The Wisconsin Assembly Republican caucus held multiple press conferences across the state Jan. 12 to promote a proposal to regulate the construction and operation of data centers.
Republicans — who hold the majority in the Legislature — say their bill would address a number of community concerns.
It follows the introduction of the Legislature’s first data center regulation bill — by Democrats — in November.
Data centers are big buildings filled with computer servers that process, store and transmit the digital information that travels through the internet.
There’s been a huge boom in data center growth in the past year, including in Wisconsin.
There’s also been increasing pushback on a number of fronts.
One is from residents and environmental groups who point out the high amounts of energy and water that data centers use. They’re concerned about the impact on ratepayers and the environment. Critics decry the costly and unattractive extension of high-power transmission lines needed to connect some data centers to the power supply.
“In Wisconsin we appreciate the fact that while data centers have come here, there are an awful lot of things that people have concerns about," said Assembly Speaker Robin Vos (R-Rochester).
At a news conference in Franklin Monday, he outlined the goals of the Republican data center bill.
“[We want] to make sure that we do a better job ensuring that land, water, power and the way that we use them are done in a way that aligns with our values and also ensures that it gives us the opportunity to still be a home to data centers in a more important and hopefully, fruitful way,” Vos said.
The GOP bill would require the Public Service Commission to ensure that no other customers are responsible for the cost of constructing or extending electric infrastructure that primarily serves a data center.
It also would require that water used to cool equipment be contained in a closed-loop system, with a fixed volume of water that’s continually recycled.
Renewable energy facilities that primarily serve the data center would be required to be located at the site of the data center. Republicans say that’s meant to minimize the strain on the statewide grid and to lower costs.
State Rep. Amanda Nedweksi (R- Pleasant Prairie) says the bill will create a path forward.
“With quality of life and affordability at the forefront of decision-making all the time, local and state government officials have collaborated to prioritize protecting ratepayers and protecting the environment while creating a tax atmosphere for innovation in our great state,” Nedweski said.
The bill prompted reaction from organizations that are watching data centers closely. Several say it has a big flaw: the provision requiring that renewable energy used for data centers be generated on-site.
Tom Content is executive director of Citizens Utility Board of Wisconsin.
“One of the cons in the bill is the renewable energy provision because solar is actually cheaper than other forms of generation," said Content. "It used to be ... a high-cost resource, and now it's the most affordable, and so a provision that stops solar development across the state is actually one that will drive up prices.”
RENEW Wisconsin says the mandate would “basically guarantee that data centers will be powered by natural gas.”
“I think it's really important to understand that we're going to have data centers in Wisconsin," said Clean Wisconsin's Amy Barrilleaux. "We've got these things already being built, and if we power them all by burning fossil fuels in our communities, that is incredibly harmful.”
The GOP bill is the second legislative proposal seeking to regulate data center construction and operation.
In November, Democrats introduced Senate Bill 729. It aims to prevent residents from paying utility costs related to data center projects.
The bill also would require at least 70% of electric energy used by data centers to come from renewable resources.
And the Democrats’ measure calls for workers who build or refurbish large-scale data centers to be paid whichever is higher: the prevailing wage — or if the person is in a union — the wage under their collective bargaining agreement.
The Democratic bill has been referred to the Senate Committee on Utilities, Technology and Tourism. The Republican bill has been referred to the Assembly Committee on State Affairs. No action has been taken at this time.
It’s unclear how Gov. Tony Evers would act if a data centers bill crossed his desk. The Democrat told reporters Monday that he believes Wisconsin can regulate data centers in such a way that the state supports job creation and protects the environment. Evers was quoted in the Milwaukee Journal Sentinel.
