Video summary
The video addresses the urgent need for updating zoning codes to accommodate the rapidly evolving data center industry, noting that many current regulations date back to 1996. Bridget Williams from the Great Plains Institute explains that while Wisconsin has fewer proposals than states like Virginia or Texas, it still faces significant development and opposition, with over twenty active moratoriums in place. The discussion defines three primary types of data centers—enterprise, collocation, and hyperscale—and highlights that large-scale facilities often consume at least 20 megawatts or cover more than 10,000 square feet, with some projects exceeding one gigawatt of capacity. These massive operations bring substantial impacts including high electricity and water consumption, air quality issues from backup generators, heat production, noise, and fire safety concerns, potentially consuming up to 580 terawatt-hours by 2028, a figure that surpasses historical industrial users like aluminum smelters.
To manage these challenges, local governments are exploring various strategies such as defining facility sizes based on energy and water usage, requiring conditional use permits, and mandating third-party impact reports. Examples from Linn County, Iowa, and St. Louis, Missouri illustrate how communities can enforce energy efficiency standards like Power Usage Effectiveness and promote renewable energy sources. However, significant hurdles remain, including state preemption limits that restrict local authority, legal risks associated with unequal regulation, and the use of non-disclosure agreements that obscure developer details. The mismatch between rapid construction timelines of two to three years and the slower five-to-ten-year infrastructure development cycle further complicates matters, potentially delaying fossil fuel retirements and straining water resources, particularly since approximately 75% of water usage comes from off-site power generation.
Despite these obstacles, there are opportunities for communities to adopt proactive measures such as Detroit's community benefit ordinance, which requires resident advisory committees for high-value projects, or policies like those in Big Rapids Township that prohibit officials from signing non-disclosure agreements on public interest developments. Tracking industry trends, such as Microsoft dropping non-disclosure agreements, and following legal precedents like the Dane County ruling that energy use is not a trade secret can empower local jurisdictions. Coordination among neighboring jurisdictions helps establish shared understandings of data center impacts, while decommissioning plans are increasingly being required in zoning ordinances, although costs remain uncertain due to limited historical data on facility closures. Additionally, LEED certification offers a pathway for green building practices through energy efficiency upgrades and recycling construction materials, addressing environmental concerns without relying solely on fully self-powered facilities which are not yet common.
The session concludes by emphasizing the complex interplay between local governments, utilities, regulators, and state legislatures in managing grid capacity and consumer rates. While large-scale disconnections can theoretically impact grid balance, no blackouts have occurred yet, though regional entities like MISO are reviewing interconnection requirements to ensure stability with increased development. Water usage concerns vary by location, with facilities near Lake Michigan often utilizing closed-loop cooling systems that minimize on-site consumption, whereas Iowa relies heavily on groundwater. As the industry evolves, defining data centers by size or energy usage rather than specific terms like "hyperscale" provides a more practical regulatory framework. Ultimately, the goal is to align data center development with community goals through technical expertise, transparent evaluation of long-term economic trade-offs, and collaborative efforts that balance innovation with environmental sustainability and public interest.
Read the full video transcript
Thanks for taking the time to be here,
whether you're in person or virtually.
While this is not a committee of the
whole meeting, the committee of the
whole overseas and explores topics the
council is interested in, such as how
best to address emerging industries like
data centers within our zoning code
regulations. As many of you already
know, this series was requested by the
council as part of our zoning code
rewrite project. The last comprehensive
update to our zoning code occurred in
1996 and our world has changed so much
since then. Our zoning code needs to
evolve accordingly. Zoning is one of the
fundamental guard rails that supports
responsible development before
considering
No, I forgot where it was at. Um,
basically what it comes down to, our
goal tonight and for the entire series
is learning to inform later meetings
where we develop strong informed policy.
While this is not a public input
session, public input sessions will be
advertised as this project goes on.
