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.