Potawatomi plans Milwaukee data center expansion

The Forest County Potawatomi Community and its tribal-owned business, Data Holdings, are seeking approval to expand a Milwaukee data center under a zoning exception to the city’s temporary moratorium on new facilities and enlargements.

The proposal calls for an addition of no more than 59,000 square feet at the site, 3234 W. State St. A legislative file seeks Common Council permission to change the property’s zoning to accommodate the project.

Milwaukee’s moratorium does not apply to planned development districts, the zoning designation at the Potawatomi property. Changes within those districts still require council approval.

Expansion remains in early stages

The existing 46,000-square-foot data center opened in 2013 and serves more than 70 clients, including dozens of local businesses and the State of Wisconsin.

"The addition would not exceed 59,000 square feet, and generally would have the same appearance as the existing data center", according to the tribe’s zoning amendment application.

"We’ve been encouraged by the demand from local companies and institutions for our data center services", said Ryan Brooks, Data Holdings chief technology officer and general manager.

"We are in the early stages of exploring a potential expansion onto an adjacent vacant lot on Tribal trust land, consistent with long-term planning that began several years ago", Brooks said, in a statement provided to the Milwaukee Journal Sentinel. "We’re still several months away from having specific plans to share."

The site also has an address of 3125 W. Highland Blvd. It lacks the space needed for hyperscale artificial intelligence data centers such as the projects in Port Washington and Mount Pleasant, which encompass millions of square feet and have drawn opposition.

At 59,000 square feet, the proposed addition would be just below the 60,000-square-foot threshold discussed as a possible limit on Milwaukee data centers.

City weighs new rules

The Common Council approved the moratorium on Oct. 13, allowing up to one year for the Department of City Development to prepare new zoning regulations. Those rules would require council approval, and their adoption could allow the moratorium to end sooner.

Regulations under consideration could prohibit data centers larger than 60,000 square feet. Facilities under 20,000 square feet would be permitted in industrial-heavy zones, while those between 20,000 and 60,000 square feet would require approval from the Board of Zoning Appeals.

Alderwoman Marina Dimitrijevic, the moratorium legislation’s chief sponsor, did not immediately respond to a request for comment on the Potawatomi proposal.

Alderman Robert Bauman, whose district includes the near west side property, said he believes he would support the expansion but wants additional information. In October, Bauman said homes sit 20 feet from the existing data center and that he had never received a complaint about it.

The zoning change application has not yet been scheduled for public hearings.

Debate over development

The Metropolitan Milwaukee Association of Commerce, other business groups and labor unions have backed data center development, citing family-supporting jobs and additions to the property tax base. Opponents have raised concerns about water and energy consumption, along with noise and light pollution.

The Department of City Development will examine both positive and negative effects as it develops proposed regulations.

Resident opposition has already affected another Milwaukee proposal. This summer, the owner of the former Midtown Center Walmart removed a 19,000-square-foot data center from the building’s redevelopment plan after residents objected.

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