Data center tax breaks already top $1.5 billion, UW researchers find
Wisconsin’s data center expansion has generated billions of dollars in announced investment, including Microsoft’s project in Mount Pleasant and Meta’s project in Beaver Dam. Researchers and critics warn that existing utility customers could bear substantial grid-upgrade costs, while a proposed two-year moratorium failed to advance in the Legislature.
Wisconsin’s data center boom includes Microsoft’s reported $20 billion project in Mount Pleasant, Meta’s development in Beaver Dam and a $15 billion site in Port Washington. Two University of Wisconsin–Madison economists examined the costs of the expansion, including utility investments that could be passed on to existing customers.
The video says regulators recently required the largest customers of We Energies to cover dedicated power costs, but that measure applies to only one utility. Other Wisconsin customers remain responsible for an estimated $63 million in grid upgrades this year, potentially rising to $100 million by 2028. A Democratic-backed two-year moratorium on data center development failed to receive a legislative floor vote, while data center tax breaks have reached $369 million, far above the original estimate. The issue is presented as a major point of contention in the Crowley-Tiffany governor’s race, with polling indicating that most Wisconsin voters believe the costs outweigh the benefits.