The column below reflects the views of the author, and these opinions are neither endorsed nor supported by WisOpinion.com.
MADISON, Wis. – During a televised debate in which major Democratic candidates for governor sought to stand out in a shrinking crowd, their positions on building more mega-scale data centers in Wisconsin were largely nuanced.
Only one candidate called for an outright moratorium, while the others took stances that ranged from a post-election pause to quickly imposing state regulations tied to environmental worries, energy use, tax incentives and requiring union workers to be hired for construction.
No one mentioned that Wisconsin could be left behind in the worldwide race to build data centers, which are directly tied to the inexorable growth of artificial intelligence – especially in industries core to the state’s economy.
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That’s in large part because political candidates can read public opinion polls as well as anyone. Those surveys suggest three-quarters of Americans currently think data centers waste land, water and electricity while shifting costs to them. Meanwhile, the markets are taking a more cautious approach, as well, as AI investment euphoria floats back to earth.
What these candidates miss is that Wisconsin need not reinvent the digital wheel. Other states are coming to grips with the rise of mega-scale data centers in ways that could be studied by the state’s non-partisan advisory councils between now and when the next governor – Democrat or Republican – takes office.
The only Democratic candidate to urge a statewide moratorium on large data centers was Francesca Hong, a state legislator and democratic socialist who has criticized other state policies or laws she believes are harming local governments and public schools.
“This moratorium is necessary so we can responsibly put in enforcement mechanisms to protect communities,” Hong said.
Others seemed more willing to let communities protect themselves through existing zoning, planning and other rules with help from the state as needed.
Joel Brennan, a former state Department of Administration secretary, said he hasn’t called for a state moratorium but favors a 100-day construction “pause” starting early in 2027. Kelda Roys, a current state senator, said she doubted a moratorium bill could pass the Legislature, but urged other safeguards and creation of an on-call, state “negotiating team” to assist communities. Milwaukee County Executive David Crowley said he doubts a moratorium would address long-term concerns, adding he would rather focus on making data centers pay for their use of clean energy and power grid upgrades. Mandela Barnes, who dropped out of the race Thursday, talked about building more “guardrails” for local communities.
No matter who wins the Aug. 11 Democratic primary, he or she will face a presumptive Republican nominee whose data center stance isn’t all that different. Republican Tom Tiffany opposes state subsidies for data centers, using “productive farmland” for their development and cost-shifting of electricity demands (which the state Public Service Commission already actively discourages).
Large data centers are being built, proposed or operated in 45 states and Washington, D.C. Other than New York, no U.S. state has a ban on data centers. Fourteen other states have considered or enacted temporary construction pauses, localized moratoriums or stricter utility guardrails. That’s according to the National Conference of State Legislatures.
In an April report, NCSL said 38 states offer dedicated tax incentives for data centers, ranging from sales and use tax exemptions to property tax abatements. Wisconsin is among the 38 states.
It’s worth noting that data centers – which store and process digital data, as the name suggests – have been a part of Wisconsin’s landscape for decades. Forty-seven smaller data centers are already located in the state; three mega-scale centers are under construction or proposed.
Wisconsin’s data center debate, much like discussions in other states, is far from over. Political candidates in both parties must be careful not to hurt their own constituents – people who work in manufacturing, health care, construction and other sectors – by imposing ill-considered rules. The only winners in that approach will be other states or nations.
Still is past president of the Wisconsin Technology Council. He is an adviser to Competitive Wisconsin Inc., a non-profit public policy group.
