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Gas prices rise again as some states consider tax holidays

A driver pumps gas at a Royal Farms in Columbia, Md., as rising fuel costs put pressure on household budgets nationwide. The national average price per gallon of regular gas is now $3.96, according to the U.S. Energy Information Administration. (Photos by Amanda Watford/Stateline)

A driver pumps gas at a Royal Farms in Columbia, Md., as rising fuel costs put pressure on household budgets nationwide. The national average price per gallon of regular gas is now $3.96, according to the U.S. Energy Information Administration. (Photo by Amanda Watford/Stateline)

Gas prices are climbing again across the United States — with little clarity on where prices are headed next — spurring proposals for state gas tax holidays in the hopes of offering drivers some relief.

The national average hit $3.96 per gallon Monday, up from $3.72 the week before, according to the U.S. Energy Information Administration. A month ago, the average price per gallon was $2.79.

Some analysts warn prices could continue climbing in the coming weeks, potentially pushing the national average above $4 per gallon for the first time since 2022.

Data from AAA, a national travel and motorist organization, shows a similar upward trend for both regular gas and diesel.

While the Energy Information Administration no longer publishes detailed data for every state, regional figures show increases across much of the country. The West Coast, Central Atlantic states and Rocky Mountain region are seeing some of the highest average prices, with California, Colorado and Washington among those experiencing the largest recent increases.

Rising gas prices are putting renewed pressure on household finances, especially for low- and middle-income Americans who have less flexibility to absorb higher transportation costs. The increases can ripple through daily life, influencing how much people drive, where they travel and how they spend money elsewhere.

Gasoline prices don’t live in isolation.

– Steven Durlauf, an economist at the University of Chicago’s Harris School of Public Policy

Still, economists say the most significant factor right now is not just the price itself, but the uncertainty surrounding it. With national policy decisions and geopolitical developments in the Middle East shifting rapidly, there is little consensus on how long prices will remain elevated or how high they could climb.

“Gasoline prices don’t live in isolation,” said Steven Durlauf, an economist at the University of Chicago’s Harris School of Public Policy. Durlauf also is the director of the university’s Stone Center for Research on Wealth Inequality and Mobility. “Reductions in the supply of petroleum, oil-based products affect the entire economy.”

States weigh gas tax holidays

With prices rising, local leaders and state lawmakers in several states — including California, Connecticut, Florida, Georgia, Maryland and Utah — have weighed gas tax holidays as a way to provide relief at the pump.

Georgia lawmakers have already enacted a temporary suspension, while officials in Florida and Maryland have expressed skepticism, citing budget constraints and questions about how much savings would actually reach consumers.

Gas prices have risen across all of these states, with some of the sharpest increases in the South.

Gas tax holidays, which temporarily suspend or reduce state fuel taxes, gained traction in 2022 when gas prices last topped $4 per gallon. Supporters say they can offer immediate, visible relief by lowering the per-gallon cost of fuel.

But researchers and some economists say the benefits are often limited and uneven. A new analysis from the Institute on Taxation and Economic Policy, a left-leaning tax policy research group, estimates that the recent rise in gas prices is on pace to cost American drivers an additional $9.4 billion per month.

The researchers found that gas tax holidays may provide only minimal relief to those who need it most. For households earning less than $53,000 a year, a federal gas tax holiday would save about $5 per month on average.

Some research suggests that much of the benefit from such policies may not reach consumers at all. When fuel supply is constrained, a significant share of the savings can be absorbed within the oil and gas supply chain rather than passed on at the pump.

State-level examples reflect similar patterns. In Georgia, analysts from the Institute on Taxation and Economic Policy found that the state’s newly enacted tax holiday is expected to cost the state about $196 million per month and disproportionately benefit wealthier households: The bottom 60% are expected to receive just 22% of the tax cuts — or roughly $13 per family, according to the ITEP analysis.

Utah lawmakers have spent a year planning for a 15% cut in the state’s gas tax from July through December. But some economists say any savings for consumers might be engulfed by higher prices.

“It’s still unclear the extent people will notice that tax cut,” Phil Dean, chief economist at the Kem C. Gardner Policy Institute at the University of Utah, told the Utah News Dispatch.

There are also fiscal trade-offs. Gas taxes are a key source of revenue for transportation infrastructure, and suspending them — even temporarily — can strain state budgets, particularly in places where revenues have fallen in recent years.

Some experts say more targeted approaches, such as direct income rebates or assistance aimed at lower-income households, may be more effective in offsetting rising fuel costs without reducing transportation funding.

“A tax holiday is, I think, something most economists would be uncomfortable with,” said Durlauf, the University of Chicago economist.

If the consumer demand is still there, gasoline prices might still rise, he said. “It’s not obvious to me that the prices will not just adjust to (gas tax holidays) as well.”

Global tensions

Much of the recent volatility stems from the Trump administration’s war in Iran and uncertainty surrounding the Strait of Hormuz — a critical global oil transit route through which a significant share of the world’s oil supply passes. Iran has effectively restricted access to some vessels in the region, raising fears of supply disruptions that can quickly ripple through global markets.

Even the threat of disruption can send oil prices higher, as traders react to the possibility of reduced supply.

Though the United States produces substantial amounts of oil domestically, it remains part of a global market, meaning international developments still directly affect prices at the pump.

“Americans can’t fence themselves off from the impacts of global changes to supply and demand,” said Patrick De Haan, a petroleum analyst at GasBuddy, a fuel savings and price-tracking company. “Actions have consequences, and consumers are very much feeling that.”

