MILWAUKEE (July 8, 2026)—A fragmented Wisconsin regulatory process is allowing new methane gas plants built to serve Big Tech data centers to be evaluated without a full review of impacts to the public, according to a new policy brief from the Union of Concerned Scientists (UCS).

The brief, authored by Maria Chavez, senior energy analyst at UCS, explains how independent power producers such as Invenergy and utilities like We Energies are splitting major energy proposals into separate proceedings: one for construction of the plants, and another for the utility’s later acquisition of the power. Because independent power producers are not public utilities with a legal duty to serve the public, the Public Service Commission of Wisconsin’s (PSCW) review of the construction proposals is narrower than it would be if a utility proposed the plants directly.

Over the next two weeks, the PSCW will hear public comment on Invenergy’s plan to build two new methane gas plants in southeast Wisconsin, Foundry Ridge and Red Oak Ridge, to power hyperscale data centers for Microsoft, OpenAI and Oracle. Researchers at the University of Wisconsin-Madison calculated that particulate matter pollution over the 30-year lifespan of the two plants could lead to $1.38 billion in health harms and more than 118 premature deaths. But due to the Commission’s split review process, it’s limited in its ability at this stage to fully consider whether the plants are needed, who will pay for them and their impacts on Wisconsin families and small businesses. As a result, major decisions about Wisconsin’s energy future are being reviewed in silos, even though major consequences would eventually be shouldered by the public.

“Wisconsin’s fragmented regulatory framework isolates decision-making at the expense of customers, restricting the PSCW’s ability to weigh public concern against the harmful impacts of new fossil gas plants,” said Chavez. “As the data center craze hits Wisconsin, utilities are pushing for costly, heavily polluting projects with little transparency and limited accountability. We Energies is charging ahead with the purchase of new gas infrastructure despite significant public concern over the impacts of rising electricity bills, health-harming pollution, high water usage and the threat of stranded assets if the AI bubble bursts.”

According to recent UCS analysis, data centers could drive up to 68% of projected electricity demand growth in Wisconsin by 2030. This drastic increase in demand is creating billions of dollars in electricity system costs that could total $30 billion by 2050. Building a grid ready to handle such extensive growth reliably is expensive and takes time, leading profit-motivated actors to seek shortcuts and pass costs onto other ratepayers where possible. This has led to widespread community backlash across Wisconsin, with multiple localities banning data centers in the past year.

“Right now, a lack of forward-looking energy policies is restricting the power and voice of customers because the PSCW has no way to evaluate these energy proposals—or any others that are being filed across the state—in a holistic way,” Chavez said. “Legislators must prioritize passing long-term energy planning requirements in the next session so that regulators do not have to review cases in silos—especially when interrelated cases are poised to have profound, lasting impacts on community health, despite community concerns. Such changes could increase opportunities for the public to help determine which type of power sources, including more affordable clean energy, are best suited to meet rising energy demand.”

Public hearings are scheduled for the Foundry Ridge project in Darien on July 16 and the Red Oak Ridge Gas Plant in Paris on July 23. UCS will be filing public comment on both proposals.

If you’d like to speak with Chavez, please contact UCS Communications Officer Daela Taeoalii-Tipton at dtaeoaliitipton@ucs.org or 801-808-0759 (c).