Republicans introduce data center regulations in Wausau. MWC photo by Mike Leischner
WAUSAU, WI (WSAU) — As Wisconsin becomes a hotbed for AI data centers, lawmakers in Madison want to make sure utility customers don’t pay extra for the power and water-hungry developments.
Republicans are introducing a series of bills designed to prevent the cost of infrastructure from being passed on to ratepayers. Republican Scott Krug says the proposal would instruct the Public Service Commission to calculate the amount of power drawn by data centers and the cost to transmit it to the site, then ensure that no ratepayers are paying more because of it.
“The [PSC process] has some of these elements in it, and the PSC is already trying to put int tariffs on some of their energy use to make sure that they aren’t hurting ratepayers,” said Krug. “We just want to make sure this is codified.”
The package also includes a requirement that land for any patrially completed data center be restored to its previous condition, with any infrastructure left in place as requested by local leaders. Centers would also be required to utilize a closed-loop system for water cooling, which would prevent the centers from draining local wells, lakes, or rivers.
Krug says by now that the data center genie is out of the bottle, with a handful of projects in various stages of completion across the state. He expects more will be coming in the years ahead, and the proposals are not designed to derail those projects. “What do data centers require? Cool weather, lots of water, and a nice environment. That’s Wisconsin, and we have the industrial space. They will be coming, so we have to make sure we are taking care of everybody,” said Krug.
The announcement came in a series of regional news conferences on Monday, including one in Wausau at the Greater Wausau Chamber of Commerce headquarters. Others were held in Milwaukee, Green Bay, and Eau Claire.
Republicans are hoping to fast-track the legislation, with committee hearings possible as soon as this week. The 2026 Legislative session is short, with no floor sessions scheduled after February 19th due to the fall election.
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