Crude oil remains the single biggest driver of gasoline prices, accounting for about half of the cost of a gallon of regular gas, according to the Energy Information Administration. Refining makes up about 20%, while distribution and marketing account for 11%, and taxes roughly 18%.

Brent crude oil — the international benchmark — has surged in recent weeks, briefly reaching $119 per barrel last week. It settled around $100 per barrel on Monday, and rose again on Tuesday to about $113 per barrel.

Federal forecasts expect prices to remain elevated in the near term before easing later this year.

Seasonal factors are also contributing to the increase. As warmer weather approaches, refineries transition to producing summer-blend gasoline, which is more expensive to manufacture but designed to reduce evaporation and meet environmental standards.

Warmer weather also usually means more drivers will be on the road.

“The oil industry is volatile. It’s a global market, and that’s why we don’t predict what’s going to happen next because it’s impossible to,” said Aixa Diaz, a spokesperson for AAA. “This all coincided at a time when gas would normally be going up anyway for us.”

At its core, gasoline pricing reflects basic supply and demand dynamics. When supply tightens — or is expected to — prices rise. When demand falls, prices tend to drop, sometimes sharply.

“Whenever there’s a perceived shift in either supply or demand, there’s going to be an equal reaction,” De Haan said. “This is just one of the larger reactions, because it’s a larger impact.”

The recent spike has also been fueled by rapidly shifting political signals. President Donald Trump said Monday that the United States is in talks with Iran to resolve the conflict, helping to briefly push oil prices lower after they surged amid Trump’s threats to target Iran’s energy infrastructure. Iran denied there were ongoing talks.

Such volatility, economists say, adds another layer of uncertainty that can weigh on both consumers and the broader economy.

Stateline reporter Amanda Watford can be reached at ahernandez@stateline.org.

This story was originally produced by Stateline, which is part of States Newsroom, a nonprofit news network which includes Wisconsin Examiner, and is supported by grants and a coalition of donors as a 501c(3) public charity.

Madison microloan program inspires Appleton organization

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Two illustrated people shake hands while holding documents, with a checkmark icon between them.
Borrowers who go through microloan programs in Appleton and Madison work with local banks to set up accounts. (Courtesy of unDraw.co)
Click here to read highlights from the story
  • St. Vincent de Paul-Madison started a microloan program in 2023 and has so far made nearly $100,000 in loans to 50 people.  
  • Word spread about the program, and leaders at St. Vincent de Paul-St. Thomas More Conference in Appleton decided to implement a similar initiative. 
  • People must meet several criteria to be eligible for a low-interest microloan. 
  • The local St. Vincent de Paul chapter financially supports the loan, and borrowers work with a partner bank to establish a bank account, get the funds and go through financial education. 
  • However, the effort is not without risk. The Madison organization has had people default on their microloans, though leaders declined to say how many.

Mary T. had a $2,500 balance on her credit card. It came with a 26.9% interest rate.

“I wanted to be responsible and pay off my loan … but it was so hard to get it paid off,” the Madison resident said. 

Then, she heard about St. Vincent de Paul-Madison’s microloan program. If she qualified, the organization would pay the credit card loan and Mary would then pay back St. Vincent de Paul on a loan with a 4.3% interest rate through a local bank.

“It’s July 2027 that I’ll have it paid off,” Mary said. “It was not hard to go through the paperwork, and they were so nice to me throughout the whole process.”

Mary is one of about 50 people helped by St. Vincent de Paul’s microloan program since it started in late 2023. The Madison organization launched its initiative to help people living in poverty manage a one-time bill or pay off high-interest payday loans.

“People get trapped in these loans,” said Julie Bennett, CEO and executive director of St. Vincent de Paul-Madison. “They take out a loan to help with a car repair, for example, and the interest just grows. They then need another loan or need to extend the loan because they can’t pay the interest, and it just spirals.”

Since St. Vincent de Paul-Madison started its microloan program, the organization has made nearly $100,000 in loans, and word has spread. The St. Vincent de Paul-St. Thomas More Conference in Appleton launched its microloan program in February. 

“The first microloan we made was for someone who had an auto title loan with a 305% effective interest rate. He had a $1,500 loan, and we were able to get him down to a 5% interest rate,” Bennett said.

Finding an alternative to payday loans

The Madison organization’s leaders learned about microloan programs offered by St. Vincent de Paul conferences in Columbus, Ohio, and Dallas, Texas, after attending national events. Members thought it was a great program they could bring back to Wisconsin, which has some of the highest average payday loan interest rates in the nation. A report from The Pew Charitable Trusts found state residents pay an average of $395 in fees and interest when repaying a $500 loan after four months, for an interest rate of 338%.

As the Madison organization’s leaders worked on the 2019-2022 strategic plan, Bennett said creating a microloan program was included on the to-do list. They looked at other microloan programs and struggled at first to understand the complexity of banking. St. Vincent de Paul-Madison created a task force that included financial representatives who helped them understand how the loan process would work. Representatives from local organizations that work with those living in poverty also joined the task force. 

While St. Vincent de Paul-Madison provides the money for the loans, its leaders must partner with financial institutions to process the loans and help create a positive lending experience for the borrower’s credit report. The Bank of Sun Prairie signed on as the organization’s first banking partner in 2023, with Lake Ridge Bank joining in 2025. 

“We needed a financial partner to take care of all the loan documentation and to make sure the loan was on (the borrower’s) record,” Bennett said. “If they pay off the loan successfully, it looks good on their credit record and gives them something to build on.”

Microloan recipients must meet several requirements to qualify, including being a Dane County resident, having a monthly household income at or below 300% of the federal poverty level, being willing to have a bank account and having a monthly debt-to-income ratio under 47%.

