A child rests among signs at Milwaukee climate march. (Photo by Isiah Holmes)

The federal administration’s decision to rescind the Environmental Protection Agency’s Endangerment Finding may sound technical. In reality, it targets the legal foundation that has allowed the United States to regulate climate pollution for more than a decade. For Wisconsin, the move introduces new uncertainty just as communities, farmers and businesses invest in cleaner energy, efficiency and more resilient infrastructure.

The 2009 Endangerment Finding concluded that greenhouse gases threaten public health and welfare. Courts have upheld that determination repeatedly. Eliminating or weakening it does not change the science behind climate change, but it could reshape how power plants, vehicles and industrial facilities are regulated. That shift carries consequences for states already dealing with smoky summers, heavier rainfall and rising infrastructure costs.

Wisconsin’s clean energy economy has expanded steadily, often without much attention. Renewable projects now generate enough electricity to power about 560,000 homes. Roughly 75,000 residents work in clean energy fields, and more than 350 Wisconsin companies supply technologies or services that reduce energy use or emissions. Together, these efforts reflect a broader reality: climate progress here tends to be practical and locally driven because it lowers costs and strengthens communities.

Examples are visible across the state. School districts and municipal buildings are cutting operating expenses through efficiency upgrades supported by Focus on Energy programs. Tribal and low-income households are receiving targeted weatherization investments that improve comfort and reduce utility bills. Builders and manufacturers are adopting higher performance standards to reduce long-term risk.

Federal rollbacks do not automatically halt these efforts, but they complicate financing and planning. Investors and local governments rely on predictable rules. When national standards shift, projects that once appeared viable can stall.

Some of the clearest examples are unfolding in rural Wisconsin. The SolarShare Wisconsin Cooperative is expanding community-owned solar projects that keep energy dollars circulating locally while pairing installations with pollinator habitat or sheep grazing. Hidden Springs Creamery installed a 50-kilowatt solar system to power its creamery and farm operations while continuing to produce artisanal cheeses. These projects reflect a simple idea gaining traction across the state: build it here, power it here, prosper here.

Wisconsin’s dairy sector has also become a testing ground for methane reduction strategies. Anaerobic digesters, renewable natural gas systems and advanced manure management technologies are already operating throughout the state. They reduce emissions while improving water quality and creating new revenue streams for farmers. If federal climate incentives weaken, fewer of these projects may move forward, leaving producers to absorb more risk and potentially slowing innovation that began here.

At the same time, new pressures are emerging from the rapid growth of artificial intelligence and large-scale data centers. Utilities are proposing infrastructure expansions to meet rising electricity demand, raising questions about cost allocation, water use and oversight. Small businesses, tribes, farmers and rural communities are organizing around siting decisions that affect farmland and ratepayers.

This week, the Power Wisconsin Forward campaign, supported by the Clean Economy Coalition of Wisconsin and more than 50 partner organizations, urged the Public Service Commission to ensure that data center costs do not shift onto ordinary customers. The debate highlights a broader reality. Wisconsin’s energy landscape is changing quickly even as federal climate policy moves in the opposite direction.

It would be misleading to suggest Wisconsin’s political environment has become less polarized. Recent legislative sessions show deep divisions and limited consensus on climate priorities. That context makes federal rollbacks more consequential. Without consistent national guardrails, states rely more heavily on local initiatives and market forces, which can advance progress but unevenly.

Legal challenges to the EPA decision are likely, but outcomes remain uncertain. In the meantime, utilities, farmers and local governments must make decisions without clear signals from Washington.

The practical question facing Wisconsin is not whether federal politics will shift. It is whether the state continues investing in projects that already deliver measurable results. Efficiency upgrades lower utility bills. Community solar keeps energy spending local. Methane reduction technologies help farms manage waste while improving soil and water conditions.

In a politically diverse state, climate progress rarely looks dramatic. It often appears as quieter momentum built through local partnerships and incremental gains. The federal rollback raises real risks, but it does not erase the infrastructure or collaboration already underway.

What happens next will be shaped less by national rhetoric and more by decisions made at the Public Service Commission, in county zoning meetings and on working farms across Wisconsin.

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Wisconsin stands at a pivotal moment.

Artificial intelligence, cloud computing and hyperscale data centers are arriving quickly, bringing enormous demand for electricity and water. The real question is not whether these investments will come, but how we manage them and who pays the costs if we get it wrong.

