Organizers gather in Menomonie, Wisconsin in early December, 2025 to protest against a $1.6 billion data center proposal in their community. Residents’ concerns over data center development in rural Wisconsin revolve around lack of project transparency, water and energy usage, and financial impact on local tax bases. (Stop the Menomonie Data Center Facebook group)

This story was produced by the Daily Yonder

Blaine Halverson joked that his only exposure to data centers was from the Mission Impossible movies in the 1990s. That was, until one came to his town. Over the last seven months, Halverson’s community of Menomonie, Wisconsin, population 16,700, has become a flashpoint in a growing debate over data center development and local control in the state.

Halverson has lived in Menomonie, which is just over an hour east of Minneapolis, for most of his life. Like many others in his rural community, Halverson didn’t know much about the hyperscale data centers, built by the world’s largest technology companies, that are cropping up across the U.S. to power artificial intelligence. Then, in July 2025, Halverson was on vacation with his wife when he learned of a $1.6 billion data center proposal slated for around 320 acres of farmland on the outskirts of Menomonie.

Immediately, Halverson had questions.

“All of a sudden, I was activated,” said Halverson. “What really activated me was how far along this was, and that the public was just finding out.”

Over the next six months, Halverson and dozens of other concerned Menomonie residents coordinated a local opposition campaign that on January 5, 2026, resulted in Menomonie’s City Council revising a zoning ordinance to bar Balloonist, LLC, the developer representing an undisclosed ‘tech giant’, from moving ahead on construction. 

An attorney for Balloonist LLC did not respond to the Daily Yonder’s request for comment.

Halverson’s frustration about the project’s lack of transparency is one that has echoed throughout the state. In other rural counties and in villages sandwiched between larger cities like Milwaukee, Madison, and Green Bay, data center proposals in places like Beaver Dam, Port Washington, and Caledonia have been met with fierce opposition from residents. Developers eyeing land in Greenleaf, a village outside of Green Bay, and in Grant County, which borders the Mississippi River, have also faced community backlash. Commonly cited concerns revolve around project secrecy and the data centers’ projected energy usage, water needs, and financial impact on communities with small tax bases.

Beyond requiring vast amounts of power and water to keep operations running 24/7, large data center proposals in rural areas often represent a significant, if not dominant, share of the community’s tax levy. This leaves residents fearing what will happen if the planned data centers do not live up to their promises, should the stock market take a turn, the developers go bankrupt, or the technology inside the warehouse-like structures become obsolete. 

“They’re not seeing the long-term risks,” said Prescott Balch about the elected officials who push for data center development in Wisconsin’s rural communities. Balch is a retired software developer and former technology executive at U.S. Bank. He also lives in Caledonia, Wisconsin, a rural village south of Milwaukee whose residents ousted a 244-acre Microsoft data center that was slated for land zoned for agriculture in October of 2025. 

“No investment advisor, for example, would ever let you do [that] with your investment portfolio. They’d get fired for saying, ‘Put all your eggs in this one basket.’ It doesn’t matter how solid that one basket is. It’s still one basket with a lot of risk if it walks out the door,” Balch said. 

A hot spot

Over the last year, rural Wisconsin has become somewhat of a hotspot for data center developers. The allure for Big Tech companies racing to build infrastructure to train and run complex AI models comes in the form of tax incentives, low-cost land, and, in many rural communities, flexible zoning codes. 

But residents like Halverson and Balch are taking notice and starting to organize together. Opposition groups that have formed in communities faced with data center proposals are using digital tools like Facebook and Signal to connect with one another across the Badger State. Now, a growing coalition of rural residents and environmental organizations are urging state legislators to regulate data center development and, in some instances, taking legal action to improve transparency. 

The debate over Wisconsin’s data center boom is both rooted in local governance and relevant to the national conversation about rising electricity costs. In an election year, data center infrastructure has become a political issue, yet it’s one that rural coalition members insist is nonpartisan. What’s on the ballot, including a crowded gubernatorial race, could influence that. 

Why Wisconsin?

To grasp why data centers are coming to Wisconsin, you have to understand a particularly wonky part of the state’s tax code, according to Port Washington resident Michael Beaster. A resident of the rural city just north of Milwaukee, Beaster opposes the $15 billion campus being built by Vantage Data Centers to serve end-users Oracle and OpenAI as part of their $500 billion Stargate campaign to develop AI infrastructure across the U.S.