As part of the program, loans range from $400 to $2,500. Borrowers receive low-interest rates between 4% and 8% and set up flexible repayment plans over two years through local banks. 

“We see the microloans as an alternative to payday loans for people who need money but have no other source to go to,” Bennett said. “We also see the microloans as a way to pay off those payday loans, which cause immediate and long-term harm to borrowers since the interest rates keep going up.”

Borrowers also receive financial education and support to help them avoid similar situations in the future. Bennett said St. Vincent de Paul-Madison wanted to provide that education with a sensitive approach. The University of Wisconsin-Extension’s Financial Education program developed training for the microlending team so they could have sensitive, discreet conversations.

“No one likes talking to strangers about their money, and it’s even harder when their financial condition is precarious,” she said.

The microloan program carries some risk for St. Vincent de Paul-Madison. If borrowers default on their loans, the organization is on the hook for paying them off. Unfortunately, that has happened, though Bennett declined to share how many people have defaulted. 

To Mary, being able to get her interest rate to a predictable and manageable number was vital.

“I just know how much I need to pay without the total … going up all the time, with the interest … growing,” she said. “I felt I was never making any progress with the payments. Now, I can see when it’s all going to be paid off, and I know I’m going to get it done.”

An example to others

The Madison team paid their experience forward, and leaders from an Appleton organization took notice.

Karen Rickert, a member of St. Vincent de Paul-St. Thomas More Conference, heard Bennett speak about Madison’s microloan program at an event. In her years as a volunteer, Rickert saw many people caught living paycheck to paycheck. A woman who was hit with a car repair bill and turned to a payday lender stuck with Rickert.

“The repair costs were more than what we could help with. She couldn’t go to work because she didn’t have a working car. She couldn’t take her kids to school because she didn’t have a car. She eventually had to take out one of those terrible payday loans,” Rickert said. “I felt terrible about it, but it sprung me into action.” 

Members from the Appleton organization met with Bennett and learned as much as possible about the Madison group’s microloan program. They put their bylaws and plans together. 

The next step? Raising $20,000 to serve as security for the loans. Thanks to a grant and donations, they nearly doubled their goal.

Nicolet Bank signed on as the financial institution. Rickert said the organization has several volunteers who used to work in finance and banking. They “walk hand-in-hand with our borrowers through the process to help address any issues before they become a problem,” she said. 

For organizations looking to start their own microloan programs, Bennett and Rickert recommended talking to groups with their own initiatives and being prepared to ask a lot of questions. The St. Thomas More Conference learned a lot by talking with the Madison organization and others as they put their microloan program together, Rickert said.

“It was a lot of work and took us a while to get it going, but it was worth it,” she said.

With everything in place, the Appleton organization made its first microloan in February.

“It’s amazing to see this all come together and now we’re able to help people get loans at a reasonable rate and help steer them away from payday loans,” Rickert said. “We’re helping them get a step ahead.”

Learn more: Visit the St. Vincent de Paul-St. Thomas More Conference website at www.svdpappleton.org/other-ways-we-help to request assistance.

Madison microloan program inspires Appleton organization 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.

Work on Enbridge’s Line 5 reroute underway as legal challenges aim to halt construction

The Line 5 reroute has generated years of debate, protests, tens of thousands of comments and challenges to state permits that prompted a weekslong contested case hearing. The fight over Line 5 is one front in a larger battle over pipeline projects that often pit energy security and jobs against potential harms to the environment and tribal treaty rights. 

The post Work on Enbridge’s Line 5 reroute underway as legal challenges aim to halt construction appeared first on WPR.

State savings weaken as budget pressures increase, analysis warns

The New Jersey Capitol is pictured along the banks of the Delaware River in Trenton. A new analysis found New Jersey has the weakest rainy day fund of any state in the nation. (Photo by Dana DiFilippo/New Jersey Monitor)

The New Jersey Capitol is pictured along the banks of the Delaware River in Trenton. A new analysis found New Jersey has the weakest rainy day fund of any state in the nation. (Photo by Dana DiFilippo/New Jersey Monitor)

State rainy day funds — money reserved to cover unexpected expenses and patch short-term budget holes — are declining nationally as states face increased costs, lower tax revenue and federal budget cuts, a new analysis found. 

The decline follows a period of strong reserves bolstered by federal pandemic aid and higher-than-expected tax collections, the report said.

Researchers at The Pew Charitable Trusts found that the number of days that state reserves could cover state operations fell in fiscal year 2025 — the first decline since the Great Recession. 

State reserve funds will play a critical role in stabilizing state finances as they confront the most widespread budgetary pressures since at least 2020, the researchers said. Like household savings accounts, state reserves help fund major one-time investments or provide a cushion in times of disrupted tax revenues, including economic downturns. Lower reserves means states could be quicker to cut state services or raise taxes in times of tight budgets.

Examining data from a survey conducted by the National Association of State Budget Officers, Pew researchers concluded that the median state in 2025 could fund its operations on reserve funds for 47.8 days — down from a record 54.5 days in fiscal 2024. 

States last fiscal year held a collective $174 billion in savings, though reserves varied widely. Wyoming, for example, held enough cash on hand to operate for 320 days. But New Jersey’s reserve didn’t hold enough to cover a single day of state operations. The other states with the smallest share of rainy day reserves were Washington, Illinois, Delaware and Rhode Island. 

The Pew analysis found that 26 states in 2025 had less capacity in their rainy day funds — meaning they would cover fewer days of state operations. In 14 of those states, officials drew on reserves, while 10 grew their balances but did so more slowly than they increased state spending. Two states maintained flat reserve levels as expenses grew.