As a purple state, Wisconsin has long shown that good energy policy is practical, not ideological. Families want affordable bills. Businesses want reliable power. Communities want clean water and economic opportunity. That same common-sense approach must guide how we respond to rapid data center growth.

An unprecedented load and a real affordability risk

The scale of proposed data centers is unlike anything Wisconsin has seen.

Just two projects, one in Port Washington and another in Mount Pleasant, have requested nearly four gigawatts of electricity combined. That is more power than all Wisconsin households use today.

Meeting this demand will require massive investments in power plants, transmission lines, substations, pipelines and water infrastructure. But under Wisconsin’s current utility model, these costs are not paid only by the companies driving demand. They are instead spread across all of us who pay electric bills, including families, farms and small businesses that won’t benefit from data center power.

For small businesses operating on thin margins, even modest increases in electric or water rates affect hiring, pricing and long-term viability. In rural communities with fewer customers sharing infrastructure costs, the impact can be even more severe.

This concern is already becoming real. Utilities are citing data center demand to justify new methane gas plants and delaying coal plant retirements. Utilities doubling down on fossil fuels should give every one of us pause.

Why costly gas is the wrong answer

Building new methane gas plants for data centers would lock customers into decades of fuel price volatility, even though cleaner options have become cheaper and faster to deploy.

Wind, solar and battery storage can come online far more quickly than fossil fuel plants and without exposing families and businesses to unpredictable fuel costs. Battery storage costs alone have fallen nearly 90% over the past decade. 

Across the country, these tools are replacing methane gas plants in states as different as Texas and California.

There is also a serious risk that we will pay higher bills for decades, even when data centers stop using those methane gas plants. In Nevada, a major utility has acknowledged that only about 15% of proposed data centers are likely to be built. When speculative projects fall through, all of us are left to pay for infrastructure we actually never needed.

This is not ideology. It is basic financial risk management, and basic fairness.

Clean energy is the lowest-cost path

Wisconsin policymakers and elected officials need to put guardrails into place to protect everyday residents from the AI bubble that’s threatening the state. The core principle? That data centers operate on 100% clean energy, not as a slogan, but because it is the lowest-cost and lowest-risk option over time.

A smart framework would require developers to:

• Supply at least 30% of their power from on-site and Wisconsin-based renewable energy.
• Offset additional demand through energy efficiency, demand response – at least 25% of peak capacity – and smart grid flexibility.
• Participate fully in utility efficiency and renewable energy programs rather than opting out.

Each data center project should require a legally binding Community Benefit Agreement that clearly defines community protections and benefits, negotiated among developers, local governments, neighborhood-based organizations, and underserved communities.

This approach reduces peak demand, lowers infrastructure costs and protects existing customers while allowing data centers to advance.

Major companies like Microsoft, Google and Meta have already publicly committed to operating on carbon-free energy. We need to hold them to that. Wisconsin risks losing our competitive advantage if we default to gas-heavy solutions instead of offering clean, flexible grids.

Water is a non-negotiable constraint

Energy is not the only concern. Water matters just as much.

A single hyperscale data center can use millions of gallons of water per day, either directly for cooling or indirectly through power generation. In communities with limited water systems, that can crowd out agricultural use and raise residents’ water bills.

Wisconsin should require closed-loop cooling systems, full accounting of direct and indirect water use and ongoing public reporting to ensure local water supplies are protected.

A practical path forward

Wisconsin does not have to choose between economic growth and affordability. We can do both if we insist on clear guardrails.

That means requiring data centers to pay the full cost of service, powering growth with clean energy first and protecting water resources and ratepayers from unnecessary risk.

Data centers are coming. The question is whether Wisconsin families and small businesses will be partners in that growth or be left paying higher bills for decades to come.

If we choose smart clean power over costly gas, Wisconsin can lead.

For more information

Check out the Clean Economy Coalition of Wisconsin (CECW) Data Center Accountability Framework, a statewide roadmap for policymakers to manage the rapid expansion of large-scale data centers in the state.

John Imes is co-founder and executive director of the Wisconsin Environmental Initiative and village president of Shorewood Hills. He has spent decades working with businesses, policymakers and local governments to advance pragmatic clean energy and infrastructure solutions that protect ratepayers, strengthen communities and support Wisconsin’s economy.