The wonky policy Beaster is talking about is a tax incremental district, or TID.

In Wisconsin, a TID lets developers pay their property taxes into a separate box from the rest of the community as a way to capture property value growth associated with new projects. During construction, a developer, like Vantage, contributes taxes to this special box to cover infrastructure costs associated with their project, like new roads and power lines. Depending on the terms of the TID, that tax money is then kept in the box until all infrastructure costs have been paid, often a period of 15-20 years.

Typically, this kind of tax policy helps small- or medium-scale developers, like new packing plants or housing developments, pay for their associated infrastructure costs over time. With hyperscale data centers, however, rural residents worry that the high costs of the developments’ power and water infrastructure will rack up for the community to pay while the developers’ taxes sit in a special box. 

“If the village decides to raise the tax levy, it comes off the backs of the current residents only, and that is completely and utterly invisible right now to most people,” said Balch, who worked to reject Microsoft’s proposed data center campus in Caledonia last fall.

In November of 2025, the city of Port Washington approved a TID that enables Vantage to pay upfront for the estimated $175 million in infrastructure costs, plus $91 million for an electrical substation and $187 million in interest, associated with their data center campus, including upgraded water and sewer mains and new power infrastructure. Port Washington will then be responsible for paying Vantage back for those infrastructure costs over time.

The TID is set up as a pool of money to remain open for up to 20 years for the city to draw from to reimburse Vantage. Some residents, including Beaster, have expressed concerns that the financing model could end up raising taxes for locals. On January 2, 2026, a Port Washington-based group of activists filed a lawsuit against the city to challenge the TID.

“People don’t want to see their communities handed over to large corporations,” Beaster said.

Port Washington Mayor Ted Neitzke did not respond to the Daily Yonder’s request for clarification on whether the city’s TID would result in higher taxes for residents.

Last summer, a bipartisan measure in Wisconsin’s legislature updated the state’s tax incremental financing policy to exempt data centers from caps on the amount of money that can be held in a TID. The act mentions both Port Washington and Beaver Dam by name and was signed into law by Democratic Governor Tony Evers on July 8, 2025. In addition to TIDs, Wisconsin also offers a sales and use tax exemption to incentivize data center development. The exemptions are offered on a ladder based on a developer’s intended investment and the host county’s population, with less populous counties requiring less investment. For rural counties, the minimum investment required to claim the exemption is $50 million. 

For Asad Ramzanali, former deputy director for strategy at the White House Office of Science and Technology Policy under the Biden Administration, it is this kind of policy that goes against the idea that data centers should have to pay their “fair share”.

“When the largest companies, the most well-resourced companies, in the history of the world are behind these data centers, it feels particularly unfair to have states level tax breaks for construction,” Ramzanali told the Daily Yonder.

“People should not have to pay increased utility bills. People should not have to pay for transmission lines going up, [and] people shouldn’t have to deal with dirty water sources because of a data center.”

Nonpartisan, but political

With local pushback to data centers picking up steam, state legislators are taking note. Beaster said that’s a change from the attitude that some legislators had a few months ago, when his rural community members were mobilizing against the data center in Port Washington last summer and fall. 

“When we started really getting involved in trying to mobilize, we tried to write letters and emails and stuff to state legislators, and they just weren’t very responsive,” Beaster said. “It felt to us like they were more interested in bringing these things here than regulating them.” 

In early December, 2025, Democrats introduced a bill to regulate data centers and entice them to take climate-friendly steps. Under the proposed legislation, residents would be protected from footing the utility costs associated with data centers. If passed, the bill would also subject data centers to an annual fee, ranging from $2-3 million, to fund clean energy and low-income heating assistance programs. The legislation also includes a measure to hinge state tax incentives, like the sales and use tax exemption, upon data centers using at least 70% renewable energy. 

In January, 2025, Republicans introduced a data center bill of their own, with similarities including mandated reporting on water usage and restrictions on passing development-related utility costs onto families and small businesses. The Republican legislation would also mandate that data centers wanting to use renewable energy would need to build those energy sources, like solar, on the same property. 

The utility provisions in both the Democrat and Republican-backed bills come as the Wisconsin Public Service Commission (PSC) prepares to hear a case in February of 2026, from We Energies, the state’s largest utility, that will determine how much data centers will have to pay for their infrastructure, and how much gets passed onto other ratepayers. 

