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CONLEY COMMENTARY (WSAU) – AI data centers are the future. They will lead to construction and technology jobs in our state. But right now, we are blowing it. Under current circumstances, it’s possible that not a single AI project in Wisconsin will come to fruition.
Why? Because these data centers use a tremendous amount of electricity. And Wisconsin doesn’t produce enough right now.
And leadership at the state level has been lacking.
Remember, these power centers must be beyond the regulatory control of some small town in a remote area where land is cheap. One proposed data center uses as much electricity as the entire city of Los Angeles. The infrastructure, things like power plants and transmission lines, are a state issue. No leadership from the state, and these projects won’t get off the drawing board.
The Democrat’s plan is to regulate the data centers out of business before they even get off the drawing board. Their bill would mandate green energy to power them. We could cover the entire state with solar panels and windmills and not generate enough juice. They also propose wage minimums for workers, which is a non-starter.
Republicans unveiled a better idea yesterday, but it’s still insufficient. The state public service commission would calculate the costs of the electricity and the transmission lines for an AI project. And the AI company would have to cover those costs. The GOP plan assures that smaller ratepayers, like you and me, won’t foot the bill. That’s reasonable. But it doesn’t address the power that’s needed to make these projects happen.
Each one of these AI centers needs, essentially, its own power plant to work. 10 AI centers? That means perhaps 7 new natural gas/coal fired plants, similar to Weston Four, and perhaps 3 or 4 more nuclear plants. Without state involvement, the plants will never get built. And the AI centers will go elsewhere.
So, Governor Evers, will this economic development pass Wisconsin by? Will Michigan and Illinois get what we won’t? Texas?
China is already moving ahead.
Chris Conley
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