Following this series, the council will
convene as the committee of the whole to
discuss issues identified throughout
these sessions and to develop a plan to
address those issues within the zoning
code. Before we begin, I'd like to
quickly review a few ground rules for
tonight's session. If you have a
question, please write it on a note card
and place it in the collection area near
the older persons. If you need
assistance getting your card there,
simply raise your hand and vol and a
volunteer will help. Questions will be
grouped by topics so we can cover as
much ground as possible. Your questions
may be combined with others that are
similar. For everyone's comfort and
safety, please keep aisles clear
throughout the event. If you brought a
sign, ple we kindly ask that you avoid
displaying it in the seated area so
everyone has an unobstructed view.
Please listen care please listen fully
to each speaker and allow them to share
their information without interruption.
Our speakers are generously volunteering
their time. If the environment becomes
disruptive or unsafe, they may pause or
conclude their participation.
Thank you for helping us maintain a
respectful and welcoming atmosphere.
Now that we got all that out of the way,
the legal makes us do all that. I'm
excited to introduce tonight's speaker,
Bridget Williams. Bridget Williams is a
se is a senior policy coordinator at the
Great Plains Institute. Through this
role, Bridget facilitates the MISO
cities and communities coalition, a
network of local governments that track
regional and federal energy issues,
engage grid decision makers, and
identify opportunities to strengthen
local energy policies. Through this
project and an initiative for Great
Lakes communities, Bridget conducts
research, develops educational materials
and provides technical assistance to
local governments on data center impacts
and opportunities to align data center
development with local
support
for local governments outlining their
opport
to
data center
participations
on data center impacts to local
government and other stakeholders
section of the American works
conference among others. Bridget has a
bachelor of science community.
Let us welcome Bridget please.
test.
>> Be smarter than the technology.
>> Hi everyone. Thank you for coming today.
Um I'm going to have to shorten my bio
for you. That was too much for you to
have to uh say out loud. Um but yeah, so
my name is Bridget Williams. I have been
working on data center issues for over a
year now with local governments uh
primarily that have sustainability goals
but um really with all local governments
that have a variety of energy
objectives. Uh I work for the Great
Plains Institute. We are a nonpartisan
nonprofit organization focused on
accelerating net zerocarbon emissions
for the economy, the people, the
environment. Um our work uh focuses on
facilitate facilitating coalitions and
stakeholder groups, providing technical
assistance, conducting research,
developing plans, programs, and toolkits
to support local governments, state
agencies, uh tribal governments, etc.
My work uh has been with local
governments in the Great Lakes and in
the Midwest regions on data center
issues. Uh and my objective has really
been to help local governments
understand data center impacts and their
levers to align development with local
goals. So my objective is not to tell a
local government one way or another uh
how they should view data center
development but just to try to provide
some neutral fact-based information
about what types of impacts data center
development can have for a community and
what local government's authorities are
to regulate data centers. opportunities
to uh get benefits from those
developments etc.
So I know that I'm the third uh in this
educational series so I won't spend too
much time on what are data centers. Um
you all probably know by now these are
buildings that house servers and
computing equipment associated with
digital data storage and operations.
There are many different types of data
centers but I really focus on three. uh
enterprise data centers which can be
small to midsize. These are owned and
operated by a single organization for
internal use. Um colllocation
facilities. These can be anywhere from
small to largesiz facilities. These are
owned and operated by one company but
they lease space to multiple customers
or tenants like a data center apartment.
And then lastly our hypers scale
facilities. These are large-scale
facilities dedicated to artificial
intelligence and cloud computing. I am
going to focus on these largecale
facilities. I do want to call out that
there are many operating small to
midsize data centers in the state of
Wisconsin already. Uh for example,
there's Fox Communities Credit Union in
Appleton, Wisconsin appears to have a
data center in it. So you may have
driven by a data center and not even
known it. Those are your smaller to
midsize facilities versus what you see
in the news today.
So comm uh large-scale data centers are
increasingly proposed due to growth in
cloud computing and artificial
intelligence. I like to show this graph
that uh is admittedly very uh
challenging to understand. It's uh from
a report that is really on grid impacts
of data center development. But I do
think it paints a nice picture of how
data center development has been
evolving. Uh we used to see these
enterprise smaller to medium-sized
facilities really uh being the bulk of
data center development but increasingly
we're seeing largecale collocation and
hypers scale facilities become more and
more a part of the uh network and expect
to see those really dominate the uh data
center fleet across the country. Um what
when I talk about large-scale data
center facilities, what am I talking
about? There really is not a standard
definition. Um but the criteria that I
use is at least 20 megawws in uh and or
at least 20 megawatts in electric
capacity. Um because at 20 megawws,
that's when facilities can start to
trigger a need for larger grid upgrades.
