Data Centers

CUB Tracks Ep. 42 – Data Center Madness, Round 1

In this podcast episode, Tom and Corey recap the Data Center cases for We Energies and Alliant energy that set the first Very Large Load electric utility rates specifically targeted at customers like hyperscale data centers.

Listen Here

PSC Hearing Update:

Following the recent Public Service Commission hearing regarding data center power rates, a landmark decision has been reached to protect Wisconsin residents and small businesses from subsidizing the massive energy demands of tech companies. The PSC revamped the original We Energies proposal, mandating that data centers pay 100% of the costs for new power plants and transmission lines built to serve them, rather than shifting a portion of that multi-billion dollar financial burden onto existing customers.

Read CUB's Blog Post

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) 

What is a data center?

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. 

Why should utility customers be concerned?

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. 

What’s happening right now with We Energies?

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. 

What is CUB doing about this?

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! 

What Can I Do?

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

A Clear Win: PSC to Demand Consistent Data Center Pricing Plans
 870 450 Tom Content
“Not a single cent:’ PSC revamps data center power price plan
 545 295 Tom Content
Wisconsin regulators: Data centers must cover full cost of their energy needs
 870 450 Leah Steinberg
Wisconsin debates how to pay for the power-hungry AI boom
 870 450 Leah Steinberg
Electricity analysts raise concerns over proposed data center rate plan
 870 450 Leah Steinberg
Disputes over clean energy may doom Wisconsin data center bills
 870 450 Leah Steinberg
Power Brokers: What’s really behind your soaring utility bills
 870 450 Leah Steinberg

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?
 870 450 Leah Steinberg

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
 870 450 Leah Steinberg

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

The Public Service Commission and Data Centers

Reports

A Clear Win: PSC to Demand Consistent Data Center Pricing Plans
 870 450 Tom Content

State energy regulators on Thursday sent a clear message to Alliant Energy and other Wisconsin utilities Thursday when they required Alliant to develop a standardized rate framework for collecting costs from energy intensive AI data centers. That decision came as the Public Service Commission made critical changes sought by CUB to a contract Alliant signed…

“Not a single cent:’ PSC revamps data center power price plan
 545 295 Tom Content

MADISON – Wisconsin took a big step forward Friday for folks concerned about their rising We Energies bills. “The Public Service Commission’s decision on data center power rates for We Energies signals that the PSC commissioners heard loud and clear that Wisconsinites have significant concerns about energy affordability and AI data centers. And that tech…

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
 870 450 Leah Steinberg

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…