While helpful in the short term, reserves won’t provide a long-term solution for states as many are confronting structural imbalances, meaning revenue streams are not keeping up with government spending. 

“Although reserves exist to provide relief during times of fiscal stress, they are not a sustainable solution for persistent budget shortfalls,” the analysis said. 

Budget pressures are expected to increase as states grapple with major federal policy changes that cut state funding and increase state administrative costs for federal safety net programs including Medicaid and food assistance. 

In its most recent survey of state budgets, the National Association of State Budget Officers found that general fund spending was projected to be “nearly flat” in fiscal year 2026 budgets. More states last year began enacting spending cuts and hiring freezes to balance budgets, the survey found, and slow revenue growth was projected for a fourth consecutive year. 

The survey showed 23 states expected spending to stay flat or decline in 2026, while 14 expected spending to grow by less than 5%. Seven states projected growth between 5% and 10%, while five expected spending to grow by more than 10%. 

Stateline reporter Kevin Hardy can be reached at khardy@stateline.org.

This story was originally produced by Stateline, which is part of States Newsroom, a nonprofit news network which includes Wisconsin Examiner, and is supported by grants and a coalition of donors as a 501c(3) public charity.

Local data center critics praise Microsoft’s pledge to stop using NDAs, but remain skeptical

An aerial view of a large industrial complex next to a pond and surrounding construction areas at sunset, with orange light along the horizon under a cloudy sky.
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Microsoft announced last week it would stop signing nondisclosure agreements that keep its data center proposals secret, a move that received praise from open government advocates.

Less attention was paid to the other party to those NDAs: local governments.

“Hopefully, the industry follows,” said Wisconsin state Rep. Clint Moses, R-Menomonie, where the city signed an NDA, then put a proposed data center on hold. Microsoft “just realized that it’s not a successful formula when you come into a community under darkness.”

Moses said a bill he introduced to ban data center NDAs, which stalled in the Legislature, is still needed to prevent local governments from signing the agreements. If local officials sign them, “hopefully voters will remember it and hold them accountable,” he said.

Microsoft did not sign NDAs in the Racine County communities of Mount Pleasant, where a multibillion-dollar data center complex is under construction, or in Caledonia, where it withdrew a data center proposal amid community opposition. But its announcement comes at a time of public backlash against data centers proposed in Wisconsin.

The company said its new position on NDAs is an effort toward transparency “as we continue to build trust with the communities around the world in which we operate” and that it would work with local governments to terminate current NDAs. Microsoft has one in Kenosha, where a data center is proposed.

Microsoft did not respond to a request for further comment.

Its move won qualified praise from data center NDA critics, such as Midwest Environmental Advocates. “Companies typically don’t make announcements about building community trust unless those communities are already pushing back pretty hard,” the group said in a statement.

Sheboygan Falls Mayor Randy Meyer, board president of the League of Wisconsin Municipalities, said municipalities feel pressure to sign NDAs because they need new development to increase tax revenue. It can be difficult to know when in the planning process a development proposal should be disclosed to the public, he added.

But “if the companies that are building data centers say there’s nothing wrong with them, they don’t hurt the environment, all that stuff, well, then there’s no real reason to be secretive about it,” Meyer said.

Bill Lueders, president of the Wisconsin Freedom of Information Council, also praised Microsoft’s move, which happened during Sunshine Week, which promotes public access to government meetings and records. 

But Lueders encouraged local government officials to be more transparent.

“There’s nothing the public hates more than the idea that their public officials are doing things behind their back,” he said. “That’s like the most offensive thing that you could do as a public official is hide information that affects the people you represent.”

Wisconsin Watch has reported that at least five Wisconsin communities signed data center NDAs. In one of them, Beaver Dam — where an NDA was signed more than a year before the proposal was announced — a $1 billion Meta data center is under construction.

Meta declined to comment on Microsoft’s announcement.

Vantage Data Centers, which is building a $15 billion data center in Port Washington with Oracle and OpenAI, did not reply to a request for comment.

The push to build data centers nationwide has meant more than $1 billion in business for Wisconsin suppliers, even before any of the hyperscale data centers in Wisconsin begin operation.

The data centers proposed or under construction in Wisconsin typically cost billions of dollars and cover hundreds of acres. 

Some communities that have not signed NDAs have taken other steps to keep data center proposals quiet.

The Madison suburb of DeForest dropped a proposed $12 billion data center in January, the day after Wisconsin Watch reported that village staff worked for at least seven months with Virginia-based QTS Data Centers before the proposal was publicly announced in October. 

Wisconsin Watch also found that in Port Washington, when citizens requested emails about the data center, the city turned over emails but withheld documents that were attached to the emails — something a judge found did not follow the state open records law.

Blaine Halverson, a leading opponent of the proposed data center in Menomonie, said Microsoft’s announcement is a step, but he remains skeptical.

“I think that committing to not doing NDAs does not mean they’re not committed to still being secretive,” he said. 

“What the pledge needs to be (is) that we’re going to not just not use NDAs. We’re going to be up front. We’re going to encourage and allow free communication from the beginning with communities. And we’re going to insist on being available to answer the public’s questions from the front end. That’s what needs to happen.”

Wisconsin Watch is a nonprofit, nonpartisan newsroom. Subscribe to our newsletters for original stories and our Friday news roundup.

Local data center critics praise Microsoft’s pledge to stop using NDAs, but remain skeptical 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.