And then when you get even larger than
that, like 150 megawws, that's when
you're really going to start to see a
need for large-scale transmission
infrastructure.
Um, and then I'm also using a threshold
of 10,000 square ft just because this is
what the independent development
corporation, which is a leading industry
uh company uses as their minimum
threshold for hyperscale facilities. But
as we're seeing facilities are far
exceeding these thresholds. Uh we are
seeing facilities exceeding 1 gawatt of
electricity use. This is equivalent to
the annual consumption of a million
average households. Um and we are also
seeing facilities exceeding 1,000 acres
in size. Uh the Milwaukee Journal
Sentinel was uh estimating these in
Walmart super centers which are on
average 200,000 square feet. So a
thousand acres is roughly equivalent to
245 average Walmart super centers which
can be really mind-boggling to uh
picture. Um an example of this is the
Port Washington data center that was
recently approved. While they are only
currently developing a small portion of
this at full development, the
expectation is that facility will be
1,644
acres um and use an estimated of 3.5
gawatts of electricity. And I should say
just because the facility is capable of
using 3.5 gawatts of electricity doesn't
mean that it will. It just means that
that's its maximum capacity. Um to put
this another way, this is almost three
times the capacity of the Point Beach
nuclear plant here in Wisconsin. So
these facilities can be quite large, but
they do vary. Not all facilities are a
thousand acres or one gigawatt.
So, I do like to show this map because
it can feel like there's a lot of data
center development in the state of
Wisconsin. Actually, compared to our
neighbors, Wisconsin is not seeing the
same type of proposals that uh Illinois
or Iowa are. Uh Virginia, Texas,
California, these have really been the
biggest hosts of data center
development. Virginia hosts the most
amount of data centers in the world. uh
and you uh can expect to continue to see
uh those states hosting a lot of data
center development and with some growth
in Iowa, Illinois as I mentioned and
some other states across the country. Uh
that does not mean that Wisconsin is not
seeing proposals as we all know this
does not mean that local governments
should not update their policies
accordingly. But I do like to just put
this in context. Um this map is a little
bit old but the numbers still hold up. A
lot of the research is still showing
data center development in a lot of
these same states.
Um a lot of time actually before I go
here
a lot of times uh people ask me what
brings data center development to
certain states over others. There are a
lot of different factors that drive data
center development. Uh number one is
access to electric infrastructure. So is
there existing transmission
infrastructure? Are there existing power
plants? um or are there planned energy
infrastructure in the area? Uh energy
costs is a big part of the conversation.
Tax incentives, honestly, most states
across the country have some kind of tax
incentive for data center development.
So, I'm really not sure that that is the
key driver anymore of where data center
development locates. Um, you also have
the uh colder climates that can attract
data center development because the
colder the climate, the less the data
center may need to use electricity or
water to cool its facilities, they can
uh potentially rely on the surrounding
climate to cool their facilities.
Electric utility relationships. So, if a
data center develops in one utility
territory, uh, for example, we saw QTS,
this is a collocation facility
developer. Um they had a project that
was approved in Cedar Rapids, Iowa.
That's where I'm from originally. The
utility there is Alliant Energy. Few
years later, maybe a year later, QTS
proposed a facility in Alliant territory
here in Wisconsin. So developers do
develop relationships with utilities and
you might see them pop up in other uh
utility territories that they own. So
there's lots of different factors that
drive where data centers go.
Trends in Wisconsin. Um we have about 53
estimated operating facilities in the
state. Um some recently approved or op
and those estimating operating
facilities those are smallcale
mediumcale not a lot of largecale
development yet. Um but we do have some
recently approved or operating
large-scale projects. Meta in Beaverdam
Vantage OpenAI Oracle facility in Port
Washington Microsoft in Mount Pleasant.
