Data Centers in Wisconsin
The Perfect Storm of Incentives

Beaver Dam, Caledonia, DeForest, Menomonie, Janesville, Kenosha, Port Washington, Mount Pleasant…

All of these villages and cities have had billion dollar plus hyperscale data center investments proposed in their towns just since 2024, far exceeding the total installed capacity of data centers in the state prior to 2024. Why Wisconsin? Why so many? Why are local officials so eager?

This paper follows the trail of incentives that are creating this perfect storm:

• State law limits tax levy increases to the percentage of net new construction 

• Massive sales/use tax exemptions attract data center developers

• Data center projects represent eye-watering net new construction numbers

• Tax increment financing allows additional massive tax breaks to attract data center projects

But are the taxpayers being protected?

And if not, what state actions might restore protections for taxpayers?