Why Wisconsin state law can complicate data center moratoriums for county governments
Manitowoc County in Wisconsin enacted a data center moratorium in April, navigating state laws that generally prohibit development moratoriums for counties. This action was taken amidst calls from residents in Northeast Wisconsin to slow down data center development. The Wisconsin Legislature is expected to revisit state-level regulations and tax incentives for data centers in its next session.
Manitowoc County, Wisconsin, successfully passed a data center moratorium in April, a move complicated by existing state laws that typically prevent counties from enacting development moratoriums. This decision came amid growing resident concerns in Northeast Wisconsin regarding rapid data center expansion, leading to calls for measures to slow development.
Richard Loeza, a senior legislative analyst with the Wisconsin Legislative Reference Bureau, explained that state law prohibits counties from implementing "development moratoriums," defined as a ban on rezoning or approving land subdivisions. However, Manitowoc County crafted its resolution with specific language to avoid being construed as a development moratorium, a strategy its corporation counsel believes would withstand legal challenge. State Rep. Shae Sortwell, R-Two Rivers, who serves on the Manitowoc County Board and helped enact the moratorium, indicated it sends a signal to developers like Cloverleaf Infrastructure that the county intends to conduct due diligence.
Neighboring Brown County, facing similar resident concerns, cannot implement a similar moratorium due to its current zoning, further highlighting the complexities of state law. Both Rep. Sortwell and State Sen. Jamie Wall, D-Green Bay, acknowledged the need for state-level review and regulations for data centers, citing concerns that local municipalities often struggle to manage such large-scale developments alone. Wall also suggested a re-evaluation of state sales tax exemptions and other incentives provided to data center developers, noting these are often highly profitable companies. The Wisconsin Legislature is anticipated to revisit the data center discussion early in its next session, which begins in January.