There have also been several stalled or
suspended projects. Um that QTS facility
that I mentioned in the village of
deforest, a Microsoft facility in
Calonia. Um and there are currently at
least 22 active local data center
moratoriums in the state. Uh so we are
seeing a lot of opposition to this
development. Um, and a lot of
communities are putting a 12 to 18month
pause on this development so they can
really assess the impacts and really get
their zoning ordinance in order before
they review more proposals.
So, what are the potential impacts of
data center development? Both uh
potentially positive and both
potentially negative. There are lots of
impacts that local governments are
interested in when it comes to data
center facilities. their electricity
use, water use and quality,
air quality. So if data centers are
using backup generators on site, what
are the impacts to local air quality?
Heat impacts. Data centers do produce a
lot of uh excess heat. The research out
there is honestly kind of anecdotal on
this, so I'm I can't answer too many
questions about heat, but people are
starting to look more at that issue.
um impacts to land use. If you data
center developments tend to cluster uh
so if you see a data center facility pop
up in a community, you might see more
and more and how will that impact say if
it's an agricultural area or a
residential area, how might that impact
the land use of the surrounding area?
Noise is a big concern. Um fire and
safety is
something that communities are
interested in. I wouldn't say more so
than say your battery storage facilities
or some other um largecale industrial
uses. Um economic benefits communities
are interested in what kind of tax
benefits can I get from these
facilities? Um what kind of local
investment can I get from these
facilities? Virginia has received a lot
of tax revenue from data center
developments. Uh workforce development,
what are the opportunities for
construction jobs for long-term jobs? uh
lighting and traffic. This these
facilities are built quickly um which
can create significant construction
impacts. So if you're having say a
thousand construction workers on a site
um if you ever have I haven't driven by
Port Washington at night but I know that
the Microsoft facility in Racine County
I mean if you drive at night the lights
are pretty insane because they are
building that facility 24/7.
Electronic waste. So what happens to
that mach machinery and equipment that
they replace in the facility if the
facility um is no longer operating? How
do they decommission that facility? Um
which gets into my last bullet point
here too, stranded assets? Um and
lastly, consumer rates. So if these data
center developments are going to be
using a lot of electricity or a lot of
water, how does that impact residents
and other consumers uh electric and
water rates?
I am going to focus on electricity use
and a little bit on water use and
quality because that's just more where
my focus and expertise lies. But if
people do have questions about these
other impacts, feel free. I might
disappoint you, but I do talk with a lot
of researchers that deal in all kinds of
different impacts. And I might have an
example.
So electricity
data centers are expected to consume as
high as 580 terowatts of US electricity
in 2028. What does that mean, you ask?
Well, this is equivalent to about half
of today's US industrial electricity use
in 2025.
And this is coming after decades of
relatively flat power demand. We've seen
a lot of gains in energy efficiency in
this country. We've seen a loss of our
manufacturing base in this country. So,
we have not seen electricity increases
in decades. And we are just starting to
see the potential for that.
Another thing that I didn't put up here,
but that I think can be helpful for
local governments as they're really
trying to figure out, okay, but what is
the difference between say a data center
in an industrial use? some of our
historically large energy users like
aluminum smelters, paper mills, steel
mills. Um, to use one of those examples,
an aluminum smelter, which we really
don't have very many of those left in
this country, but they are estimated to
use about 200 to 800 megawatts of
electricity versus you start to see
these data center facilities that are
using a,000 megawatts or a gigawatt of
electricity. So these can really surpass
what have traditionally been our highest
electricity uses.
And those historical large electricity
uses, they were developed slowly over
time, geographically dispersed with data
center development. You can often see
them cluster and you can see them phase
up very quickly. So it's just it's just
a different type of facility in terms of
um how quickly you're seeing the
electricity use increase and how much
electricity it is using.
Um I like to show this um time to market
for various type of grid projects to
give you a sense of the gap here. So an
average new data center can take 2 to 3
years uh to build versus the associated
transmission infrastructure, wind
turbines, those can take an average of
10 years to build. Um and data centers
really want to get these data center
developers really want to get these
facilities up and running very quickly.
So there's a gap here. Um and developers
are very interested in how do we close
this gap? How do we build generation
resources as quickly as possible to
power these facilities? Um, and as you
can see, some of these other types of
generation resources, solar, for
example, can take an average of 5 years
to build. Gas plants can take about an
average of five years to build. But
there's still a gap between the time it
can take to build data centers and the
time it can take to build these
generation resources.