Here’s what the data center boom means for Wisconsin’s workforce

Two people stand in a workshop beside open electrical cabinets and wiring, with one person holding a tape measure, and tools and a ladder are nearby.
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Click here to read highlights from the story
  • Jobs for data centers happen in three phases: development, construction and operations. 
  • The largest numbers of workers are on site when a data center is being built, experts said. 
  • The number of long-term jobs a data center brings depends on the size of the facility. 
  • It’s difficult to measure the ripple effects data centers have on the economy; however, experts say local businesses can benefit from producing components and products for data centers. 
  • Data center technicians will be in high demand as more facilities come online.

As data center developers stake out land in Wisconsin communities, much debate has surrounded whether the computer-packed warehouses will deliver economic benefits locally. 

Waves of opposition and concerns about land, water and electricity use routinely follow data center proposals, while supporters echo that the centers will create jobs and help the economy. 

But what jobs? How many of them? And will they last?

To answer those questions, Wisconsin Watch talked to three professors:

  • Xiaofan Liang, who specializes in urban and regional planning at the University of Michigan.
  • Scott Adams, a University of Wisconsin-Milwaukee labor economist. 
  • Dijo Alexander, who specializes in information technology, digital transformation and artificial intelligence at the University of Wisconsin-Milwaukee. 

Here are some takeaways.

What kinds of jobs do data centers bring?

Data center jobs fall into three major categories that represent phases in their creation: 

  • Development
  • Construction
  • Operations

A data center first needs people to plan for its existence. Developers, engineers, designers and planners lay that groundwork. 

“The data center industry as an ecosystem is pretty big … When they first introduce a data center to a place, they have to figure out the design standard, how to construct all kinds of facilities, how it connects to city systems,” Liang said.

Then, developers must hire heaps of hands-on laborers to construct the gigantic warehouses from the ground up — the largest portion of workers needed in creating and operating a data center. Among other professions, this includes electricians, plumbers and pipefitters, carpenters, structural steel and iron workers, concrete workers and earth drillers.

An aerial view shows a large construction site with cranes, heavy equipment and materials surrounded by snow-covered fields and intersecting roads.
Laborers and construction workers are needed in high numbers to build data centers like this one in Beaver Dam, Wis., experts said. (Joe Timmerman / Wisconsin Watch)

The job boom from early phases fizzles out once the building is complete, Liang said. 

“(During) construction time, you usually have a lot more jobs — maybe 10 times in magnitude more so than operations,” Liang said. 

Operations jobs, fewer in quantity, are largely “unglamorous,” Adams said. 

Some of these roles have relatively low barriers to entry, such as maintenance workers and security guards. Meanwhile, electricians and HVAC workers are needed, considering that power and cooling are data centers’ “two most important inputs,” Adams said. 

Adams echoed a popular analogy likening data centers to warehouses full of rotting bananas that need constant cooling and replacing.

“You need banana technicians, more or less, that take the rotted bananas out and replace them with new bananas,” Adams said. “Now, granted, they’re much more expensive bananas in there, and they’re doing a whole lot, and it requires a little more expertise. But again that expertise, by and large, can be developed pretty quickly.”

Those workers will be data center technicians — people who install servers, replace hardware and cables, monitor systems and notice when things break down.

How many jobs do data centers bring? 

The number of jobs created depends on a data center’s size, Liang said.  

That can initially mean thousands of jobs at gargantuan developments like in Mount Pleasant. Microsoft says it has employed 3,000 people to construct the location, compared to 500 full-time workers once the plant is operating. But these numbers are expected to climb as the company constructs a cluster of additional centers at the site. 

Not all of these workers will be local. Given the temporary high demand, the projects will likely need out-of-town construction laborers who travel to the area and don’t stay long term.

Smaller projects will employ far fewer people. For a typical data center, Microsoft estimates it hires about 50 full-time employees. What those numbers mean for the local area depends on the community’s size. 

“In a bigger city, like Atlanta, it’s like a drop in the ocean, right? It doesn’t really affect much,” Liang said. “In a rural area, in a smaller town, hundreds of jobs … are a big deal.”

What about the trickle-down economic benefits? 

A sizable new employer entering communities could ripple across other nearby industries, though Liang notes this is hard to measure. 

“(A data center) just has such a big infrastructure need that trickles down in many different ways,” Liang said. “Now we need expanded utility infrastructure, grid, fiber, water, all these things. Construction of these infrastructure, even though it’s not directly related to (a) data center, could increase local employment in those areas.”

Inside a data center are “cabinets after cabinets of steel frames holding computers” that need to be built, Alexander said. This can boost local manufacturing, especially the metal fabrication industry. 

Wisconsin manufacturers have already begun cashing in on the construction boom nationwide. As Wisconsin Watch previously reported, just three Wisconsin companies alone have amassed more than $1 billion in equipment sales — such as motors, generators and cooling systems —  to data centers.

A person in a red plaid shirt stands in a warehouse aisle, extending an arm and hand toward plastic wrap around large boxed equipment, with stacked pallets behind the person.
“The data center market is booming,” says Chief Operating Officer Erik Thompson of Modular Power & Data, who is shown in Cudahy, Wis., Feb. 25, 2026. He is standing next to rows of switchboards, which will be used to help power data centers. On the day of Wisconsin Watch’s visit, 42 of the switchboards were set to be sent out. (Trisha Young / Wisconsin Watch)

Massive developments like Microsoft’s in Mount Pleasant can potentially lead to a “tech corridor,” a cluster of warehouses and manufacturers near the data center they serve, Alexander said. 

