Clean Wisconsin urges PSC to reject data center tariff appeal

In its May decision, the commission told We Energies that its AI data center customers must meet strict credit and collateral requirements to ensure they can cover the cost of new power plants and other infrastructure being built to meet surging data center energy demand. Now We Energies is joining forces with tech companies behind the Port Washington AI data center to challenge that order.

“The Public Service Commission did exactly what it’s supposed to do. It acted to protect We Energies’ other customers—families, small businesses, schools, manufacturers—and shield them from the risks associated with these enormous energy users,” says Clean Wisconsin Attorney Brett Korte, who filed the response. “The PSC’s financial security requirements will help ensure that AI companies cover their own costs, which right now are stretching into the billions of dollars.”

We Energies currently has five new methane gas burning power plants either proposed or under construction. The utility has said it expects to double its electricity generation capacity in just the next five years as AI data centers come online.

“We Energies, Vantage and Oracle want to lower the collateral required because Oracle may have trouble meeting those requirements. This shows the high risks that providing utility service to Oracle entails, and it’s exactly why the protections adopted by the Commission are necessary,” Korte says.

In Wisconsin, AI data centers are resulting in new and expensive fossil fuel generation, which will cause lasting environmental and health harms. Meantime, the companies claim the requirements could “narrow the pool of investors” for AI data center projects in Wisconsin.