With increasing data-center buildout, utilities are making massive natural gas investments in southeastern Wisconsin, raising objections from customer and climate advocates. Canary Media discusses Wisconsin Electric Power Co.'s request for new gas plants with advanced energy experts, including United's Emma Heins, who explains why the utility should explore clean energy solutions to meet growing energy demand.
An anticipated data-center boom is driving utility plans for massive natural gas investments in southeastern Wisconsin, raising objections from customer and climate advocates.
Critics say they’ve seen big development plans fail to pan out before, and they don’t want to be stuck paying for overbuilt fossil-fuel generation based on increasingly uncertain growth projections.
Wisconsin Electric Power Co. (WEPCO) says it needs to build new gas generation to power a planned $3.3 billion Microsoft data center near Mount Pleasant. The project is on the site of the failed Foxconn LCD screen factory, a proposed megaproject that President Donald Trump promised during his first term would become “the eighth wonder of the world” but that never materialized as planned.
“There’s a lot of healthy skepticism because of the Foxconn project never reaching anywhere near the scale that was being touted,” said Tom Content, executive director of the Citizens Utility Board. “People are asking, ‘Is this real this time?’”
Microsoft has already paused construction on the data center as it reevaluates the scope and how “recent changes in technology” may affect the project. A Chinese artificial-intelligence company in January announced a major breakthrough that it claims allows it to offer AI services with far less computing power, upending global assumptions about the industry’s electricity demand.
Microsoft is also proposing a data center in nearby Kenosha, and a developer called Cloverleaf Infrastructure is proposing one in nearby Port Washington. But the specifics of these data centers and their energy demand are not confirmed, hence critics say the utility hasn’t demonstrated that demand will increase enough to justify the roughly $2 billion in natural gas investments proposed by We Energies (WEPCO’s trade name). Critics also note that an influx of natural gas power seems to contradict Microsoft’s own climate goals of being carbon-negative by 2030.
“We Energies says they want to be ready for other potential customers but has provided no proof of who those customers are or what they want in terms of their energy sourcing,” said Gloria Randall-Hewitt, a resident who spoke at a March 25 hearing held by the Wisconsin Public Service Commission. These projects “carry huge price tags in terms of pollution, detrimental health outcomes, and rate increases for customers. They are asking us to just trust them.”
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