We Energies has requested a pay structure that holds data centers accountable for 75% of their capital costs. That request has been challenged by the Wisconsin chapter of the Sierra Club, which argues large customers like data centers should be held responsible for 100% of their associated costs.

“This is the decision for how much the largest utility is making large customers pay, and right now the proposal is really bad for an average residential customer,” said Cassie Steiner, a senior campaign coordinator at Sierra Club. The PSC is expected to hand down a decision on the 2026 rate structure in the spring. 

Even as data center regulation captures lawmakers’ attention at the state capitol in Madison, organizers in Menomonie, Port Washington, and Caledonia maintain that local opposition isn’t tied to party. 

“One of the things that has been really amazing to me about this process is that I know the people I’m standing shoulder-to-shoulder with in this group, a lot of them never vote the same way I would when we go into the into the voting booth in November,” Halverson said of his work in Menomonie. 

“If it’s your farmland and your community, you’re an extreme environmentalist, and if it’s your power bill going up, then you’re a fiscal conservative.”

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• Wisconsin’s state budget doesn’t include $24 million that Gov. Tony Evers proposed to address homelessness in the state.

• At the same time, the Trump administration is looking to pull back on resources that address housing, including consolidating a grant for permanent housing solutions into one that can only be used to provide up to two years of temporary housing.

• Rural service providers are looking to philanthropic sources and others across the state to address the growing homeless population in their local communities.

At a recent gathering of social service organizations in Brown County, participants contended with a double gut punch to their efforts to reverse Wisconsin’s recent rise in rural homelessness: almost no new support in the state budget and federal funding cuts.

The Brown County Homeless and Housing Coalition, which focuses its efforts not only on the urban growth around Green Bay but also on the rural towns along the outskirts of the county, consists of at least 45 partner and supporting member organizations — representing the vast complexity of the issue they’re attempting to fix.

Gov. Tony Evers’ budget proposal gave them reason for hope. It included over $24 million of new funding to address homelessness.

The funding would have increased support for programs, including the Housing Assistance Program that provides support services for those experiencing homelessness and the State Shelter Subsidy Grant Program that funds shelter operations. 

But after the Republican-controlled budget committee cut Evers’ proposal, organizations were left with the same state resources they had last year, despite increasing homelessness across the state and looming cuts in federal support.

Joint Finance Committee co-chairs Rep. Mark Born, R-Beaver Dam, and Sen. Howard Marklein, R-Spring Green, who both represent mostly rural districts in Wisconsin, did not reply to multiple requests for comment.

Sen. Romaine Robert Quinn, R-Birchwood, a JFC member who represents the rural northwestern corner of Wisconsin, including the city of Shell Lake where Wisconsin Watch reported on a father and daughter experiencing homelessness, declined an interview request. Sen. Eric Wimberger, R-Oconto, who represents the western part of Brown County, did not reply to multiple requests for comment.

Federal cuts coming for homeless services

President Donald Trump’s proposed federal budget reductions would cut funding for key programs administered by the U.S. Department of Housing and Urban Development (HUD), including grants that many local organizations depend on to provide housing and supportive services. 

The Trump administration’s efforts to reduce federal funding began with a Jan. 27 executive order that temporarily paused many federal grants and financial assistance programs — including those supporting homelessness services — causing immediate disruptions for organizations like RAYS Youth Services in Green Bay.

Josh Benti, program coordinator for RAYS and homeless initiative project director for the Brown County coalition, recalled how his organization’s basic services were abruptly halted, leaving it unable to support a child in need.

Benti’s organization provides services designed to promote stability and independence for youth up to age 24. They include placement in licensed foster homes, similar to emergency shelter stays.

Shortly after Trump signed the order in January, Benti received a text from his boss saying the organization could no longer move forward with placing a child in a host home. He had to inform the child it was uncertain whether the program would be funded. 

Even after federal funds were reinstated weeks later, disbursement delays further affected how employees were paid. Benti’s role, originally salaried, was switched to hourly so that he and his colleagues could maintain their positions.

Benti explained that because RAYS’ federal funds are matched by private grants, the organization’s development staff has begun applying for grants across the state. The organization seeks to expand its services and collaborate with statewide partners to become “too big to fail.” 