So, why is this a challenge for
communities? A lot of the local
government governments that I work with
have energy or sustainability objectives
um and they did not account for data
center development. They have been
implementing programs to improve energy
efficiency across their community. Um
and so seeing these potential large
increases in electricity is a challenge
to their plans. Electricity use may also
pose the following conflicts. Number one
is fossil fuel deployment. Electric
utilities are delaying gas and coal
retirements uh in order to uh get data
centers up and running very quickly and
investing in new generation that can be
built quickly to power facilities. Now I
mentioned that natural gas and solar can
both take an average of 5 years to build
but solar alone is less viable to
support 247 data center operations um
without that battery and storage
component. Um in addition, data center
developers or data centers often rely on
backup generators. Uh these are often uh
diesel power generators or gas power
generators to meet 247 power needs. So
if their electric grid uh goes out for
some reason, that data center wants to
keep running those 247 operations and
they may rely on backup generators to
meet it. Another issue is water use. So
you hear a lot about the on-site water
use of data centers uh for their cooling
needs, but actually the associated power
generation, your gas plants, your
nuclear facilities, these generation
resources that use water. This is really
where a lot of the water use associated
with data centers are coming from. Um
approximately 75% of data wa data
centers water usage in the US is coming
from the off-site power generation. And
really, you're not seeing data centers
propose um really water inensive on-site
cooling anymore because it has become
such a big issue. You're seeing a lot
more closed loop um type cooling, which
I'll get into a little bit uh as we go.
But uh really
communities need to be thinking about
both the on-site and the off-site water
usage of these data center developments.
Lastly, of course, is consumer rates.
So, data centers may require significant
electric grid upgrades, which could
impact consumer rates without careful
planning. There are a lot of very smart
people working on this issue, and I'm
really not a rate expert. Um, but
basically, data centers are a part of
our shared electric grid. Um, and so you
can't really just look at this facility
in a vacuum. It's not just, okay, this
data center development is going to use
this much electricity. They need this
much uh generation right now. Do we have
the capacity to meet it? Great. I mean,
we need to be really long-term planning
if we are going to have this much data
center uh electric capacity on the grid
in 10 years, 20 years. How much
transmission infrastructure, those big
power lines are required for these
facilities? How much generation is
required for these facilities? And how
can those things potentially creep into
consumer rates?
um we need really careful planning at
the state level, the regional level to
ensure that uh that's not happening.
So water, uh as I mentioned, data
centers use water for two purposes,
on-site cooling and off-site power
generation. Um how much water a data
center uses for on-site cooling depends
on a variety of factors. I know people
often want to know, well, how much water
does a hyperskll facility use? But it's
very dependent on the facility. Um, what
type of cooling method are they using?
Are they using evaporative cooling which
is more water intensive or air cooling
which requires minimal to no on-site
water? What is the size of the facility?
What is the efficiency of the cooling
method? Um, what is the climate and
season of the surrounding area? So, I
had mentioned that data centers can use
the climate of the surrounding area to
help cool their facilities. Um, in West
De Moine, Iowa, they have a few data
centers and they took a look at how much
water the facility was using during
different times of the year and in the
cooler months of the year, they really
were not using very much water. It was
really only in the summertime that that
water use was increasing.
Um, and then off-site power generation,
which I already touched on.
Um, however,
let me back up for a second here. So,
with the on-site cooling, you often will
hear a lot of different stories with how
much water data centers are using
on-site.
Some community- based organizations will
set talk about how they use 50 gallons,
upwards of 50 gallons of water a year.
Um, how they're really the largest water
users across the country. Um, while you
might also hear developers say, "Well,
really, we're using the same amount of
water as a golf course or a hotel." Um,
honestly, the largest water users in
this country are irrigation and power
generation. That eats up about 80% of
our country's water usage. Um, so data
centers may be using a good amount of
on-site water, but it is true that it is
compared to hotels and hospitals and car
washes. Um, and so while that may be the
case, it's still important for
communities to consider the on-site
water usage of of a facility to ensure
that it's not impacting their local
water footprint. So, if you have a
particularly stressed local water
footprint, even a facility that's using
the amount of water as say a hotel is
still could still potentially be
significant for your community. Um uh
there were some researchers that looked
at where data centers were located and
they found that oneif of data center
servers on-site water consumption comes
from moderately to highly stressed
waterheds and nearly half uh are
partially or fully powered by power
plants located within water stressed
regions. So it's really important that
communities consider their particular
context and also consider what is the
on-site and off-site water use
associated with this facility.
