Data centers also use a lot of electricity; the Port Washington project alone is expected to use up to one gigawatt (1,000 megawatts) when complete. Data centers use 10 to 50 times the energy per floor space of a typical commercial building, the U.S. Department of Energy reported.
Electrical supply falls into sharper focus as the Midcontinent Independent System Operator, the electric grid operator for the central U.S., reported a potential power deficit of 2.7 gigawatts, or 2,700 megawatts, across the region next summer. Data centers or not, there could be a 14,000-megawatt deficit by 2030 at the rate power capacity is being added, a MISO survey showed.
After a pause, Microsoft project in Mount Pleasant continues
In December, Microsoft for two months paused some parts of its construction site as it redefined plans for its data processing facility. Both Mount Pleasant and Microsoft officials said they are still committed to the project as investment bankers reported the tech giant cancelled some of its data center projects.
“Microsoft to date has proceeded with construction of its data center development in Mount Pleasant at an unbelievably fast pace,” Mount Pleasant officials said in a statement. “The company is years ahead of schedule in satisfying its financial commitments to the Village under our development agreement,” they added.
The American Transmission Co. submitted plans for a 12-acre electrical substation at 4811 County Highway H, a Mount Pleasant Plan Commission agenda dated Jan. 22 showed. ATC will own and operate the substation through an easement with Microsoft.
“Our plans to spend over $80 billion on infrastructure this fiscal year remain on track, and our $3.3 billion commitment to Wisconsin remains unchanged as we continue to grow at a record pace to meet customer demand,” a Microsoft spokesperson said in a statement.
Microsoft project putting union construction to work, chipping in for workforce
“These data centers are part of the fabric of the next generation of how we conduct business,” said Dan Bukiewicz, president of the Milwaukee Building and Construction Trads Council, which represents 15,000 people across different trades. “The need for them is only going to grow as technology advances.”
On top of providing construction jobs to build the data centers themselves, construction companies will look into beefing up infrastructure and development around them in coming years.
Bukiewicz said he was confident there were enough tradespeople in Wisconsin to do the work and that registered apprenticeships helped fill the pipeline, however workers from out of state were also driving in to assist with data center work, as well. Both the Milwaukee Building Trades and the Southeastern Wisconsin Building Trades Council will fill staffing where it’s needed, he added.
In its data center announcement, Microsoft said it will partner with organizations such as Gateway Technical College, University of Wisconsin-Milwaukee and United Way Wisconsin to upskill thousands of people in tech jobs and work with hundreds of manufacturers to get an edge on artificial intelligence. The partnership with United Way is expected to upskill more than 100,000 Wisconsinites in generative AI by 2030, officials added.
We Energies investment not just in data centers but also the I-94 corridor
A scramble in Wisconsin has started for both renewable energy resources and natural gas to meet the highly intense energy demands of data centers and future development brought on by large manufacturers.
“What we’re seeing is really strong growth along the Interstate 94 corridor,” said Brendan Conway, a spokesperson for WEC Energy Group, the parent company of We Energies. “There’s a data center that’s part of that growth, but it’s beyond just the data center, it’s the growth we’ve seen through all the manufacturing popping up there. Our planning team is always looking beyond one company and one project, and that brings on a lot of follow-ons,” he added.
Future buildings such as schools, business and homes and technologies such as electric vehicles are also in WEC’s sights for local development, Conway said. “It’s beyond just one project, but we are expecting to see significant growth in the coming years,” around the I-94 corridor from Milwaukee and along Racine and Kenosha counties, he added.
WEC Energy Group’s five-year investment plan calls for more than $9.1 billion in renewables and $2 billion in natural gas generation and storage to meet peak electricity demands, utility officials said.
“The idea is more clean renewable energy and more quick-start, low-carbon energy to meet the growing energy need across the state,” Conway noted.
The Cloverleaf Infrastructure data center proposal is expected to bring another gigawatt of demand onto the grid, said Scott Lauber, president and CEO of WEC Energy Group, in a February investor call. Construction could start in the fall, he added.
“This development is in the very early stages, but all this load is incremental to our current plan,” Lauber said. “So, we’re off to a strong start to the year with great economic prospects,” he added.
In 2024, the company brought the Paris Solar Park online, a $319 million project that brought 180 megawatts of solar capacity to the grid, Lauber said. The utility expects to bring the Darien Solar Park, with 225 megawatts of capacity, online in 2025. WEC Energy Group has a $28 billion five-year capital plan, the largest in company history, Lauber added.
“A balanced generation mix is a significant focus for our electric utilities,” Lauber said. “In the renewable area, over the next five years, we have 4,300 megawatts planned for our expected investment of $9.1 billion,” he added.
For natural gas, the utility company is seeking approval from the Public Service Commission of Wisconsin to build a $300 million, 130-megawatt reciprocal internal combustion engine in Kenosha County. The plant, located in the town of Paris, would be built in mid-2026 if approved. Utility officials said they’re expecting a decision in the coming months.
The project has generated pushback from renewable advocacy groups who want the state to opt for carbon-free energy, citing health risks from exhaust to the nearby Kenosha community.
“The Paris RICE project has significant impacts that are not well-reflected in the draft environmental documents,” said Cassie Steiner-Bouxa, a senior campaign coordinator for Sierra Club’s Wisconsin chapter, in a statement. “The impacts that this gas facility would have on air quality, public health and climate change must be fully considered by the Public Service Commission when they make their decision,” she added.
Construction unions are in support of the project as it promises to bring 200 construction jobs and millions in economic impact to the community. The natural gas plant would be needed as ice and snow hamper solar and wind farms for months in Wisconsin.
“Meeting the current and projected future energy needs with solar and wind alone is simply not realistic,” wrote Terry McGowan, president and business manager of the International Union of Operating Engineers Local 139, in a letter to the commission. “Businesses, such as data centers and new manufacturing facilities in southeast Wisconsin, must have access to reliable energy sources. The Paris Natural Gas project is a step in the right direction,” he added.
McGowan noted that Local 139 also supported renewable energy generation projects. On the utility side, many of the field crews and trade workers who work on solar, battery and natural gas plants were unionized as well.
“We have a great partnership (with unions),” Conway said. “They’re part of our day-to-day workforce and many of our field crews are union workers, as well. As we’re going through this energy transition, we’re working closely with them,” he added.
