'A unique time in Wisconsin's history': WEC Energy Group discusses data centers and rate hikes
CBS 58 MILWAUKEE (CBS 58) -- There are about 2,000 active data centers throughout the United States, with two in Southeast Wisconsin. Milwaukee city leaders called on We Energies to discuss data centers and rate increases to customers Wednesday morning.
It was a conversation that lasted for about an hour-and-a-half, with many questions from alders -- mostly surrounding data centers and their role in our state. Some alders were pointed with their questions to We Energies representatives, asking about their key objectives and increasing rates to customers.
The centers have drawn critiques as they use high amounts of water and energy to run. We Energies has affirmed none of those costs would be passed onto regular customers. Yet alders want to keep data centers out.
"When a data center approaches you guys, would you be willing, right now, to say Southeast Wisconsin doesn't want new data centers, so find another utility or location?" Ald. Alex Brower asked.
"We have an obligation to serve," said Robert Garvin, executive vice president for external affairs, WEC Energy Group. "Whether you're a hardware store or a data center."
Across the country, 2,000 are up and running while 3,000 more have been announced. Here in Wisconsin, we have 18 active data centers, though none are of the hyperscale size. But as we've reported, that will soon change. Massive projects are underway in Port Washington and Mount Pleasant.
Microsoft in Mount Pleasant says they'll hire 500 full-time employees, growing to 800 with a second data center. Meanwhile, Oracle's Port Washington data center says they'll have 1,000 employees on site.
Another point of discussion were rate hikes, expected to go up around $35 a month within two years.
Alderman Bob Bauman claims this is because We Energies isn't a public company.
"The bottom line is you are private corporation, owned by shareholders who are expecting to make money off of that investment, and that's your prime directive in the company," Ald. Bauman said.
We Energies stands by their claim they're doing their best to keep costs low for customers, stating their rate increases are consistent with inflation. They added they're "investing over $12 billion in renewable energy over the next 5 years."
Alders asked WEC Energy Group a few times about freezing rates, and that doesn't appear to be an option, according to We Energies. They cite insufficient revenues alongside rising costs of labor, construction, operations and maintenance. Alders then came back and said We Energies customers are facing those same impacts.
Ald. Brower noted when "We Energies is compared to other municipal utilities... We Energies charges more that any municipal utility," and when compared to all utilities in our state, they're reportedly the second-highest rates in Wisconsin. He is looking to replace We Energies with a publicly-owned electric company. This would reportedly take years to accomplish and cost "billions of dollars" according to Brendan Conway, director of media relations, WEC Energy.
CBS 58 has a series taking a deep dive into Data Centers. You can find our previous in-depth reporting here.