“We can’t do it all by ourselves,” Benti said. “We need those funds to take care of those pieces we do every day.”  

Trump’s big bill brought new limitations to RAYS through changes to social safety net programs, such as provisions introducing new work requirements for Medicaid and the Supplemental Nutrition Assistance Program, which limited eligibility and access of certain recipients. 

These policy shifts have raised additional concerns about the potential losses to critical areas of the organization, especially Medicaid. Reductions to the federal health care program for low-income people threaten a large portion of Foundations Health and Wholeness, a nonprofit that provides mental health care to uninsured and underinsured individuals, many of whom rely on Medicaid as a source of health coverage.

Carrie Poser, executive director of Wisconsin Balance of State Continuum of Care — a nonprofit committed to ending homelessness — pointed out that Medicaid cuts, along with restrictions on food stamps, won’t only affect people experiencing homelessness directly. 

“It will impact those living in poverty who are maybe just … a paycheck away from becoming homeless, and now you’ve just hit them with the potential of losing their health insurance, or losing access to food,” Poser said.

The organization manages a variety of federal grants, including funding for Coordinated Entry Systems that prioritize housing resources based on need, as well as a large federal Rapid Re-housing project of more than $5 million focused on domestic violence survivors.

Trump calls for shift from permanent to temporary housing

Trump’s budget proposal could eliminate federal funding for the Continuum of Care program, funneling those resources into state grants for up to two years of housing assistance. The shift would eliminate Permanent Supportive Housing, which is geared toward homeless individuals with disabilities. Under current law, those temporary housing grants can’t be used for permanent housing.

Trump’s budget also would zero out the funding for the Housing Opportunities for Persons with AIDS program.

“The top-line takeaway is that rural and suburban communities are going to suffer the most loss,” said Mary Frances Kenion, chief equity officer at the National Alliance to End Homelessness.

About 48% of Wisconsin’s permanent supportive housing is currently funded through Continuum of Care dollars. Areas served by the outstate organization rely on federal funding for roughly 41% of their homelessness services budget.

The outstate organization also receives Housing Assistance Program grants, which it subgrants to organizations aiming to address specific gaps in their communities and offers them support that may not be available through federal funding.

Without added state support, the organization can’t expand its efforts to end homelessness, though it can maintain current levels. Currently, Housing Assistance Program funds support half a dozen projects outside Milwaukee, Dane and Racine counties, a limited reach that additional funding would have broadened for the organization.

Additionally, more state funding for shelter operations could have helped shelters pay more staff and reopen after many closed during the COVID-19 pandemic, Poser said.

Now, as the demand for shelter continues to rise, other service providers also face limited resources to expand their services.

The shelter funds provide support to the Northwest Wisconsin Community Services Agency for operating its shelters. However, CEO Millie Rounsville said the funding has remained flat for years, despite growing demand for services.

“As you’re trying to create additional projects … there’s no additional resources to be able to support those and actually would take away resources from other communities because the pot is the same size and the programs are expanding, which means that there’s less money to go around, and no new money to address any of the increase in the unsheltered,” Rounsville said.

With no increases in funding, expanding programs or launching new initiatives to meet rising homelessness has become increasingly difficult.

As several housing assistance organizations face limitations to state and federal funding to maintain many of their day-to-day programs and services, Kenion urges them to take stock of existing resources and make contingency plans.

Kenion advised communities to map out what services they currently offer, whether that’s through permanent supportive housing or homelessness programs, and to clearly understand where their funding may come from. She added that rural communities, in particular, should begin having difficult conversations about their funding landscape and work to broaden partnerships such as those with faith-based groups, clinics, small businesses, victim service providers and philanthropies.

Rural areas face challenges accessing support

Don Cramer, a researcher for the Wisconsin Policy Forum, points to some of the difficulty rural areas might face in obtaining funding to address homelessness. 

In rural parts of the state, limited staff capacity could mean that local agencies miss out on some of the state and federal funding opportunities that their urban counterparts are able to obtain. Cramer suggested that larger cities with high homeless populations, like Milwaukee, typically have more staff and time to dedicate to pursuing grants, while smaller counties, even those with higher homeless populations, often don’t have the employees who focus their time exclusively on applying for these funds.

Cramer also pointed out that rural communities often struggle not only to secure funding, but to capture the scope of homelessness in their areas, making it even harder to recognize and address the issue.

