Sierra Club Wisconsin Applauds New Data Center Accountability Legislation

MILWAUKEE, Wis. - Today, State Sen. Habush Sinykin and Rep. Angela Stroud introduced new legislation to bolster transparency and accountability as more tech companies look to build data centers across Wisconsin. There is currently no requirement that data centers pay the full costs of the extra infrastructure or pressure on the grid. Without protections in place, all ratepayers could be footing the bill for these massive energy users. The new legislation prioritizes safeguarding Wisconsin's natural resources, pushes for expanding clean energy, and protecting Wisconsin workers and ratepayers.

In response, Elizabeth Ward, Wisconsin Chapter Director, released the following statement:

"As Big Tech companies like Microsoft and Meta continue to make plans to build data centers in Wisconsin communities, we need regulations that will protect Wisconsin people and resources first and foremost. Unchecked, data centers could wreak havoc on our water and climate, consuming staggering amounts of energy, and Wisconsinites could be on the hook to pay for them.

"Big Tech is looking to use Wisconsin's natural resources like our land and water, and it's imperative that as utilities build new infrastructure to meet these high energy demands, clean energy resources are prioritized and the costs for new infrastructure and energy generation will not be passed onto families and local businesses. We applaud Senator Habush Sinykin and Representative Stroud for introducing this urgent legislation, and we implore the Wisconsin State Legislature to quickly pass this bill."

The legislation also requires:

• Quarterly electricity and water usage reports and proposals (as many of the data center owners will not state how much electricity or water they plan to use).
• The data centers provide good, family-supporting construction jobs if they are going to move forward.
• In order to be eligible for the tax credit, a data center must meet labor standards and use at least 70% renewable energy.
• All data centers to be LEED certified or the equivalent.
• Data center owners pay an annual fee that funds renewable energy, energy efficiency, and low-income energy assistance programs.
• The Wisconsin Public Service Commission (PSC) ensures large customers like data centers pay their fair share.

The bill comes as utilities like We Energies have declared plans to build new gas infrastructure to power data centers. We Energies filed new plans to add nearly 3 gigawatts of new energy capacity to power data centers, including two new gas plants with a combined capacity of approximately 1.4 gigawatts .

Data center proposals have continued to pop up across Wisconsin, including in Port Washington, Kenosha, Janesville, Mount Pleasant, Caledonia, Menonomie, Beaver Dam, and many others. Local communities have been outspoken in not wanting data centers to be built in their community, citing concerns about exorbitant water use, increased electricity costs, and air pollution from diesel generators. Large data centers can consume up to 5 million gallons of water daily - the equivalent water use of a town of 10,000 to 50,000 people.

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