructure impacts. The report examines agreements in Janesville, Mount Pleasant, Port Washington, Beaver Dam and DeForest, including tax protections, incentives and the rising demand for electricity transmission and generation.
The Wisconsin Policy Forum reviewed data center agreements and proposed agreements in Janesville, Mount Pleasant, Port Washington, Beaver Dam and DeForest. President Jason Stein said local governments have sought protections such as guaranteed property values to reduce the financial risks of projects that may not be fully built or assessed as projected. Vantage is developing a large data center site in Port Washington.
The report says Wisconsin lacks comprehensive statewide data center regulations and highlights challenges involving tax-increment financing, property-tax limits and state sales-tax exemptions for data center construction materials. It also urges policymakers to consider how developers should share the costs of additional electricity generation and transmission as data center demand increases.