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Support Guardrails on Data Centers

Hyperscale data centers are exactly what they sound like: massive facilities built to handle enormous volumes of data. They support the growing demand for cloud computing, cryptocurrency, and, increasingly, artificial intelligence. 

These large-scale operations can house thousands of servers and require complex systems to manage power, data processing, and cooling. Because they operate continuously, hyperscale data centers rely on extensive energy infrastructure and backup generators to prevent downtime and ensure constant access to data.

Some hyperscale data centers are owned and operated by major tech companies like Meta (Facebook), Amazon, Google, and Microsoft. Others are developed by third-party companies that either sell entire facilities to clients or lease space within them to businesses that need large-scale data storage and computing power.

In Wisconsin, dozens of data centers have been proposed, and some have been approved with little comprehensive environmental review that looks at the cumulative impacts of these data centers and the infrastructure being built to support them.

Currently, there are no guardrails for data centers, including clean energy requirements, protections for customers of the utilities that will be powering these massive energy users, or limits on water use. 

Unchecked, data centers could wreak havoc on our water and climate, consuming staggering amounts of energy, and Wisconsinites could be on the hook to pay for them.

New legislation that has been proposed would address these concerns with data centers. Senator Habush Sinykin and Representative Angela Stroud proposed legislation that would:

  • Require quarterly electricity and water usage reports and proposals (many of the data center owners will not state how much electricity or water they plan to use)
  • Requires that the data centers provide good, family-supporting construction jobs if they are going to move forward
  • To be eligible for the tax credit, a data center must meet labor standards and use at least 70% renewable energy 
  • All data centers must be LEED certified or the equivalent
  • Data center owners much pay an annual fee that funds renewable energy, energy efficiency, and low-income energy assistance programs
  • Requires the PSC ensure large customers like data centers pay their fair share  


Take action today and ask your legislators to support this critical bill.

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I’m writing to you about the proposed legislation about data centers. I’m hoping you will support this bill. I’m concerned about the number of data centers proposed throughout Wisconsin. These hyperscale data centers use an enormous amount of water and electricity and if there are not rules in place, we could see our electricity and water rates rise to pay for them. This is unacceptable. The proposed bill, LRB-5432, would put safeguards in place for these risks. I hope you support the bill. The bill would help offset the impacts of massive energy use by incentivizing clean energy and requiring the companies to pay into a fund for energy efficiency, clean energy, and low-income assistance. It would also require that data centers pay their fair share and ensure that the rest of ratepayers aren’t seeing bills increase because of the strain on the grid and the additional infrastructure caused by the data centers. It would also increase transparency, as many companies won’t admit how much water and energy they plan to use or will use. The bill requires quarterly reporting of electricity. The bill also ensures that if data centers are built, they create good, family supporting jobs. This is a much-needed bill that adds necessary protections to the data centers. I hope you sign on to support this bill. I look forward to hearing from you about this important bill.

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