Data Center Regulation Bill Proposed 

By

Ella Silva

Wisconsin State Senator Mark Spreitzer (D-Beloit) has announced that he is the co-author of a bill that would regulate the construction of data centers in Wisconsin. Data center construction has been an ongoing topic in Wisconsin recently, but there are currently no state laws that address this topic. 

The proposed bill, LRB-5432/5440 was unveiled on Nov. 6 by Senator Jodi Habush and Representative Angela Stroud. Senator Spreitzer states, “I am proud to be a co-author of this proposal. As our communities are approached by data center developers and massive tech companies, it is important that the state provide a strong regulatory framework for data center projects to protect area residents, our environment, and workers. “While this bill may not address every issue around data centers, it will provide important guardrails for these projects as they are considered around the state, including in my district in Janesville.”

The bill takes a comprehensive approach to data center regulation. It puts forward safeguards that require data centers to pay their fair share for energy costs. This helps to prevent increased costs unfairly falling back on residents of areas near the centers. It also requires that the data centers get at least 70% of their energy from renewable sources to qualify for existing state tax incentives. This hopefully will help curb the negative impacts these centers have on the local environment. In this same vein, the bill stipulates that data centers must use energy efficient and sustainable building design, and they are required to contribute to energy assistance and renewable energy projects. This will occur through paying fees into Wisconsin’s Public Benefits Fund and Green Innovation Fund. 

LRB-5432/5440 also requires data center projects to pay fair wages and be transparent to the public. When centers are built or refurbished, they must certify that workers are receiving competitive wages for these massive projects. Data centers and utilities must also publicly report water and energy use, and notify when significant new water usage may occur. These stipulations protect and support Wisconsin workers, as well as allow the public to see the impact the data center is having or will have on their local utilities. It also ensures that local utilities and state regulators, as well as residents, are able to fully realize and understand the strain these projects put on infrastructure and the environment.

“This proposal is the result of months of hard work, and I deeply thank Senator Jodi Habush Sinykin for being a leader in this effort,” said Senator Spreitzer. “I look forward to advocating for this bill in the State Capitol and highlighting the need for clear guardrails around data center projects in Wisconsin.”

Featured image: Wisconsin Examiner

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