Competition intensifies over who builds Wisconsin’s grid as data centers drive power demand

The Midcontinent Independent System Operator (MISO), which manages the power grid for much of the Upper Midwest, recently reversed a critical decision regarding the construction of substations in eastern Wisconsin. Initially, MISO had awarded a $350 million transmission project to Viridon, a developer backed by the investment firm Blackstone, citing its low bid. However, MISO later reassigned the substations to the American Transmission Company (ATC), Wisconsin's largest transmission developer, due to "uncertainty" that Viridon could clear administrative hurdles and meet the accelerated timeline. The urgency stems from a $15 billion data center being developed by Vantage Data Centers in Port Washington, which is slated to come online by early 2028. ATC argued it was better positioned to complete the necessary infrastructure, including three new substations, ahead of this deadline. While MISO's original project was focused on regional reliability, ATC's broader $1.3 billion proposal, currently under review by Wisconsin's Public Service Commission (PSC), directly addresses the Port Washington campus's vast energy needs. This "tug-of-war" highlights an ongoing debate over competitive bidding for transmission projects, mandated by the Federal Energy Regulatory Commission (FERC) in 2011. Ratepayer advocacy groups, like Wisconsin’s Citizens Utility Board, support competitive bidding to lower costs, while established utilities like ATC have lobbied for "right-of-first-refusal" (ROFR) laws to protect their local territories, arguing they ensure timely completion and local expertise. Although ROFR laws have repeatedly failed in Wisconsin's Assembly, the MISO reassignment effectively gives ATC the lead on this critical portion. The final cost burden and infrastructure plans for the Port Washington data center's power supply still await approval from the PSC, determining how much Wisconsin ratepayers will contribute.