Is it time for a moratorium on AI data center construction in Wisconsin?

Candidate for governor Rep. Francesca Hong wants a pause, citing bipartisan calls for more information about the impact on water and electric rates.

As state legislators from both parties call for greater transparency on AI data centers, a Wisconsin candidate for governor says there should be a moratorium on building new facilities that power the growth of artificial intelligence until lawmakers know more about environmental impact, energy usage, and the corporate tax breaks that encourage their construction.

Rep. Francesca Hong (D-Madison) is one of seven leading Democratic candidates running for governor in the August primary. She told us her new plan is called CTRL-ALT-DELETE, like the keyboard command to restart a computer — as a path to “control” of “alternative” energies and “delete” corporate subsidies.

“Not all AI data centers are treated equally,” Hong said. “Some do not pay sales and use tax, which is why we called for a moratorium until we have firm numbers on the water use, energy use, how it’s going to raise rates for ratepayers, the corporate subsidies, and the long-term investment of high quality jobs in our communities.”

Data center projects across Wisconsin and nationwide have come under intense scrutiny because of the vast amounts of energy needed to power so many computer servers, the high volume of water required to keep the facilities from overheating, and the realization that once the construction jobs have left, a data center does not normally have many employees.

A new report from the nonpartisan Wisconsin Policy Forum shows about 40 data centers currently operating in the state, with several proposals already facing growing public opposition. 

Two other Democratic lawmakers, Sen. Jodi Habush Sinykin (D-Milwaukee) and Rep. Angela Stroud (D-Ashland) have unveiled their own proposal meant to boost transparency about these issues, including requirements surrounding pay rates for construction workers. 

Two Republican legislators, Sen. Romaine Quinn (R-Birchwood) and Rep. Shannon Zimmerman (R-River Falls) have introduced a GOP proposal that they say would prevent utility companies from passing the higher electricity costs from data centers onto other customers.

The transparency proposals could also require a “closed loop” water cooling system to minimize groundwater disruption, mandated reports on water usage, and the use of alternative energy sources to avoid requiring large amounts of electricity from fossil fuels.

According to figures from 2023, data centers used 4% of all the electricity consumed in the United States.

Hong noted that data center concerns have become one of the country’s rare bipartisan issues, pointing to Sen. Bernie Sanders (I-Vermont) and Gov. Ron DeSantis (R-Florida) as leading critics who want new rules in place to protect nearby residents, ratepayers, and the environment.

It is far from certain that any data center bill will pass before the Legislature wraps up its 2026 session, perhaps as early as mid-February or early March, according to Assembly Speaker Robin Vos (R-Rochester).