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Wisconsin’s unfolding energy crisis 

Members of the WEBB gather at Walnut Way with Lindsay Heights residents on Feb. 10 to publicly demand that the state's utility regulators not allow We Energies to charge residential customers for the explosive, unprecedented growth in electricity demand to power hyperscale data centers. (Photo courtesy Walnut Way Conservation Corps.)

Data centers, artificial intelligence and fossil fuels are dominating headlines. Across the  United States, more than $350 billion was invested in AI and data-center infrastructure, with  tens of billions of dollars proposed in Wisconsin. Investment and economic development are  often framed as unequivocal wins, but energy infrastructure is different. If built without  foresight, the consequences will reshape the future. 

Growth is certain; however the balance between positive and negative growth is yet to be  determined. 

I have worked in Wisconsin’s energy sector since 2019, beginning in residential and  commercial solar. Over the years, I’ve seen energy debates around renewable energy become  increasingly politicized, even as their original purpose remains unchanged: to produce reliable  electricity, reduce dependence on fragile infrastructure, and give communities more control  over their energy supply. Yet, the existing industry stakeholders have blocked deployment and  ownership for everyone but themselves. While homeowners, farmers, tribal nations and  small businesses face mounting restrictions on deploying their own power systems, the state  has moved quickly to approve massive new energy loads for data centers. These agreements  are also accompanied by preferential rate structures, infrastructure guarantees and the ability  to negotiate. 

That contradiction should concern all of us. 

Wisconsin residents have grown accustomed to electric rate increases justified by grid  maintenance, system upgrades and long-term reliability. According to federal energy data,  Wisconsin already ranks among the top 15 states for electricity costs, and utilities have  signaled additional increases in the years ahead. At the same time, power reliability has  deteriorated in both rural and urban areas. 

In parts of Milwaukee, aging poles lean precariously, and low-hanging lines form tangled  webs that look untouched for decades. In rural Wisconsin, the impacts are similar. Tribal  nations such as the Sokaogon Chippewa and the Menominee Nation have experienced  long-duration outages lasting days or even weeks, disrupting health care, food systems and  economic activity. These are not isolated incidents; they are symptoms of an overstretched  and unevenly maintained grid. 

Against this backdrop, Wisconsin is welcoming some of the most energy-intensive facilities  on the planet. A single large data center can consume as much electricity as a small city,  operating around the clock, every day of the year. The rise of AI only accelerates this demand.  Unlike the rest of the state, these facilities do not proceed without firm assurances of power  availability, reliability, transmission access,and cost certainty. 

Data centers operate under a different set of rules.  

Utilities and regulators are willing to negotiate specialized rate structures, accelerate  infrastructure investments, and prioritize reliability. Meanwhile, everyday ratepayers, who  collectively use far less power and have far less leverage, are asked to shoulder rising costs  and accept declining service quality.  

This is not a free market. Wisconsin’s energy industry has become an unregulated monopoly.  Large utilities control generation, transmission and distribution, and they largely determine  who is allowed to produce power and under what terms. While utilities have invested heavily  in renewable energy they own, they continue to restrict external ownership and  community-scale generation knowing that distributed energy can reduce peak demand,  improve resilience, and lower long-term system costs.  

If utilities can justify new power plants, substations and transmission lines for data centers,  they must also explain why a similar urgency does not apply to grid reliability, ownership  opportunities for distributed energy systems and lower rates for Wisconsin residents. Why is  Wisconsin able to deliver gigawatts of electricity to data centers, yet unable to address  persistent grid failures in communities that have been struggling for decades?  

This moment calls for accountability, not ideology. Wisconsin deserves transparency in how  data center energy deals are structured, who bears the costs of new infrastructure and how  reliability risks are distributed. Ratepayers deserve to know why the largest electricity users  receive the greatest assurances, while households, businesses and communities are told to  accept less while paying more. Economic growth should not come at the expense of affordability,  resilience or fairness. If Wisconsin is going to power the future of AI and digital  infrastructure, it must also protect the people and communities that power Wisconsin itself.  

This energy crisis is not inevitable. It is the result of choices. And those choices will  determine whether Wisconsin’s energy future delivers reliable power for all, or a system  defined by higher costs, more frequent outages and growing divides between communities. 

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