“If we take the initiative and if we bring a few big enough component manufacturers, we can create locally created components for these data centers to consume,” Alexander said. “It’s like if you have a big restaurant or food manufacturer here, you will have agriculture around there, because it is easy for you to bring your produce for their consumption. Just like that. ”

The trend could also activate industries like nuclear power, Adams said. Building data centers  in conjunction with nuclear reactors to generate their power would fuel even more construction and energy jobs, he added. In Kewaunee County, an energy company wants to rebuild Kewaunee Power Station, a defunct nuclear power plant, anticipating energy demand from AI and data centers.

In more rural communities or near smaller data centers, the trickle-down effects could prove more modest — perhaps a few new restaurants and housing units, Adams said. 

Alexander also noted the effects could also be less concentrated, with growth spilling into neighboring cities as employees work at the center but live elsewhere.

But will enough permanent jobs be created to sustain the growth sparked during the early labor-intensive development phase? That’s unclear, Adams said. 

“We don’t have a firm enough grasp about the indirect effects in the longer term,” Adams said. “Short run, that’ll be great. Longer run, can we sustain the new development that might happen around these? I don’t know the answer to that. I think if the power generation side of it comes in connection with them, there’s more of a chance that that will work.”

Who are data center technicians?

Data center technicians are perhaps the most novel job introduced by the data center boom. The roles are more specialized than others needed inside the warehouses.

Job postings for data center technicians at Microsoft’s Milwaukee location say the workers will be “preparing, installing, performing diagnostics, troubleshooting, replacing, and/or decommissioning equipment under the guidance of more experienced data center colleagues.” 

The posting states the job requires a high school diploma, knowledge of computer hardware and some experience with IT equipment. Pay for lower-level technicians ranges from $23 to $36 per hour, with more experienced workers making up to about $48 per hour.

Adams said likely candidates will include engineers and computer coders and people now entering college with their sights on data center work. Microsoft and Gateway Technical College in Kenosha launched a “Data Center Academy,” preparing students to work in data center operations. Adams believes partnerships like this will become more common.

Are these good jobs?

You can use the interactive table below to explore many of the jobs data centers are expected to create, including wages, employment totals and required education.

table visualization

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Here’s what the data center boom means for Wisconsin’s workforce 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.

Gas prices are surging. Farm groups say American ethanol could help ease the pain.

Agriculture leaders and producers are urging Congress to allow year-round sales of fuel made with up to 15 percent ethanol, which they say could boost domestic demand for corn — and offer a cheaper gas option for U.S. drivers this summer.

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More than NDAs. Wisconsin communities face scrutiny over data center secrecy.

An aerial view shows a large construction site with cranes, heavy equipment and materials surrounded by snow-covered fields and intersecting roads.
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  • At least five Wisconsin communities have signed nondisclosure agreements with data center developers, including the town of Beloit.
  • Even in communities without an NDA, there has been pushback against transparency. For example, Port Washington was sued because it released emails referencing a project, but not the attached files.
  • It’s unclear if the state Senate will take up a bill that would ban data center NDAs, but the Assembly has already adjourned without passing the bill.

At a Jan. 28 public forum on Wisconsin data centers, Port Washington Mayor Ted Neitzke boasted that his city did not sign a nondisclosure agreement that would have concealed plans for a $15 billion facility that is now under construction.

“If you’ve got the courage and you push back and say, ‘Listen, we’re just not going to do it,’ (the data center developers) will find a way to operate without having to sign an NDA,” Neitzke said. “So, we did not and we will not.”

On the same day Neitzke was touting his community’s openness, Port Washington was in court over its refusal to provide communications about its data center. The city had turned over emails, but not documents attached to the emails.

It’s one example, beyond NDAs, of local governments hiding details of proposed large-scale AI data centers, which are projected to span hundreds of acres, cost billions of dollars and transform communities.

Wisconsin Watch reported in January that NDAs were signed in at least four Wisconsin communities where artificial intelligence data centers are proposed or being built — Beaver Dam, Kenosha, Janesville and Menomonie. Since then, Wisconsin Watch has learned about a fifth project with an NDA, this one in the town of Beloit — showing that discussions there occurred more than a year before any public announcement was made.

Port Washington stymies public records requests 

Construction began in December on Lighthouse, the 672-acre Vantage-OpenAI-Oracle data center campus in Port Washington, north of Milwaukee.

Four months earlier, philanthropist Lynde Uihlein, a town of Port Washington resident, environmentalist and major Democratic donor, made a public records request of the city. She asked for any communications between the city and the data center developer dating back to Jan. 1, 2025.

The Wisconsin public records law declares that “all persons are entitled to the greatest possible information regarding the affairs of government” and that governmental bodies must respond to requests “as soon as practicable and without delay.”

After nearly three months, the city did not reply to Uihlein’s request, so she sued.

The city responded by turning over emails, but not the documents attached to those emails, such as a draft development agreement. The city’s attorney explained that Uihlein didn’t specifically ask for the attachments.

“When cities want to court large, community-changing development, they also should be prepared to act with maximum transparency,” said Madison lawyer Christa Westerberg, one of the lawyers representing Uihlein.

“The city of Port Washington has been too slow to respond to requests about the data center and even when it has, there are gaps, like providing emails without attachments. This was foreseeable and avoidable.”

Wisconsin Watch is one of Westerberg’s clients, but is not a party to this case. Westerberg did not participate in the writing or editing of this report.

City Attorney Matthew Nugent told Wisconsin Watch: “The assertion that the city refused to produce email attachments is inaccurate. The city reasonably interpreted the original request to seek the email communications themselves, that is, the body of the email message, not the separate documents attached to those communications.”

