Data Centers

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?

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 to find news coverage, op-eds, videos, helpful links and PSC case information for the cases we’re working on as your utility watchdog!

NEWS COVERAGE

Milwaukee Journal Sentinel Article on New Wave of Power Plants Needed to Serve Data Centers: We Energies plans $5 billion in new energy projects as demand spikes

Milwaukee Journal Sentinel Article on Ups and Downs of Data Centers: Big Tech Brings Resource Challenges

Wisconsin Public Radio four-part series, May 2025:

What are data centers? Wisconsin cities’ potential new neighbors, explained

Power-hungry data centers are prompting new gas plant proposals. Critics say that would lock in pollution and higher costs for decades

         Local leaders see data centers as revenue boon, but critics say subsidy programs undermine those efforts

                           Microsoft built 5 data center campuses in this Iowa city. Here’s what Wisconsin can expect.

Wisconsin Watch Article, May 2025: Data center construction is booming, and it could affect utility rates

Bloomberg News article, September 2025: AI Data Centers Are Sending Power Bills Soaring

WPR Article on new $1.4 billion transmission line, October 2025: $1.4B transmission line project proposed for Port Washington data center 

PERSPECTIVES ON DATA CENTERS

Customers First May Power Breakfast on Data Centers: See the Podcast Video

Maria Chavez, Union of Concerned Scientists, July 2025: Who Really Pays for Data Centers Powered By Fossil Fuels?

Bruce Murphy Column, Urban Milwaukee, September 2025: Murphy’s Law: Will Data Centers Gobble Up Wisconsin?

Krisin Brey Column, Milwaukee Journal Sentinel, October 2025: Data centers have sprung up across Wisconsin creating odd political fault lines

From America’s Dairyland to America’s Motherboard: Wisconsin Comedian Charlie Berens Weighs In: YouTube video

PSC CASES WHERE CUB IS WEIGHING IN

PSC Case Involving We Energies tariff for data centers, including Microsoft in Racine County and 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

Harvard University Report, March 2025: Extracting Profits from the Public: How Utility Ratepayers Are Paying for Big Tech’s Power

Critical Consumer Issues Forum July 2025 report urging data centers to put “downward pressure on rates”: Demand Growth and Risk Management

Union of Concerned Scientists Report, Fall 2025: Billions of Dollars in Unreported Data Center Costs PJM

ACEEE Data Centers White Paper, April 2025: Future-Proof AI Data Centers, Grid Reliability and Affordable Energy

LEARN MORE NOV. 4 AT THE

UPPER MIDWEST ENERGY FORUM

Speakers from CUB Wisconsin, CUB Minnesota, PowerLines, the Great Lakes Fusion Energy Alliance,U.S Green Building Council and Sustainable Business Council will discuss affordability, data centers and other trends during the Upper Midwest Energy Forum on Nov. 4 in La Crosse. Find out more here.

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Public comment period extended for natural gas project
870 450 Tom Content

State energy regulators on Tuesday, March 25, ended a hearing before everyone who attended had the chance to voice their comments about $1.7 billion in natural gas projects proposed by We Energies in Oak Creek. Frustrated members of the public objected to the hearing ending after less than two hours, after the earlier afternoon hearing…

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