Wisconsin Democratic lawmakers introduced a bill Nov. 11 that would cap residential energy bills at 2% of the household’s income due to the increased energy usage from data centers in the state, according to The Wisconsin Examiner.
The bill was proposed by Rep. Darrin Madison, D-Milwaukee, Rep. Francesca Hong, D-Madison, and Rep. Ryan Spaude, D-Ashwaubenon, at a press conference, according to Wisconsin Public Radio. At the conference, residents spoke about their struggles with utility bills and the harmful effects of not having the energy needed to function, according to The Wisconsin Examiner.
Some residents even expressed how they were cutting other costs, such as healthcare or heating, to pay for their electricity, according to The Wisconsin Examiner.
“Energy burden has been an issue for folks going back to my childhood,” Madison said. “Pulling out candles and flashlights to navigate doing homework until we were able to pay our bill was something common for me, and as I grew up I had more conversations with friends who had a shared experience.”
Madison said that since being elected, he had also spoken with constituents who have struggled with similar issues, especially with the rising cost of food, healthcare and housing around the state of Wisconsin.
Several lawmakers have connected the introduction of this bill to the Democratic Party’s growing focus on affordability, according to The Wisconsin Examiner.
“I think I’ve heard from many of my colleagues that this is a good bill, and as we move toward getting a majority in the assembly and in the State Senate, affordability should be our priority for all Wisconsinites as they struggle to continue to navigate their household budgets,” Madison said.
But, Madison said he has some colleagues who believe the initiative is welfare, which Madison disagrees with.
Legislators have also tied the bill to bipartisan skepticism about the increase in data center construction in Wisconsin, according to The Wisconsin Examiner.
Pushback on data centers is largely due to concerns that they will increase energy bills, University of Wisconsin law professor Steph Ta said.
“I think there’s a concern from that, and that concern arises even in red areas,” Tai said. “There could be bipartisan support for this bill if people are listening to their constituents.”
Wisconsin Democrats have also recently proposed legislation that would hold data centers and large tech companies behind them accountable for the ways they affect Wisconsin workers, taxpayers and natural spaces, according to the Milwaukee Journal Sentinel.
State Sen. Jodi Habush Sinykin, D-Whitefish Bay, and Rep. Angela Stroud, D-Ashland, introduced the bill Nov. 6.
The bill includes many measures to increase transparency and accountability from tech companies and data centers, including requiring public reporting of data centers’ energy and water usage, according to a press release from Stroud.
The bill would also require data centers to meet green building standards and invest in Wisconsin’s public benefits. Additionally, it will clean energy innovation funds while protecting local water resources and ensuring early notice of high-demand projects, according to the press release.
“We need to continue to look at [creating] a more regulatory status for data centers because if we don’t, they will do everything to pass these costs onto consumers,” Madison said.
Stroud said in the press release that this legislation is critical to protect Wisconsinites in the face of an accelerating industry. She also references concerns of high utility rates for customers caused by energy usage.
“Rather than allowing data centers to operate unchecked, we should be creating a regulatory environment that leverages this opportunity for the benefit of the public,” Stroud said in the press release.
Many legislators and constituents are concerned about the rapid increase of data centers in Wisconsin, but regulating them can be complicated due to a recent executive order from the Trump administration, said Tai.
The Trump administration issued an executive order over the summer that aimed to facilitate efficient and rapid construction of data centers.
“I hope there will be legislation protecting people from environmental effects,” Tai said.
Tai said Wisconsin students and community members can voice their opinions on future legislation surrounding energy usage and data centers, including attending town hall meetings in places where data centers are being constructed, contacting legislators and being mindful of one’s own energy usage.
The bill capping residential energy costs will give Wisconsin residents relief during tough times under current state and local budget restraints, Madison said.
“We want to give folks relief and a chance to navigate our trying times while we continue to work on the legislation to make Wisconsin the state where everyone has the freedom to thrive,” Madison said.
