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Anticipated spikes in demand for energy to supply Wisconsin’s data center building boom come on the heels of decades of declining power and water use, according to a new report.

A Wisconsin Policy Forum analysis shows there are more than 40 data centers operating in Wisconsin with another four planned. The sprawling facilities host computer servers, which store data and support a global surge in the use of artificial intelligence.

The data center building boom has been met by local opposition groups concerned about the facilities’ resource needs. But the Policy Forum report shows it’s all happening after years of declines in demand for electricity and water.

Using projections submitted to the Wisconsin Public Service Commission by utility companies, the Policy Forum estimates the state’s peak electrical demand is expected to increase to around 17 gigawatts by 2030, driven largely by data centers. In 2024, Wisconsin’s peak demand was rated at 14.6 gigawatts. Over the past 20 years, total electricity sales have fallen by 9% over the past 20 years.

Wisconsin Policy Forum Senior Research Associate Tyler Byrnes told WPR a big part of the decline since 2005 is due to fewer commercial customers paired with more energy efficiency measures. He said during that span, utilities have pulled aging, coal-fired power plants offline and shifted toward more renewable energy. 

“Into that landscape, now we’re seeing these really big data centers come online,” said Byrnes.

Some utilities in Wisconsin are expected to seek state permission to build new power plants or expand existing ones to meet the data center demand. Byrnes said that will bring a need for more transmission lines, though local impacts will vary depending on where the data centers are located.

The Policy Forum’s analysis shows most existing facilities are in south central and southeastern Wisconsin. With other large-scale data centers planned for more rural areas like Beaver Dam and DeForest, he said utility companies may need to build out more infrastructure.

Wisconsin water demand has fallen for decades. Will data centers impact rates? 

Another major concern raised during the data center debate is the facilities’ hefty water demands.

Opponents have complained that developers haven’t been transparent about how much water they’ll need to cool computer servers. In September, environmental advocates sued the city of Racine to force the release of projected water needs of a $3.3 billion data center campus located at the former Foxconn site in Mount Pleasant. The city released figures showing the project will need more than 8 million gallons of water per year. 

To put that into context, the Policy Forum looked at historical water sales reported by the Racine Water Works, which will supply the Mount Pleasant data center project. Between 1997 and 2022, the utility saw water sales decline by 2.1 billion gallons annually. Byrnes said that taken as a whole, the demand for water from data centers is “a drop in the bucket” in a lot of cases.

As with electrical demand, Byrnes said water demand has decreased due to fewer industrial customers and increased efficiency efforts. Because cities like Racine still need to maintain the same level of infrastructure, which is more expensive due to inflation, the revenue from each gallon of water sold has to be spread further. That means potential rate increases.

Byrnes said data centers have been turning to closed-loop cooling systems, which use less water, but cities like Racine would still be selling more water, which would help cover fixed infrastructure costs. 

“Potentially, it could maybe blunt some of the (water rate) increases,” Byrnes said. 

DeForest, other local governments grapple with data center proposals

With the rise in data center developments in Wisconsin, local governments and state lawmakers are working to figure out how to regulate them.

The DeForest Village Board recently took no action on a citizen petition calling for referendum votes before any data center project could be approved.

In Menomonie, the city council voted to restrict where and how data centers can be built months after the mayor halted a $1.6 billion proposal. A similar zoning ordinance is being considered in the city of Jefferson.
 
At the same time, Republican and Democratic state lawmakers have proposed different ways to regulate data centers. One GOP bill is aimed at ensuring data centers and not other customers would pay for any required improvements to the state’s power grid. The Democratic bill is aimed at requiring data centers to get the bulk of their power from renewable sources.

This story was originally published by WPR.

Data center boom follows decades of declining electricity and water use in Wisconsin is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

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Anticipated spikes in demand for energy to supply Wisconsin's data center building boom come on the heels of decades of declining power and water use, according to a new report.

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Joel Brennan, former top Cabinet official for Gov. Tony Evers, has joined the Democratic primary for governor, vowing to “stand up to Trump’s dysfunction” and be “laser-focused” on improving people’s lives if elected.

In a campaign launch video released Thursday, Brennan discussed growing up with 10 siblings in Wisconsin in a family that was “long on potential, although sometimes a little short on resources.” Brennan talks about working a variety of jobs to get through college and boasts that his first car didn’t even have working taillights.

Brennan described getting a call from Evers in 2018, asking him to lead the Department of Administration “as his top Cabinet official.” Brennan served in that role from 2019 through 2021. During that time, he said the administration put the state on firmer financial footing and generated a state budget surplus of nearly $4 billion. He also said the administration “stood up to the extremists” and offered assistance to thousands of small businesses during the COVID-19 pandemic.

“But today, thanks to Donald Trump’s chaos and incompetence, the numbers just aren’t adding up for Wisconsin families,” Brennan says in the video. “Costs, like everything else, are out of control. And coming from a family that had to make every dollar count, I know what that feels like.”

Brennan’s video ends with a nod to the race for the Legislature, where Democrats are hoping to flip Republican majorities for the first time in more than a decade. He said with “fair maps” and a Democratic governor, “we can stay true to our values and deliver change.”

Brennan is currently the president of the Greater Milwaukee Committee. Prior to joining Evers’ administration, he was CEO of the Discovery World museum for 11 years. He also worked previously for the Redevelopment Authority of Milwaukee and the Greater Milwaukee Convention and Visitors Bureau. He was a legislative assistant to Democrat Tom Barrett when Barrett served in Congress.

Brennan joins an already crowded field of Democrats vying for the party’s nomination. Other candidates to announce include Lt. Gov. Sara Rodriguez, Milwaukee County Executive David Crowley, Madison state Sen. Kelda Roys, Madison state Rep. Francesca Hong, former Wisconsin Economic Development Corp. CEO Missy Hughes and former Lt. Gov. Mandela Barnes.

Only two Republicans — U.S. Rep. Tom Tiffany, R-Minocqua, and Washington County Executive Josh Schoemann — are running for the GOP nomination at this point. It’s been reported that former Republican gubernatorial candidate Tim Michels, who lost to Evers in 2022, and former Republican U.S. Senate candidate Eric Hovde, who lost to Tammy Baldwin in 2024, are also considering entering the 2026 race for governor.

This story was originally published by WPR.

Joel Brennan, former top Tony Evers aide, enters race for Wisconsin governor is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

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The post Former Evers cabinet secretary Joel Brennan enters race for governor appeared first on WPR.

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