At a court hearing Jan. 28, Ozaukee County Circuit Court Judge Adam Gerol rejected the idea that documents attached to emails aren’t part of the emails themselves. “There has not been a complete response to the open records request,” he said.

In February, the city turned over emails along with attachments to Uihlein, and Gerol ruled that city officials must submit to depositions to answer questions from Uihlein’s lawyers.

Gerol will be asked to determine whether the city has fully complied with the public records law, whether its delay in replying violated the law and whether it should have to pay Uihlein’s legal fees.

Another denial

The city used the same rationale to partially deny another public records request.

Port Washington resident Michael Beaster, an opponent of the data center, asked the city Nov. 20 for emails and other communications between city officials and the data center developer. 

The city replied six weeks later, sending some emails but no attachments to the emails. An attorney for the city told Beaster he would need to submit another request if he wanted attachments because Beaster did not specifically request those.

“It feels like they’re being overly cautious in trying to protect the city,” Beaster said, “which certainly isn’t serving the public.”

Beaster is running unopposed April 7 for an open seat on the Port Washington city council. He helped lead a failed effort to recall Neitzke over the data center.

Neitzke said he could not comment on why the city has not turned over email attachments, other than to say he is not part of the process of releasing records.

NDA for possible Beloit data center

News surfaced this month of a possible data center an hour southeast of Madison in the town of Beloit. The town, saying it was responding to information “being disseminated” about a possible data center, announced it had begun “very preliminary discussions” and signed a predevelopment agreement with Delaware-based Cambrin LLC.

Wisconsin Watch has since learned that the town signed an NDA with Cambrin in February 2025 — more than a year before making its announcement.

The NDA and other documents provided to Wisconsin Watch in response to a public records request do not directly refer to a data center. 

The documents indicate that “Project Corn Maze” would initially include 700,000 square feet of buildings, employ 50 people and require tax incremental financing from the town.

The records also show that the town has exchanged emails about the project since April 2025. They indicate that Cambrin LLC was formed to make the development proposal and don’t identify what company would operate the data center.

Signs of openness 

Access to records also was at issue for the first phase of a data center complex south of Milwaukee in Mount Pleasant. The first center in that Microsoft complex is expected to open later this year.

This month the Wisconsin Freedom of Information Council announced it is giving its annual citizen openness advocate award to Midwest Environmental Advocates. The public interest law firm successfully sued the city of Racine for records disclosing how much water it is projecting to provide for the Mount Pleasant data center.

The council also gave an award to Wisconsin Watch for its story on data center NDAs.

Amid reports of a possible data center in Grant County and as Meta seeks to add a data center to one it is building in Beaver Dam, there is movement toward more openness on several fronts.

Beaver Dam residents weigh in as second data center proposal looms.​ (Video by Trisha Young / Wisconsin Watch)

The state Public Service Commission, which approves requests for new utility plants and utility rates, initially accepted a confidentiality request from Alliant Energy in its application to serve the Beaver Dam data center despite numerous redactions — including how much energy the center would use.

On Feb. 26, however, state administrative law judge Michael Newmark, who is overseeing the PSC hearings on the request, told Alliant to resubmit its request with fewer redactions. Alliant did the next day with less information blacked out. 

“It seemed like the redactions were not going to allow us to do sort of the basic functions of open government,” Newmark said at the hearing. Fewer redactions would enable the commission to rule on the application in a way that is “defensible in court and in the court of public opinion,” he said.

Last week the University of Wisconsin-Milwaukee Center for Water Policy released a model for state legislation to “promote transparency and environmental protections” for data centers.

The model, which recommends temporary statewide moratoriums on data centers, makes several recommendations to increase transparency, including a ban on local governments signing NDAs and requiring public disclosures on water and electricity use before any approvals are given.

The “continued absence of comprehensive and timely disclosure requirements,” the report said, “undermines public understanding and limits informed decision-making around siting, permitting and environmental impacts.”

And on Friday, a state Senate committee on a 4-1 vote approved Senate Bill 969, which would prohibit local governments from signing NDAs with data center developers. No further action has yet been scheduled.

The committee also advanced, 3-2, Assembly Bill 840, which would require the Public Service Commission to protect ratepayers from the costs of providing electricity to data centers. The bill contains a controversial requirement that renewable energy used for a data center be located on the site. The Assembly passed the bill 53-44 in January. 

Legislation banning NDAs is pending in several states, including two that took action last week.

A Minnesota House of Representatives committee approved a bill banning data center NDAs and sent it to the House floor.

In Florida, a provision banning NDAs that industry groups lobbied against was removed from a data center bill. 

A report released last week by the Alliance of Great Lakes urged governmental bodies to limit the use of NDAs so that the public can know how much water and energy a data center will use.

“When critical information is withheld, decision-making shifts risk from private developers to communities and public utilities,” the report said.

Wisconsin Watch is a nonprofit, nonpartisan newsroom. Subscribe to our newsletters for original stories and our Friday news roundup.

More than NDAs. Wisconsin communities face scrutiny over data center secrecy. 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.

Evers vetoes proposed child care tax credit expansion for employers as potential gateway to fraud

By: Erik Gunn

Gov. Tony Evers meets with children at a Fitchburg child care center in September 2023. Evers vetoed a bill on Friday, March 13, that would have expanded a business tax credit for child care expenses, saying the measure had a vague "catch-all" provision that could open the door to fraud. (Photo by Erik Gunn/Wisconsin Examiner)

Gov. Tony Evers has vetoed legislation that would have broadened a tax credit for businesses that invested in child care services.

