Data center deep dive: special report on why tech companies are focusing on Wisconsin

CBS News

MILWAUKEE (CBS 58) -- The tech industry is eager to make Wisconsin the next data center frontier.

But the fast construction and frequent proposals are making it difficult for communities and concerned advocates to keep up.

In a new series, we're going beyond the daily developments. We'll dig deeper into data centers to see how people are impacted and what could happen next.

We've talked with people in many communities where it feels like the data center issue snuck up on them. A short time ago no one knew what they were. And now there are plans and proposals, questions and concern.

Amy Barrilleaux is the communications director with Clean Wisconsin. She told us, "It feels like it's the biggest issue that we have worked on in a long, long time. And that's because it touches everything that we care about."

For decades data centers were little more than server rooms, often unnoticed in nondescript city buildings or on college campuses.

But with artificial intelligence taking off with unprecedented speed, tech companies are now scrambling to build hyperscale data centers, some of which approach the size of airports.

Nationwide, nearly 2000 data centers are up and running. 750 are under construction. And more than 3000 more have been announced.

Virginia leads the way with more than 300 operational, nearly 150 under construction, and nearly 600 more announced.

But it's a different story in Wisconsin, where only 18 data centers are active, and none of them are of the hyperscale size.

But that will soon change. Massive projects are underway in Port Washington and Mount Pleasant. And tech companies are looking for other sites.

David Strifling is the director of the Marquette Water Law & Policy Initiative. He said, "This has gone from something that was, I think, pretty far under the radar, to something that a lot of people are really concerned about."

Strifling added, "It's really something that has exploded over the last year, and I think rightfully so, to answer your question I think it really is an important issue for the future of our state and our country.

Wisconsin has extensive land, energy, and water resources needed to operate the massive facilities.

But secrecy and nondisclosure agreements are fueling skepticism, fear, and anger.

And so far, the state's regulatory process is also in its infancy.

State Rep. Angela Stroud, a Democrat from Ashland, has sponsored one bill that would begin to regulate data centers. Stroud told us, "We know this is a key part of our economy. We know that this is a growing industry, but we have to have a regulation that protects the public and the environment. We have zero regulation currently."

But so far, Stroud's bill has not been advanced. Nor has a Republican sponsored data center bill.

Some community officials have embraced the potential: major tax revenue from an industry.

Port Washington Mayor Ted Neitzke once told us, "It will introduce tech jobs to our region, we'll become a hub for other secondary and tertiary businesses, and it will bring a significant influx of opportunities for our local businesses."

With each rumor of a tech company eying a new community to develop in, opposition groups worry of a burst bubble.

They're raising concerns about the economy, the environment, and the ethics of data centers.

Dr. Michael Zimmer is the director of the Marquette Center for Data & Ethics. He said, "It's really one of the biggest issues that people are paying the most attention to, right now."

Zimmer added, "It's one of those things that's moving so fast it's really hard for us to pause and think about those ethical implications."

We've covered individual developments for months, talking with people living on the front lines, like Jayne Heun of Port Washington, who told us, "For the first three months of construction they worked 24 hours a day, seven days a week.  I came home from work at midnight last night and there was a line of trucks as far as the eye could see."

We've also spoken with people monitoring the economic impacts.

And as the industry evolves, so will our focus. As we move forward, we'll do periodical deep dives into the questions and concerns that develop along the way.

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