Madison, WI — Assembly Bill 840, authored by Representative Shannon Zimmerman (R – River Falls), was passed during today’s floor session. After passage of the bill, he released the following statement:
“Data centers are becoming a foundational component of today’s economy. They are essential in powering the internet, artificial intelligence, cloud computing, and mobile communications,” said Representative Zimmerman. “However, it has become clear that we must strike a balance that protects affordability for ratepayers. My bill protects Wisconsin families by ensuring that data centers pay their own way.”
“This bill also takes important steps to make sure our land and water is used responsibly,” added Representative Zimmerman. “There is nothing more precious than Wisconsin’s natural resources, so there are provisions within Assembly Bill 840 to reduce the environmental impact and have restoration requirements.”
“This bill is what Wisconsin needs to preserve economic growth, our workforce, and consumer protection. If signed into law, we can continue to promote job creation and important investments while also having crucial safeguards for our ratepayers, our water, and our land.”
Assembly Bill 840 requires that the Public Service Commission must ensure in its rate-making orders that no utility costs used for serving large data centers are allocated to or recovered from other customers. This part of the bill protects Wisconsin residents from rising electricity rates, which has become a concern with the construction of new data centers across Wisconsin.
The bill also requires sustainable water usage by requiring that data centers use a closed-loop cooling system, which recycles a fixed volume of water to minimize water consumption. Data centers may also utilize a system that consumes even less water if they wish.
Lastly, the bill includes reclamation and restoration requirements by having operators of large data centers file a bond or other security with the state to cover reclamation costs. If the construction of a data center is not completed, then the site must be restored as required by the municipality.
Assembly Bill 840 now heads to the State Senate for consideration.
