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Wisconsin state government is not spending $2 billion on data centers.

The campaign website of Democratic gubernatorial candidate Francesca Hong stated that Wisconsin is “spending over $2 billion in public money” on data centers “this year.”  

The statement linked to a Wisconsin Watch news article, which is based on a Legislative Fiscal Bureau memo.

The article made clear that the $2 billion is forgone revenue, not an expenditure. The LFB estimated the state will forgo $2 billion in revenue over a period of years because data centers are exempt from paying state sales tax.

It’s unclear whether the three artificial intelligence data centers under construction in Wisconsin would have been built without the tax incentive, which most states offer.

Some states are rolling back the exemptions or imposing requirements for receiving them.

Texas’ Republican governor has called for elimination; Ohio’s GOP governor and Arizona’s 2027 budget paused exemptions.

This fact brief is responsive to conversations such as this one.

Sources

• FrancescaHong.com: Data Centers and AI
• Wisconsin Watch: Wisconsin data center tax break to cost state more than $2 billion
• Wisconsin Legislative Fiscal Bureau: Sales Tax Exemption for WEDC Certified Data Centers
• Wisconsin Department of Revenue: Qualified Data Center Exemption
• Texas Tribune: Abbott recommends sweeping data center regulation, including eliminating sales tax exemption
• Ohio Governor's Office: Governor DeWine Announces Pause of Data Center Tax Exemption
• Bloomberg Tax: Arizona Data Center Tax Incentive Pause Signed by Governor Hobbs

Is Wisconsin state government spending $2 billion on data centers? 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.