Opinion: How Wisconsin can protect consumers and the environment during the data center boom 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.

Data centers are mushrooming all over the country, with many planned projects on deck in Wisconsin. We need to get ahead of them by putting in place protections for the state's energy and water resources. (Photo by Dana DiFilippo/New Jersey Monitor)

Wisconsin stands at a pivotal moment.

Artificial intelligence, cloud computing, and hyperscale data centers are arriving quickly, bringing enormous demand for electricity and water. The real question is not whether these investments will come, but how we manage them and who pays the costs if we get it wrong.

Families want affordable bills. Businesses want reliable power. Communities want clean water and economic opportunity. We need a  common-sense approach to guide how we respond to rapid data center growth.

An unprecedented load and a real affordability risk

The scale of proposed data centers is unlike anything Wisconsin has seen.

Just two projects, one in Port Washington and another in Mount Pleasant, have requested nearly four gigawatts of electricity combined. That is more power than all Wisconsin households use today.

Meeting this demand will require massive investments in power plants, transmission lines, substations, pipelines and water infrastructure. But under Wisconsin’s current utility model, these costs are not paid only by the companies driving demand. They are instead spread across all of us who pay electric bills, including families, farms, and small businesses that won’t benefit from data center power.

For small businesses operating on thin margins, even modest increases in electric or water rates affect hiring, pricing and long-term viability. In rural communities with fewer customers sharing infrastructure costs, the impact can be even more severe.

This concern is already becoming real. Utilities are citing data center demand to justify new methane gas plants and delaying coal plant retirements. Utilities doubling down on fossil fuels should give every one of us pause.

Why costly gas is the wrong answer

Building new methane gas plants for data centers would lock customers into decades of fuel price volatility, even though cleaner options have become cheaper and faster to deploy.

Wind, solar and battery storage can come online far more quickly than fossil fuel plants and without exposing families and businesses to unpredictable fuel costs. Battery storage costs alone have fallen nearly 90% over the past decade. 

Across the country, these tools are replacing methane gas plants in states as different as Texas and California.

There is also a serious risk that we will pay higher bills for decades, even when data centers stop using those methane gas plants. In Nevada, a major utility has acknowledged that only about 15% of proposed data centers are likely to be built. When speculative projects fall through, all of us are left to pay for infrastructure we actually never needed.

This is not ideology. It is basic financial risk management, and basic fairness.

Clean energy is the lowest-cost path

Wisconsin policymakers and elected officials need to put guardrails in place to protect everyday residents from the AI bubble that’s threatening the state. The core principle should be that data centers operate on 100% clean energy, not as a slogan, but because it is the lowest-cost and lowest-risk option over time.

A smart framework would require developers to:

• Supply at least 30% of their power from on-site and Wisconsin-based renewable energy
• Offset additional demand through energy efficiency, demand response – at least 25% of peak capacity and smart grid flexibility
• Participate fully in utility efficiency and renewable energy programs rather than opting out
• Each data center project should require a legally binding Community Benefit Agreement that clearly defines community protections and benefits, negotiated among developers, local governments, neighborhood-based organizations and underserved communities

This approach reduces peak demand, lowers infrastructure costs and protects existing customers while allowing data centers to advance.

Major companies like Microsoft, Google and Meta have already publicly committed to operating on carbon-free energy. We need to hold them to that. Wisconsin risks losing our competitive advantage if we default to gas-heavy solutions instead of offering clean, flexible grids.

Water is a non-negotiable constraint

Energy is not the only concern. Water matters just as much.

A single hyperscale data center can use millions of gallons of water per day, either directly for cooling or indirectly through power generation. In communities with limited water systems, that can crowd out agricultural use and raise residents’ water bills.

Wisconsin should require closed-loop cooling systems, full accounting of direct and indirect water use, and ongoing public reporting to ensure local water supplies are protected.

A practical path forward

Wisconsin does not have to choose between economic growth and affordability. We can do both if we insist on clear guardrails.

That means requiring data centers to pay the full cost of service, powering growth with clean energy first, and protecting water resources and ratepayers from unnecessary risk.

Data centers are coming. The question is whether Wisconsin families and small businesses will be partners in that growth or be left paying higher bills for decades to come.

If we choose smart clean power over costly gas, Wisconsin can lead.

GET THE MORNING HEADLINES.

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