PSC approves Alliant–Meta data center power deal while criticizing ‘black box’ approach

The Wisconsin Public Service Commission (PSC) on Thursday approved a one-off power contract between Alliant Energy and Meta, which is developing a data center campus in Beaver Dam. The approval, however, came with a significant condition: Alliant Energy must propose a standardized plan for supplying power to future data centers, aiming to increase transparency and shield other customers from potential cost burdens. Commission Chair Summer Strand and fellow commissioners Kristy Nieto and Marcus Hawkins voiced reservations about the initial lack of a standardized payment structure, criticizing Alliant's "black box" approach of negotiating contracts individually. This contrasts with a model previously approved for We Energies, which covers all future hyperscale data center customers. Despite their concerns, the commissioners approved the modified agreement, acknowledging that the Beaver Dam campus is set to open in 2027 regardless, and delaying the contract further could pose greater financial risks to other customers. The Meta facility in Beaver Dam is projected to use 220 megawatts at peak, a demand six to eight times higher than Beaver Dam's current peak usage, though smaller than the Microsoft and Vantage data centers in Mount Pleasant and Port Washington. Alliant's assistant vice president, Rebecca Valcq, testified that the data center would benefit customers through more efficient use of infrastructure, spreading fixed costs, and generating an estimated $2.1 million in annual tax revenue. The utility's initial request for approval included extensive redactions of contract terms, which faced pushback from ratepayer advocates and the PSC. Commissioners also noted that while the data center may not immediately require new power plants, it could influence the retirement timelines of existing Alliant facilities. The PSC's directive aims to prevent future deals from being negotiated behind closed doors, mirroring transparency issues observed with non-disclosure agreements sought by data center developers from local governments.