Madison, WI -Rep. Scott Allen (R-Waukesha) today voted in favor of Assembly Bill 840, which implements robust protections for ratepayers, natural resources, and communities in relation to large data centers.

The legislation, coauthored by Rep. Allen, ensures responsible data center development without burdening residents, while positioning the state as a forward-thinking leader in the digital sector.

“Wisconsin is an attractive location for data centers due to its cooler climate,” said Rep. Allen. “Families in Waukesha and across the state, however, deserve to thrive without concerns over rising utility bills or water usage from unchecked growth.”

Under the amended bill, the Public Service Commission must ensure in its rate-making orders that no utility costs for serving large data centers are allocated to or recovered from other customers. Renewable energy facilities primarily serving these centers must be located on-site to minimize sprawl and maximize efficiency. Water used for cooling must be contained within closed-loop systems or equivalent low-water-use technologies, and operators must annually report total water usage to the Department of Natural Resources.

Data center operators also must post bonds or other securities to cover reclamation costs, and if construction is not completed by the expiration of a conditional use permit, owners must restore the site to its pre-construction condition as required by the local municipality. Additionally, developers are directed to encourage the hiring of Wisconsin residents, bolstering local job opportunities.

“What I think is the greatest advantage of this legislation is the conservation of water through the mandate on the closed-loop system,” said Rep. Allen. “Water is one of our most precious resources; we must focus on protecting it.”

The bill now advances to the Senate for consideration.