As Wisconsin Watch previously reported following the winter “point in time” count, one of two annual nights in the year that portray the number of people experiencing homelessness across the country, the state’s mostly rural homeless population reached 3,201 last year, its highest number since 2017.

The reported number of homeless students in Wisconsin last year reached its highest number since 2019, with 20,195 students experiencing homelessness, according to a report by the Wisconsin Policy Forum. Last year was the third consecutive year the number of reported homeless students has increased after hitting its lowest level in 2021 during the pandemic. 

The sheer difference in the number of students experiencing homelessness and individuals experiencing homelessness further highlights how the methodology for quantifying homelessness across the state, which is used to determine a community’s level of need, “doesn’t make sense for those who don’t know the differences in the methodologies,” Cramer said. 

The standards of counting between Wisconsin’s Department of Public Instruction (DPI), which would count a student who may be sleeping on a relative’s couch in its homeless count, and HUD, which wouldn’t, illustrate the strict guidelines that likely don’t come close to representing the full picture of homelessness in the state. 

“When you think of the (homeless counts), many assume those are undercounts,” Cramer said. “But I think the students would be pretty accurate — because schools are working with a majority of the state’s student population, and kindergartners aren’t hiding that information.”

‘We need to take into account our increasing need’

Katie Van Groll sees this issue firsthand through her work as the director of Home Base, an arm of the Boys and Girls Club of the Fox Valley that specifically works with youth up to age 21 who are experiencing challenges related to housing insecurity. 

Van Groll added that the difference between the HUD and DPI counts contributes to a systemic misunderstanding of what homelessness looks like for young people. For example, couch surfing is much more common in young people experiencing homelessness than it is for adults, but because the HUD count doesn’t include that frequent circumstance, the difference between being sheltered and being homeless “almost gets forgotten,” Van Groll said. 

“What that does is it makes them ineligible for other funding and other resources because they don’t meet the HUD definition until they are literally on the street, and that’s what we’re trying to avoid,” Van Groll said. “The sooner that we can intervene, the quicker we can disrupt that cycle and change those generational experiences of homelessness.”

While the number of youth experiencing homelessness in the state continues to rise, Evers’ budget proposal to increase funding for the Runaway and Homeless Youth program, which already operates on a difficult-to-obtain regional lottery system that Home Base competes for each year alongside other youth-oriented programs, was denied an increase in funding. 

Only one program serving runaway and homeless youth per region receives funding by the state, which in itself “is a disservice,” Van Groll said. “Right now, we’re lucky in that we are in a current federal grant so we are not looking at reapplying to the (state) funding that was just released, but we expect that other programs may not be in the same situation.” 

“Many people are going to be like, ‘well, what are you complaining about? You’re not losing any money,’” Van Groll said. “But you kind of are because we need to take into account the state of our economy, we need to take into account our increasing need, we need to take into account the fact that losing those decreases likely impacts those programs just like it does ours, which means it continues to be largely competitive across the state, inhibiting some programs from accessing those fundings.”

Meaghan Gleason, who leads the Brown County count, announced during the Brown County coalition meeting on July 9 that the current number of volunteers signed up for the summer homeless count is lower than the last two counts. She asked attendees to contribute in any way they can. 

“I would encourage you to contact your friends, family, community members, board members, funders — anyone who may be interested in going out and helping and seeing the work that we do in action,” Gleason said. 

In a phone interview on July 16, Gleason said that after reaching out to the coalition for more volunteers, involvement for the July 23-24 overnight summer count in Brown County will now see the highest number of volunteers she’s directed since taking on the role two years ago.

Homeless advocates added that there’s been an increase in encampments, with people experiencing homelessness moving deeper into the woods as the summer goes on. 

Amid the wet and hot season lately, Peter Silski, Green Bay homeless outreach case coordinator, explained that many of the people he encounters have no other choice than to build simple tents and shelters. 

Through conversations with people experiencing homelessness and connecting them with local, grassroots programs, Silski said the goal is “to empower individuals to become self-sufficient, but we want to make sure we’re there for them for as long as they need us.”

Wisconsin Watch reporter Margaret Shreiner contributed to this report.

‘We can’t do it all by ourselves’: As rural homelessness grows in Wisconsin, Republicans balk at boosting support 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.