# Wisconsin: 2025 Assembly Bill 840 Source: https://www.youtube.com/watch?v=0NRPkmcdO8g Recap page: https://rapidrecap.app/video/0NRPkmcdO8g Generated: 2026-01-23T03:04:30.285+00:00 --- ## 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). ![Screenshot at 01:13: The on-screen text highlights the bill's focus on financial liability, stating that data centers must pay for infrastructure like electricity, water, and money in a specific sense of 'financial liability' for when things go wrong.](https://ss.rapidrecap.app/screens/0NRPkmcdO8g/00-01-13.jpg) **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. ## Detailed Analysis The discussion focuses on Wisconsin Assembly Bill 840, introduced on January 9, 2026, which fundamentally alters the regulatory landscape for data centers. Section 1 of the bill defines a data center as a facility whose primary purpose is storing, managing, and processing data, requiring closed-loop cooling systems for any new construction. Section 2 mandates that data centers must pay for their own infrastructure costs; for example, if a data center needs a $10 million substation, the company pays for it, rather than socializing the cost to all utility customers. Section 3 further solidifies this by requiring data centers to report annually on their total water usage to the DNR, treating it as a taxable item. The bill effectively decouples the data center's energy and water consumption from the general rate base, forcing companies to internalize the external costs they previously offloaded. This is illustrated by comparing the data center's massive power draw (potentially 100 megawatts) to a local power/water utility, suggesting the bill forces the company to bear the burden rather than passing it on to residents. The speakers conclude that this is a bold legislative move that forces the true cost of cloud computing onto the entity consuming the resources, rather than the general populace or local water table. ### Bill Introduction and Scope - Wisconsin Assembly Bill 840 introduced January 9, 2026 - Section 1 defines data center and mandates closed-loop cooling - Section 2 addresses financial liability for infrastructure costs ### Financial and Resource Requirements - Data centers must pay for new infrastructure (e.g., $10M substation) - Prohibits using Renewable Energy Credits (RECs) to offset physical footprint or water usage - Requires annual reporting of total water use to DNR ### Impact on Cost Allocation - Flips the traditional model where utilities socialize costs across ratepayers - Forces companies to internalize costs for power generation and water use - Creates a 'firewall' between large tech and residential/rural users ### Conclusion and Implications - The bill forces transparency on the true cost of the cloud - It is a 'bold bet' that could lead to other states adopting similar models - The state is effectively telling tech companies they must be self-sufficient. ![Screenshot at 00:00: Establishing shot showing the podcast image with the text 'BECOME A MEMBER TODAY!' against a background of an audio waveform.](https://ss.rapidrecap.app/screens/0NRPkmcdO8g/00-00-00.jpg) ![Screenshot at 01:13: A clear visual of the term 'financial liability' being discussed, emphasizing the cost burden shift proposed by the bill.](https://ss.rapidrecap.app/screens/0NRPkmcdO8g/00-01-13.jpg) ![Screenshot at 02:22: The speaker identifies electricity as the first major resource pillar being scrutinized by the proposed legislation.](https://ss.rapidrecap.app/screens/0NRPkmcdO8g/00-02-22.jpg) ![Screenshot at 05:56: A visual reference to the cooling system analogy, where the data center's cooling system is compared to a car's radiator, which must be self-contained.](https://ss.rapidrecap.app/screens/0NRPkmcdO8g/00-05-56.jpg) ![Screenshot at 08:37: The speaker explains that the bill forces the company to bear the cost of the data center's physical footprint on power generation.](https://ss.rapidrecap.app/screens/0NRPkmcdO8g/00-08-37.jpg)