We Energies CEO Says Another Data Center Announcement is Coming

Scott Lauber, president and CEO of WEC Energy Group, parent company of We Energies, expressed optimism about upcoming hyperscale data center projects in Wisconsin. Speaking during an earnings call, Lauber indicated that another major announcement is expected this fall, following the Public Service Commission's approval of special rates for very large customers, a move influenced by data center development. Despite this, utility regulators rejected a We Energies proposal that would have allowed customers to share some costs associated with powering data centers, instead requiring tech companies or developers to cover all related power plant and transmission line expenses. The energy demand from existing projects, including Microsoft's $20 billion investment in Mount Pleasant and Vantage Data Centers' $15 billion campus in Port Washington, is projected to increase demand by 3.9 gigawatts over the next five years, enough to power 4.3 million homes. Lauber noted these companies have the potential to double energy demand through additional development at these sites. Environmental groups, including Sierra Club Wisconsin and Clean Wisconsin, have raised concerns that this surging energy demand will lead We Energies to increase its reliance on fossil fuel plants, potentially hindering climate goals and air pollution standards. Both Gov. Tony Evers and WEC Energy Group have set carbon-neutral goals for 2050, but the company has paused near-term carbon reduction targets and delayed the retirement of coal units. We Energies is also seeking approval for a $5.5 billion plan to add nearly 3 gigawatts to the grid, including solar and new gas-fired power plants in Milwaukee and Kenosha counties.