Wisconsin utility company executive says more data centers could be on the horizon

Scott Lauber, president and CEO of WEC Energy Group, Wisconsin's largest utility, announced during an earnings call that the company is in discussions with large customers for additional hyperscale data centers. This optimism follows the Public Service Commission's approval of special rates for very large customers, though utility regulators recently rejected a We Energies proposal for customers to share data center power costs, expecting tech companies or developers to cover all associated expenses. The utility projects a 3.9 gigawatt increase in demand over the next five years, driven by Microsoft's $20 billion data center investment in Mount Pleasant and Vantage Data Centers' $15 billion campus in Port Washington. Lauber noted the potential for these sites to double energy demand with additional development, and Microsoft has already begun operations at its Fairwater data center in Mount Pleasant. Environmental groups, including the Sierra Club's Wisconsin chapter, express concern that this surge in demand will lead to increased reliance on fossil fuel plants, undermining carbon neutrality goals set by Gov. Tony Evers and WEC Energy Group. WEC Energy Group plans to invest $37.5 billion over the next five years, with a significant portion dedicated to large customers like data centers. This includes $12.6 billion for renewable energy and $7.4 billion for gas-fired power plants. The company also intends to replace power from the state's only nuclear plant with gas-fired units due to high energy prices and has paused near-term carbon reduction goals, delaying coal unit retirements. We Energies is seeking regulatory approval for a $5.5 billion plan to add almost 3 gigawatts to the grid, including solar and new gas-fired plants.