GOP proposal aims to protect your energy bill and environment from data centers, joins Democratic efforts

MADISON, Wis. (CBS 58) – A proposal from Republican lawmakers in the Wisconsin State Legislature aims to implement strong protections for Wisconsin families and businesses from utility bill increases and environmental concerns with an increase in data center proposals.

The legislation, circulated by Rep. Shannon Zimmerman (R-River Falls) and Sen. Romaine Quinn (R-Birchwood), would ensure data center development does not come at the expense of Wisconsin families.

Under the bill, the Public Service Commission must ensure that costs for electric infrastructure serving data centers are not passed on to other customers. Tom Content of Wisconsin’s Citizen Utility Board says his nonprofit wants to make sure there are protections in place for consumers.

“There needs to be a statewide framework,” Content said. “As the consumer advocate, we’re there to try to make sure if these do happen that we’re thinking about potential worse case scenarios and having the protections in place to make sure customers aren’t left holding the bag.”

To address environmental concerns in the state, the bill proposal goes on to say data centers must use closed-loop cooling systems that recycle water and report annual water usage to the Department of Natural Resources. All renewable energy facilities serving data centers must be on-site to prevent sprawl and promote efficient energy use. Additionally, data center operators must post bonds to cover reclamation costs if projects are abandoned, ensuring sites are restored without incurring taxpayer costs.

"Wisconsin has a long history of innovation and economic strength, and we've also just solved one of data centers’ biggest challenges with a sustainable water supply," Rep. Scott Allen (R-Waukesha) said in a press release as he announced his co authorship of legislation. "Families in Waukesha should focus on thriving in our community, not worrying about how industrial growth might impact their utility bills."

According to a Marquette University Law School Poll from October, 55% of voters statewide say the costs of large data centers are greater than the benefits they provide, while 44% say the benefits outweigh the costs.

“The reason there’s such interest in this is because energy costs are rising,” Content said.

Democratic lawmakers have also created bills aiming to regulate corporations and ensure development delivers long-term benefits to Wisconsin. In November, Sen. Jodi Habush Sinykin (D-Whitefish Bay) and Rep. Angela Stroud (D-Ashland) proposed a plan that would institute a number of labor, energy and sustainability requirements on tech companies seeking to build data centers in Wisconsin.

On Tuesday, State Rep. Francesca Hong, Democratic candidate for governor, called for a statewide moratorium on AI data center construction,

CBS 58 reached out to the Public Service Commission and the Department of Natural Resources for this story.