The Wisconsin Assembly has advanced a controversial bill aimed at regulating data centers across the state. The legislation, which passed largely along party lines with a vote of 53-44, introduces requirements for water recycling, utility rate structures, and land restoration, while leaving renewable energy provisions less stringent than some had hoped.
The bill, supported primarily by Republicans, seeks to address the impact of growing data center developments on Wisconsin’s energy grid and water resources. Under the legislation, data centers - not consumers - would bear the costs of infrastructure improvements needed to facilitate their operations. Additionally, the bill mandates that data centers recycle water used for cooling equipment and report their water usage to the Department of Natural Resources. If a data center project is abandoned, the owner would be responsible for restoring the land to its original condition.
Rep. Robert Wittke, R-Caledonia, whose district previously debated a now-defunct data center proposal from Microsoft, described the legislation as a means to attract industry to the state. "The state’s role is to open the door for industry", Wittke said. He also criticized proposals for stricter oversight, stating, "People here believe that we should have the heavy hand of government dictate what kind of rate that this company should basically have, instead of allowing arm’s length negotiation between the PSC and Microsoft to decide what is … the burden of their cost to have."
The bill has faced significant criticism from Democratic lawmakers, who argue that it fails to address environmental and energy-related concerns. One contentious provision requires data centers relying on renewable energy to source it directly from their own property, a move Assembly Speaker Robin Vos, R-Rochester, defended as necessary to protect neighboring communities. "That’s to prevent people who don’t want to live across from a solar field paying for somebody else’s power needs", Vos stated.
This requirement was singled out by Rep. Angelito Tenorio, D-West Allis, as particularly harmful. "Instead of requiring data centers to add new renewable capacity to the grid, this bill makes it harder. Instead of reducing emissions, it locks data centers into dirtier, more expensive fossil fuels", he said.
Rep. Angela Stroud, R-Ashland, criticized the overall development of the bill, calling it "severely underdeveloped" and "an embarrassment." She emphasized the need for more thoughtful legislation, citing concerns about the rapid growth of artificial intelligence technology, risks to the environment, and the potential impact on energy costs and property values. "There’s nothing efficient about poorly constructed legislation when it causes problems on the back end, which is why it is our responsibility to do the work of due diligence and get it right", Stroud said.
The legislation comes amid a national boom in data center construction driven by the increasing use of artificial intelligence tools. These facilities, often sprawling and warehouse-like, require significant amounts of water and power, drawing scrutiny from local communities concerned about resource consumption and environmental impacts. Wisconsin has seen growing proposals for such developments, sparking debates in cities across the state.
Democrats had introduced a competing bill that would have required data centers to use renewable energy for most of their power and meet prevailing wage or union wage standards for construction workers. However, that proposal failed to gain traction. On Tuesday, Democratic lawmakers attempted to attach similar amendments to the Republican-led bill, but those efforts were unsuccessful.
Ultimately, two Democrats - Rep. Jodi Emerson of Eau Claire and Rep. Steve Doyle of Onalaska - broke from their party to support the bill, while Rep. Lindee Brill, R-Sheboygan Falls, was the sole Republican to vote against it.
As data centers continue to proliferate in Wisconsin and beyond, the debate over how to balance environmental protection, energy use, and economic development is far from over. For now, the approved legislation signals a step toward regulating these facilities, albeit one that remains controversial.
