Wisconsin is experiencing a surge in construction and development, fueled by the growing demand for data centers. As technology companies increasingly turn to the Great Lakes region for its abundant undeveloped land and reliable access to fresh water, these high-tech facilities are becoming central to the state’s economic growth. Data centers, which store and process vast amounts of information, are expanding rapidly, driven by the rise of artificial intelligence (AI) and other tech innovations.

The demand for data processing facilities has become a major component of large-scale construction projects across the nation. In southeast Wisconsin, thousands of construction jobs have already been created, and the sector promises further development in housing, commercial space, and infrastructure to support tech jobs.

‍Major Projects Leading the Way

One of the most notable projects in the region is Microsoft’s $3.3 billion data center campus in Mount Pleasant. Spanning 1,900 acres, the facility broke ground last year and is expected to create thousands of long-term tech jobs. The project is a collaboration between Microsoft, Kiewit Corp., Walsh Construction, and various Wisconsin-based contractors. It currently employs around 2,300 craft laborers each day.

Other data center projects are also on the horizon. Microsoft has purchased an additional 240 acres in Kenosha County to expand its Mount Pleasant center. In Port Washington, Cloverleaf Infrastructure is planning a 1,900-acre data center campus, expected to take five to eight years to complete. Additional centers are slated for Beaver Dam and Wisconsin Rapids, with projected investments of $500 million and $200 million, respectively.

Energy Demands and Challenges

Data centers are known for their high energy consumption. The Port Washington project alone is expected to require up to one gigawatt (1,000 megawatts) of electricity when completed. Data centers use 10 to 50 times the energy per square foot compared to typical commercial buildings, according to the U.S. Department of Energy.

This increasing demand for electricity is creating challenges for the region’s power grid. The Midcontinent Independent System Operator (MISO), which oversees the central U.S. electric grid, has warned of a potential power deficit of 2.7 gigawatts next summer. By 2030, the region could face a 14,000-megawatt power shortfall if capacity additions do not keep pace with demand.

Microsoft’s Mount Pleasant Project Resumes

In December 2024, Microsoft temporarily paused some parts of its Mount Pleasant data center construction as it redefined certain aspects of the project. Despite the delay, both Microsoft and Mount Pleasant officials have confirmed their commitment to the project.

‍“Microsoft to date has proceeded with construction of its data center development in Mount Pleasant at an unbelievably fast pace,” said Mount Pleasant officials in a statement. “The company is years ahead of schedule in satisfying its financial commitments to the Village under our development agreement,” they added.

Plans for an electrical substation near the project are also moving forward. American Transmission Co. has submitted plans for a 12-acre substation in Mount Pleasant, which will be owned and operated by Microsoft.

Workforce and Training Partnerships

Data centers not only drive construction but also create long-term opportunities for local workers. Dan Bukiewicz, president of the Milwaukee Building and Construction Trades Council, highlighted the growing demand for tech-related infrastructure: “These data centers are part of the fabric of the next generation of how we conduct business. The need for them is only going to grow as technology advances.”

To support this growth, Microsoft has partnered with local organizations like Gateway Technical College and the University of Wisconsin-Milwaukee to help train workers for tech jobs. Through these partnerships, the company aims to upskill more than 100,000 Wisconsinites in generative AI by 2030.

Energy Investments for Future Growth

As data center construction continues to accelerate, energy demand is a key concern. We Energies, the utility company serving the region, has embarked on an ambitious investment plan to meet the energy needs of these facilities. The company’s five-year investment plan includes more than $9.1 billion for renewable energy and $2 billion for natural gas generation to ensure reliable power supply.

In addition to supporting data centers, the company is planning to develop infrastructure for future buildings, schools, and electric vehicles in the region. Brendan Conway, spokesperson for WEC Energy Group (We Energies’ parent company), noted: “What we’re seeing is really strong growth along the Interstate 94 corridor. There’s a data center that’s part of that growth, but it’s beyond just the data center, it’s the growth we’ve seen through all the manufacturing popping up there.”

The Cloverleaf Infrastructure data center proposal, expected to add another gigawatt of demand, is part of this ongoing development. The project is still in its early stages, but construction could begin in fall 2025.

Balancing Energy Needs with Environmental Concerns

As Wisconsin embraces growth in the data center and energy sectors, there are also environmental concerns, particularly around natural gas projects. One such project is the Paris Natural Gas Plant in Kenosha County, which is expected to generate 130 megawatts of electricity. While construction unions support the project for the jobs it will create, environmental advocates argue that the plant’s emissions could harm air quality and public health.

Despite this pushback, Terry McGowan, president of the International Union of Operating Engineers Local 139, stressed the importance of ensuring a reliable energy supply for growing industries like data centers and manufacturing: “Meeting the current and projected future energy needs with solar and wind alone is simply not realistic.”

As Wisconsin continues to experience rapid development in the data center sector, the balance between meeting energy demands, environmental concerns, and supporting local workers will play a critical role in shaping the state’s future growth.

Originally reported by Ethan Duran in The Daily Reporter.