A “catch-all” provision in the bill would have awarded the tax credit for “any other cost or expense incurred due to a benefit provided by an employer to facilitate the provision or utilization by employees of child care services.”

The provision “invites the possibility of a business claiming various expenses only tangentially related to child care services,” Evers wrote in his veto message, signed Friday. He added that it “significantly increases the risk of fraud” and didn’t including funding to cover the increased costs for the Wisconsin Economic Development Corp. to ensure against employers scamming the system.

Republican lawmakers introduced the legislation, SB 291 / AB 283, in 2025 as the Evers administration and child care advocates were seeking up to $480 million in the Wisconsin 2025-27 state budget to support child care workers’ wages and avert increased child care tuition for families. The final budget included about $110 million for direct payments that expire this summer. 

The GOP measure proposed expanding the state’s Business Development Tax Credit, which since 2023 has allowed employers to get a tax credit for 15% of the capital expenditures they make for child care facilities for their employees. The original tax credit had no takers.

Child care providers were critical of the expansion proposal and argued that that it wasn’t adequate to address increased costs and reduced capacity for child care in Wisconsin.

The measure passed the Senate in November 2025 on a 19-14 vote with all but one Democrat voting against it. The Assembly concurred with the Senate bill on a 63-31 vote in February, with nine Democrats joining the GOP in favor of the bill.

In his veto message, Evers noted that he signed a bill in December, permitting employers to take the tax credit if they invest in a third party that establishes a child care program or in a revolving loan fund for that purpose. That measure, 2025 Act 78, was an example of “making smart and strategic modifications” Evers wrote.

“Unfortunately , this bill fails to do the same,” he wrote. “I am vetoing this bill in its entirety because I object to the Legislature making drastic and vague expansions to tax incentive programs without providing the necessary funding for proper implementation and the clarity necessary to prevent fraud, waste, and abuse.”

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Wisconsin Forests FIRST initiative seeks to create long-term roadmap for forest products industry

The Wisconsin Forests FIRST initiative is working to develop a strategic plan and long-term roadmap to ensure Wisconsin’s forests remain healthy while also supporting a sustainable and competitive forest products industry.

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Utility profits rise as household bills soar, new analysis finds

A group of Maine residents protest a proposed electricity price increase ahead of an October public hearing in Freeport. A new report says investor-owned utilities are collecting more profits as household utility bills soar. (Photo by AnnMarie Hilton/Maine Morning Star)

A group of Maine residents protest a proposed electricity price increase ahead of an October public hearing in Freeport. A new report says investor-owned utilities are collecting more profits as household utility bills soar. (Photo by AnnMarie Hilton/Maine Morning Star)

Investor-owned utility profits have soared as consumer utility bills have skyrocketed in recent years, according to a new analysis of dozens of electricity providers.

The Energy and Policy Institute, a watchdog group tracking fossil fuel and utility industries, analyzed financial disclosures from 110 investor-owned electric utilities between 2021 and 2024, as well as available 2025 filings. The report, published on Thursday, does not include nonprofit electric providers such as municipal utilities or rural electric cooperatives. 

Last year, state-regulated, investor-owned electric utilities kept about 15 cents of every dollar they collected as profit, the report concluded. (For a customer paying a $200 monthly electric bill, that means about $30 went to corporate profits.) The 2025 figure is up from around 13 cents on average between 2021 and 2024, it said.

The utilities examined in the analysis reported almost $186 billion in profits between 2021 and 2024, the study concluded.

“These patterns suggest that a substantial share of what customers pay for electricity is consistently flowing to investors as profit,” the report said, “a finding that is especially significant as consumers face persistently high energy costs and financial stress.” 

The analysis found regional variation in utility profits. 

Utilities in the Southeast operating outside of organized wholesale electricity markets, where electricity is sold and bought in bulk, earned higher profits. Across Alabama, Florida, Georgia and other Southeastern states, utilities retained nearly 16% of their revenue as profit between 2021 and 2024, the report said.

By contrast, utilities in the PJM Interconnection regional market serving the mid-Atlantic averaged about 11.8%, while utilities in New York and New England reported similar or lower levels. 

The report found the utilities with the highest average margin between 2021 and 2024 were MidAmerican Energy (27.22%), Florida Power & Light (23.51%), Nantucket Electric (23.24%), Empire District Electric (22.45%) and Florida Public Utilities (20.35%). 

The analysis comes as consumer utility bills continue to outpace the rate of inflation and state lawmakers of both parties increasingly scrutinize utility prices.

A February report from the National Energy Assistance Directors Association found about 1 in 6 U.S. households were behind on utility bills. That organization, which represents state employees administering federal energy assistance programs, said American households were collectively behind $25 billion on electric and gas bills at the end of 2025 — up from about $23 billion the year before.

The association said home heating costs were projected to rise by 11% this winter — more than four times the rate of inflation — reaching their highest level in at least four years amid higher electricity and natural gas prices and colder-than-average weather.

Most consumers get their electricity from utilities that must seek state approval for rate changes, with appointed or elected state boards approving price structures.

While state lawmakers, governors and regulators are increasingly questioning utility prices, the Energy and Policy Institute says states can take more action to control profits.

Thursday’s report calls for states to set lower profit rates for investor-owned utilities, scrutinize the financing of new capital investments, link utility earnings to customer results and strengthen the role of consumer advocates in rate decisions.

Stateline reporter Kevin Hardy can be reached at khardy@stateline.org.

This story was originally produced by Stateline, which is part of States Newsroom, a nonprofit news network which includes Wisconsin Examiner, and is supported by grants and a coalition of donors as a 501c(3) public charity.

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