(The Center Square) – A group of Wisconsin Republicans are pushing a data center bill that would require utility rate increases are paid by data centers and not the general public, that the centers used closed-loop cooling systems to limit water use and that they submit annual water-use reports to the Department of Natural Resources.
Assembly Bill 840 had its first public hearing in the Assembly Committee on State Affairs on Wednesday.
“Wisconsinites deserve certainty that their electric bills won’t go up simply because a data center moves into our state,” Rep. Jerry O’Connor, R-Fond du Lac, said in a statement on the bill. “AB 840 is designed to protect all Wisconsin consumers, not just those who live near a data center.”
The bill would charge the state’s Public Service Commission with ensuring that utilities do not increase rates based on data center energy use.
The bill comes as Microsoft – which is building a pair of data center projects worth a combined $7 billion at the former Foxconn site in Racine County – made similar promises to pay for energy costs itself, limit water use and replenish more than it uses, create jobs and that the company won’t ask for reduced local property tax rates.
The Wisconsin data centers are in a tax increment district, meaning property tax value increases from the development will be eligible to be captured and returned to Microsoft instead of going to the general property tax base. Wisconsin data centers are also excluded from having to pay sales tax on electricity or construction materials.
“We’ll pay our full and fair share of local property taxes, adding revenue to local towns and cities,” Microsoft wrote in a press release authored by Vice Chair and President Brad Smith. “This is obviously critical to supporting the growth a local community often experiences when data centers are built or expanded. And most importantly, at a time when many communities are facing revenue shortages that threaten vital public assets like hospitals, schools, parks, and libraries, we know from experience that this can make a big difference.”
The bill also mandates on-site renewable energy generation to reduce strain on the electric grid. Evergreen Action, an advocacy group, warned against the approach, saying it would force data centers to “rely solely on on-site renewable generation, blocking them from using off-site wind and solar projects that deliver cheaper, scalable clean power” in a statement from State Advocacy Director Courtney Brady.
“Most of what we do in everyday life involves a data center in some type of way – using the internet, cell phone, artificial intelligence, and cloud storage – which is why this bill is so important,” Rep. Alex Dallman, R-Markesan, said in a statement. “It balances the demand for data centers while ensuring that data centers do not interfere with our rights, pocketbooks, or natural resources. I am looking forward to making sure this bill gets through the legislative process.”
