The column below reflects the views of the author, and these opinions are neither endorsed nor supported by WisOpinion.com.

MADISON, Wis. – One federal policy rests on trade tariffs and “buy America” rules to encourage onshoring of key industries that have relocated abroad. Other federal incentives push for private construction of data centers, which power the revolution of artificial intelligence.

Caught in the middle are efforts to extend “broadband” internet service, a strategy long favored by lawmakers in Washington and states where internet service can range from spotty to nearly non-existent in some rural communities. Wisconsin is one such state.

Broadband is typically defined as high-speed access to otherwise hard-to-reach homes and businesses. That connectivity goal is often met through systems that utilize fiber optic cables, which are filled with thin glass or plastic strands that transmit data as light pulses.

Here’s the emerging problem: There’s a nationwide shortage of fiber-optic cable due to backlogs and price demands, thanks to the data center building boom and federal requirements for domestic sourcing of such cable.

That means Wisconsin and 55 other states and territories will face delays, cost increases and even cancellation of projects pending through a $42.5 billion federal grant, the “Broadband Equity, Access and Deployment” program.  

At risk in Wisconsin are 128 projects from 29 providers that would lever $696.6 million in BEAD awards with $397.5 million in private support to extend broadband service to nearly 175,000 homes and businesses. Projects can be found in all 72 Wisconsin counties.

To help providers get over the fiber-optic pricing hump, the Wisconsin State Telecommunications Association supported legislation in the state Legislature to create a corporate income tax credit. Those bills have cleared the Assembly and Senate and await action by Gov. Tony Evers.

Bill Esbeck, executive director of the association, said the tax credits will “help providers expedite their projects as they compete on a regional and national basis for construction crews, fiber, hardware and other critical resources.”

The fiber-optic supply squeeze has been called a “perfect storm” by jittery internet service providers, who would be at the front end of meeting BEAD requirements on time – if at all.

One Texas manufacturer of fiber-optic cable, Incan America, warned customers “a significant fiber shortage is emerging” and blamed data centers for “sucking up all the fiber production capacity.” That was reported by Light Reading, an industry publication.

Other major manufacturers such as Corning, AFL, Lightera and Prysmian have moved to ease such fears of late, but Esbeck and others close to the ground on broadband projects still worry.

“My members are looking at that ‘commitment’ and still have concerns about the significant unknowns: price and timing,” Esbeck said.

It’s not just Trump-era tariffs that are causing concerns. “Build America, Buy America” rules passed during former President Biden’s tenure required use of American fiber needed to accomplish BEAD’s goals.

“If (Wisconsin providers) have access to BABA compliant fiber but it is 40% more expensive than what was budgeted for the project, that is a serious issue,” Esbeck said. “If the BABA compliant fiber isn’t available until the spring of 2027, they could lose the entire 2026 construction season.”

Fiber shortages are driven in part by the size of orders placed by companies building data centers. A single, $6 billion fiber order placed by one of the “Big 7” AI companies is a lot more attractive to manufacturers than, for example, a $100 million fiber order from a broadband provider or consortium.

Will a corporate income tax credit in Wisconsin fix the national problem? No, but it could help communities that have yearned for broadband coverage for decades. Groups supporting the legislation on Evers’ desk include the Wisconsin Counties Association, the Wisconsin Towns Association, the Wisconsin Economic Development Association, the Wisconsin Electric Cooperative Association and the Wisconsin Cable Communications Association.

The bill sunsets the tax credit after 2030, which means it would no longer be in effect after that date. It would cost the state an estimated $30 million in 2026-27. That sounds like a fair trade to keep more than $1 billion in broadband projects on track.

Still is the past president of the Wisconsin Technology Council and an adviser to Competitive Wisconsin Inc, a non-profit policy group.