Wisconsin: 2025 Assembly Bill 840

Quick Overview

Wisconsin Assembly Bill 840, introduced on January 9, 2026, mandates that data centers must pay the full cost of new electrical infrastructure (like substations) and prevents them from using renewable energy credits to offset their physical footprint or water usage, forcing them to be fully self-sufficient or risk being considered a failure, which contrasts with the standard practice of utilities carrying the cost.

Key Points: Wisconsin Assembly Bill 840 was introduced on January 9, 2026, regarding data center infrastructure and resource consumption. The bill dictates that data centers must bear the full cost of new electrical infrastructure, such as a $10 million substation, rather than socializing costs across ratepayers. It specifically prohibits using renewable energy credits (RECs) to offset the physical footprint or water usage associated with data centers. The bill defines a data center as a facility primarily for storing, managing, and processing data, and requires that any new facility use a closed-loop cooling system. The legislation ties the cost of power generation directly to the data center's physical footprint, forcing them to pay for infrastructure near their location, unlike the previous model where costs were spread across all ratepayers. The bill also requires annual reporting to the Department of Natural Resources detailing total water usage, treating data center power consumption as a taxable item. The speakers suggest the bill's intent is to prevent companies from leveraging rural land and then externalizing costs onto local residents (like water rate hikes).

Context: The discussion centers around Wisconsin Assembly Bill 840, which proposes significant regulatory changes for data centers operating within the state, particularly concerning the allocation of infrastructure costs and environmental footprints. The speakers analyze the bill's definitions and mandates, contrasting them with historical practices where utilities often bore the initial investment costs for large industrial users.