New Data Center Rate Structure Risks Ratepayers Picking Up The Bill For Big Tech

MILWAUKEE, Wisconsin — The Wisconsin Public Service Commission (PSC) is considering a new rate structure on data centers that favors profits and protections for Big Tech companies and We Energies, putting Wisconsinites at risk to subsidize the infrastructure costs needed for these billion-dollar companies to run their data centers. We Energies is preparing to now spend $19.3 billion on electric generation over the next five years, an increase of nearly $10 billion since the 2024–2028 five-year plan, largely driven by data center proposals from Microsoft, Oracle, Vantage, and OpenAI.4.

In response, Cassie Steiner, Senior Campaign Coordinator, released the following statement:

“As data center proposals continue to surge across the state, Wisconsin regulators must enforce common-sense, protective measures that will ensure Big Tech will be responsible for paying for their massive data centers, not Wisconsinites. It’s no secret that Big Tech and monopoly utility companies like We Energies are using the AI boom to exploit Wisconsin’s resources and squeeze communities for profit. We’re asking for fair, pragmatic implementations that won’t force Wisconsinites to pick up the bill for greedy tech companies. Big Tech must pay its own way, be transparent and accessible in all of its reporting and planning, and be required to use clean energy in order to protect customers from fuel fluctuations.”

Sierra Club’s testimony highlighted the potential impacts on ratepayers and concluded:

• A new report by Energy Futures Group found that the demand for gas from these data centers, if they aren’t required to use clean energy, would increase energy costs for all ratepayers. To prevent this, data centers should be required to use clean energy to protect customers from fuel fluctuations.

• To protect ratepayers from subsidizing costs, data centers must pay for 100% of the new energy demand, including the costs of new infrastructure, such as new gas and renewable projects and new transmission lines. The current proposal does not adequately protect We Energies’ customers.

• The current proposal does not ensure that all data centers are required to be part of the current tariff structure. In order to protect ratepayers from stranded asset costs and paying for prospecting on Big Tech’s part, the tariff and associated rate schedule must be mandatory for every data center owner and operator, and they need to be locked in for the life of the infrastructure that is created to support their data center. Otherwise customers are footing the bill.

About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person’s right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.