Data centers are a big political issue; what should Wisconsin do about them?

A server room in a data center. (Photo by Getty Images)
There’s no bigger issue in the Wisconsin governor’s race than data centers. Republican candidate Tom Tiffany, who was hoping to run on not canceling Thanksgiving, quickly pivoted after democratic socialist candidate Francesca Hong lost the primary, moving to capture the issue that galvanized Hong’s supporters: opposing data center development. Tiffany spent the first week of the general election campaign attacking his Democratic rival by labeling him “Data Center David Crowley,” warning that Crowley’s pro-data-center policies would mean “our lakes run dry, family farms paved over.”
Crowley, meanwhile, has not come up with a message that satisfies the Hong supporters who embraced her call for a statewide moratorium on data center construction. Neither he nor Tiffany favors a moratorium. In fact, as Baylor Spears reports, despite Tiffany’s attacks, the two candidates don’t appear to be very far apart on data center regulation. Both say they will protect communities’ right to reject new data center construction; both say the state must ensure that ratepayers aren’t stuck with higher utility bills; both promise to protect Wisconsin’s land and water and insist on transparency in data center contracts. Both have also taken money from data center supporters — Crowley from the building trade unions that want to construct the new facilities, and Tiffany from the lobbyist for the Wisconsin Data Center Coalition, which supports nondisclosure agreements and data center tax exemptions.
Crowley, as the county executive of an industrial hub that has suffered from the loss of manufacturing jobs, has a more optimistic view of the job-creation and economic development potential of new technology than many voters in Wisconsin, a majority of whom see proposed hyperscale data centers as eyesores and energy hogs. But Tiffany, as Spears reports, is not that different. He voted for a bill in Congress that would have banned states from regulating AI and has called data centers “exciting new technology.”
What specific policies should Wisconsinites demand from their political leaders on data centers?
“There’s a simple answer,” says Joel Rogers, a University of Wisconsin professor who created a center for the study of “high-road” development based on shared prosperity, environmental sustainability and democracy. “First, inspect everything that has already been approved and make sure it conforms to labor, environmental and design standards,” Rogers says. “Second, no public money for people who are richer than Mammon. We are spending hundreds of millions on tax breaks we can’t afford on these data centers. That should stop immediately.”
Rogers is not against data centers in general. “Water and noise are the big issues,” he says. He wants to see strict regulation that compels companies to design structures that dampen noise pollution. Water use, he says, is not a big concern inside data centers with closed-loop, water recycling systems. Rather, it’s the massive generation of electricity that, without intelligent planning, will tax Wisconsin’s water supply. “If you produce energy in an inefficient way, it creates lots of excess heat,” he explains. “The way to cool it is with water. That’s catastrophic.” Discharging warm water into lakes and streams causes thermal shock, fish kills and algal blooms.
But creating a more efficient and sustainable electric grid is, in Rogers’ view, a big potential upside of data center development. His hope is that data centers could spur serious investments in renewable energy and reduce the tremendous waste involved in our current electricity-generation system. That could mean more plentiful, cheaper power for ratepayers and a more rational, environmentally friendly energy grid.
“If you increase power production investment, that should be good for ratepayers, not bad,” Rogers says. “A bigger base means lower rates.”
The problems with data center development currently is “intermediate,” in Rogers’ view. “States are trying to attract data centers, there’s inappropriate siting, like in dry areas. It messes up farming and ordinary water usage.”
“But if we are serious about climate we should be for heat pumps for all … electrify everything,” he adds.
Rogers’ position is similar to that of a candidate who didn’t get a lot of traction in the Democratic gubernatorial primary — state Sen. Kelda Roys.
Roys’ plan to stop unregulated data center development includes passing a bill that gained 49 cosponsors in the Legislature, laying out sturdy environmental, labor and transparency regulations. In addition, Roys called for repealing tax subsidies and incentives for data center developers (something Crowley has declined to endorse), creating a statewide public negotiation team to help local communities drive a harder bargain with Big Tech firms, and demanding big upfront payments from those firms to fund a clean energy infrastructure bank.
“Wisconsin has no fossil fuels, so every dollar we spend on hydrocarbons leaves our state,” Roys points out. Investing in clean energy is good for the state economy as well as the climate. Her plan leverages data center development to make a faster transition to a green economy.
That’s a step further than Crowley has gone, although he is campaigning on a pledge to make data center developers “bring your own clean energy.” Tiffany has been attacking Crowley precisely for his clean energy pledge, warning that it will disfigure the landscape by blanketing Wisconsin with solar panels. A recent Tiffany campaign press release declared that “using solar to generate the equivalent annual electricity needed for just the Mount Pleasant and Port Washington data centers would consume roughly 100,000 acres of Wisconsin land.”
But just saying no to both renewable energy and data centers does not amount to a plan. For one thing, there are already 47 existing data centers in Wisconsin. Local communities are struggling over how to regulate them separately all over the state. Melissa Scanlan, the director of UW-Milwaukee’s Center for Water Policy, told the Examiner’s Henry Redman that Wisconsin’s failure to address data centers comprehensively will soon put a big strain on the state’s utilities.
“Doing it in a piecemeal way, where you’ve got local governments deciding about hosting, but then utilities that are committed to supplying the electricity and water, is going to very quickly bump up against the realities of our ability to generate electricity in a responsible way,” Scanlan told Redman.
Rogers remains optimistic. “Data centers are coming, whether they are in Wisconsin or nearby it doesn’t matter,” he says. He doesn’t favor a moratorium in one state that drives massive hyperscale data center development over the border, when everyone in the region relies on the same water resources. “I’m not for rivalry and scarcity,” he says.
Instead, he maintains, thoughtful policymakers could address worries about data centers by creating policies that address the larger, existential environmental issues that confront us all.
Imagine that.