Attendees at a Feb. 12 protest called for a pause on data center construction in Wisconsin. (Henry Redman | Wisconsin Examiner)

A group of Democratic state lawmakers on Thursday announced a proposal to put a moratorium on data center construction in Wisconsin as communities across the state grapple with local resistance to the development of hyperscale AI data centers. 

Debates around data centers have become increasingly tense in recent months as residents of communities including Mount Pleasant, Mount Horeb, Beaver Dam, Port Washington and Janesville have rallied opposition to  the approval of data centers by local officials. 

While officials in these communities are often tempted by the promise of increased property tax revenue from the facilities, residents have raised objections to their local representatives ceding local land to multibillion-dollar tech companies, the massive amounts of energy and water needed to operate the large data centers and the related effects on local utility rates and the environment to produce all the power.

Several pieces of legislation to regulate data center construction have already been proposed in the Legislature. In January, Assembly Republicans passed a bill that would establish some regulations, but Democrats said it didn’t do enough to prevent electricity costs from being passed on to regular consumers and included a provision that would stymie renewable energy development in the state. 

With just days left before the Legislature ends its work for the session next week, a group of Democratic lawmakers rolled out a proposal that would pause data center construction until “all of the questions that you have, that you have been asking your local mayors, you have been asking your local legislators, you have been asking these data centers, that all of those are actually answered,” Sen. Chris Larson (D-Milwaukee) said at a press conference Thursday afternoon with local data center activists. 

The bill defines a data center as “a facility having a primary purpose of storing, managing, and processing digital data and that has at least 5,000 servers, occupies at least 10,000 square feet, or has an electricity demand of at least 100 megawatts.”

The bill wouldn’t allow the construction of any data centers in the state until the state establishes a data center planning authority; prohibits energy and water costs from being shifted to residential utility customers; creates a “land and community funding mechanism”; eliminates state and local financial subsidies for data centers; mandates public reporting of data center energy and water use; creates data center-specific pollution regulations; requires that 100% of the energy produced for data centers be renewable; requires that data center construction projects pay prevailing or collectively bargained wages; restores planning authority to the Public Service Commission; prohibits non-disclosure agreements between data centers and government entities and creates an enforcement and penalty structure for data centers that violate regulations. 

“The intent is not to permanently prohibit data centers, but to ensure that any future development is responsible, transparent, and does not impose additional financial burdens on Wisconsin households,” a co-sponsorship memo on the proposal states. “Wisconsinites should not be asked to shoulder higher utility costs while large new energy users operate without clear rules, accountability, or public oversight. This bill provides the Legislature with the time and authority necessary to establish a fair and comprehensive framework that protects ratepayers, workers, and local communities before large-scale data centers are allowed to move forward.”

On Thursday, a few dozen people gathered outside the state Capitol to protest against data center construction before meeting in a hearing room for a news conference and panel discussion. Rep. Francesca Hong (D-Madison), one of the several Democrats running in the primary for governor, said at the press conference that the data center proposals have galvanized anti-corporate views in communities of all political stripes. 

“This is about community power and returning community control to folks all across the state,” Hong said. “I am so incredibly grateful because I have not seen this type of bipartisan opposition to corporate control. I have not seen this type of bipartisan support for ensuring that we protect our natural resources. Our natural resources are not for sale. Our health is not for sale. Our shared future depends on all of us fighting right now to ensure that we are holding AI data centers accountable.”