Data Centers

Public Comment Period Open: First PSC Case Tied to Data Center Development!

The Public Service Commission of Wisconsin is now accepting public comments on its first major case connected to data center energy use. This is the time to make your voice heard!

In 2025 and beyond, one of the most consequential issues facing Wisconsin’s energy future is the wave of AI data centers proposed by companies like Microsoft, OpenAI and other hyperscaler tech companies.

These facilities demand massive amounts of electricity, with just one using as much power as an entire city. The scale is daunting: It took We Energies 125 years to have a system that went from 0 to 5 gigawatts. And in recent weeks the utility has announced plans for 3 more GW of power. The utility’s parent company is now forecasting its whole system could double in size — just to serve two data centers, one in Racine County and one in Port Washington.

While utilities stand to profit for decades from such projects, CUB is asking the tough questions: How many of these data centers will actually materialize? And if they do, can we ensure Wisconsin utility customers — not billion-dollar tech companies — don’t end up footing the bill for new plants and power lines?

Data Center FAQ: What You Should Know (and What You Can Do) 

A data center is a facility that stores and processes digital data, from websites and streaming platforms to AI computing. These buildings operate 24/7 and require huge volumes of electricity, and in some cases, large amounts of water for cooling.

Data centers are one of the fastest-growing energy users in the country, and they’re now coming to Wisconsin. 

Data centers use a large amount of electricity, which can lead to utilities building costly new infrastructure. 

If these costs aren’t fully covered by the companies using the power, they may be shifted onto everyone else’s bills, including households, renters, and small businesses. CUB’s position is clear: Utility customers should not be subsidizing private data center development. 

We Energies has proposed a new tariff, which is a special rate structure designed specifically for data centers, particularly those over 100 megawatts (MW). This proposal must be approved by the Wisconsin Public Service Commission (PSC) and could set a precedent for other utilities. 

CUB, and other consumer advocacy groups, are raising concerns about the proposal. 

Key points we’re watching: 

  • Data centers must pay for all infrastructure needed to serve them.
  • Other customers should not see higher rates as a result of these projects. 

CUB is actively: 

  • Analyzing utility filings for unfair or hidden costs.
  • Demanding transparency in how rates are structured.
  • Educating the public and encouraging action.

Our bottom line: Tech companies should not get a free ride on Wisconsin’s energy system! 

You can get involved – your voice matters! Decisions about data centers and energy rates are happening right now, and public pressure can make a difference. Here’s how: 

Submit a Public Comment 

Submit a written comment and tell the PSC that Wisconsin needs a fair data center tariff, one that holds tech companies accountable for the full cost of serving their massive energy needs. 

The public comment period is open until February 17. 

Attend a Virtual Public Hearing – Tuesday, February 10 

Speak directly to the PSC and share your concerns. You don’t need to be an expert! Your perspective as a utility customer matters. 

1:00 p.m. Session 

Join via Zoom 

Join by phone by calling 312-626-6799. Enter meeting ID 809 513 2930# 

Watch on YouTube livestream 

6:00 p.m. Session 

Join via Zoom 

Join by phone by calling 312-626-6799. Enter meeting ID 809 513 2930# 

Watch on YouTube livestream 

In The News

Make Your Voice Heard!

Submit a Comment to the PSC: Make Your Voice Heard
The public comment period is open until February 17, 2026. Make your voice heard by submitting a comment to the PSC here.
Attend One of the PSC’s Virtual Public Hearings

We’re urging the Public Service Commission to closely examine these proposals to prevent unnecessary overbuilding and to protect consumers from long-term costs tied to infrastructure that may become obsolete.

Wisconsin should join other states and adopt integrated resource planning processes that craft a coherent well thought out road map for the energy transition. Without that, our energy system is careening down the highway without the benefit of GPS — or even a map!

The CUB team is actively engaged in state and national conversations about data centers and utility affordability. Check out the links below!

Perspectives on Data Centers

Data centers have sprung up across Wisconsin creating odd political fault lines | Opinion
870 450 Leah Steinberg

By: Kristin Brey | Milwaukee Journal Sentinel Data centers may not spark the same emotions as abortion or taxes, and the policy positions won’t track neatly along red vs. blue lines, but they reveal a deeper debate. Read the Opinion Article

Will Data Centers Gobble Up Wisconsin?
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By: Bruce Murphy | Urban Milwaukee This Urban Milwaukee column raises sharp concerns about the true costs of Wisconsin’s data center boom. While companies like Microsoft receive generous tax breaks and few job requirements, ratepayers could be left funding billions in infrastructure—with little transparency or public oversight. The piece highlights how utilities like We Energies…

Who Really Pays for Data Centers Powered By Fossil Fuels? 
870 450 Leah Steinberg

By: Union of Concerned Scientists This blog from the Union of Concerned Scientists outlines how fossil-fueled data centers threaten energy affordability and the environment. Utilities often build costly gas infrastructure to serve data centers, passing those expenses onto ratepayers—whether or not the projects succeed. The article calls for reforms like dedicated rate structures, stronger regulatory…

Customers First:  May Power Breakfast on Data Centers
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CFC’s 2025 Power Breakfast featured discussions about data centers and energy use. Thanks to WisconsinEye for providing coverage of the event. Watch Here

Current Cases

PSC Case Involving We Energies tariff for data centers, including Microsoft in Racine County and OpenAI/Oracle/Vantage/Cloverleaf in Port Washington: PSC Docket 6630-TE-113

PSC Case Involving Alliant Energy contract for data center in Beaver Dam: PSC Docket 6680-TE-115

Reports

New UCS Analysis Reveals Billions of Dollars in Unreported Data Center Costs Passed onto PJM Customers
870 450 Leah Steinberg

By: Daela Taeoalii-Tipton | Union of Concerned Scientists  A new analysis from the Union of Concerned Scientists finds that PJM, the nation’s largest electric grid operator, is underreporting billions in costs linked to data center energy demands. These hidden expenses—largely tied to new fossil fuel infrastructure—are quietly being passed on to customers. The report warns…

Demand growth and risk management
870 450 Leah Steinberg

Critical Consumer Issues Forum July 2025 report urging data centers to put “downward pressure on rates” Read the Report

Future-Proof AI Data Centers, Grid Reliability and Affordable Energy
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ACEEE Data Centers White Paper Read Here

Extracting Profits from the Public: How Utility Ratepayers Are Paying for Big Tech’s Power
870 450 Leah Steinberg

A new paper from Harvard’s Electricity Law Initiative reveals how utility customers are unknowingly helping to subsidize the energy costs of Big Tech’s expanding data centers. The report explains how utilities use existing rate structures—and sometimes secret contracts—to shift infrastructure costs onto the public. With little transparency and limited regulatory checks, the authors warn that…