Um, lastly, wastewater impacts. There's
really not great comprehensive research
out there, but I know that people are
interested in this issue. Anecdotally,
this is what uh we've seen. Number one
is there was an Amazon facility in
Oregon. They had a settlement uh on
nitrate pollutions. And what was really
happening there were there were existing
pollutants in the public water supply
that were being concentrated through the
data cent's evaporative cooling process.
So it wasn't that the data center was
adding new pollutants to the water
system. It's that through this process
of evaporative cooling, they were
concentrating all of these existing
nitrates that were in this agricultural
area and uh dispersing that back into
the water system. Um the second
potential wastewater impact is if
coolants or additives are used for
closed loop or other cooling processes.
So closed loop cooling again I'm not a
water expert but essentially a closed
loop cooling system is where a facility
will use a certain amount of water and
that they use it once and it keeps
getting recycled throughout the
facility. Um, but they do need to use a
uh like a flushing process before they
do that. Um, and so if they are using
certain types of coolants or additives
uh in their process, this could
potentially get dispersed out into the
water system through that initial
flushing process. Um and so there was an
example of this where a meta facility in
Cheyenne, Wyoming, um the board of
utilities, which is the water utility
there, they had taken a look at all of
the additives that Meta was proposing to
use in the facility. Uh they had looked
at the flushing system that was being
proposed and they said everything looks
good. and yet um they ended up having to
issue a notice of significant
non-compliance to META after finding a
bacteria at their wastewater treatment
plant. Um and so this is important
because there are things we don't know
about how data centers operate. So even
though the utility really went through
the right formal process to ensure that
they did a thorough review of uh the
company's wastewater plan, there was
still a non-compliance event. Um and
this required labor and expense to
identify the bacteria and source and
treat it. Um and there is now a uh court
case as well. So that also requires
significant expense.
What role do local governments play in
shaping data center development? Um
there are four key ones that I like to
talk about. First is planning and
zoning. So uh communities can include
data center development objectives in
their community plans and establish
zoning requirements. They can enter into
or encourage community benefit
agreements to in to secure investments
and mitigate impacts. Uh they can use
impact studies. So they can assess
development impacts via a study
conducted by a third party to evaluate
the project and determine appropriate
appropriate impact fees or project
modifications. Um there are several
examples of these where the data center
developer pays for that impact study. Um
we're seeing it getting required in
zoning ordinances as well as being a
part of a community benefit agreement.
Um and then lastly external
coordination. So there are some things
that it's just not the local
government's jurisdiction to regulate in
the zoning ordinance. And so this is the
opportunity for local governments to
engage their utilities and grid decision
makers to promote innovative solutions,
proactive planning, rate protections.
Um, and it's also important that local
governments coordinate with their
neighbors because these facilities have
impacts beyond just a certain
community's boundaries.
So I'm going to talk about zoning. Um,
but if people have questions about some
of those other levers, I'm happy to get
into it. Um, so before I get into this,
actually, I'm going to focus on two
community examples, Lynn County, Iowa
and St. Louis, Missouri. That is not
because there are not other examples
across the country, but because I think
these two communities have very
comprehensive zoning ordinances
surrounding data centers. And so I just
think for simplicity, it makes sense to
talk about what each community did. Um
but there are other examples of some of
these components.
So generally a data center zoning
ordinance can establish clear land use
standards while still requiring
discretionary review. So what I mean by
that is that um it's important that
local governments set clear requirements
for a data center specifically. However,
it's also important because these can be
controversial or impactful facilities to
have that public process. So setting
those rules but also requiring some kind
of conditional use permit or um some
type of public process so that the
community is really involved in that
decision. What Link County, Iowa did is
they established an exclusionary zone
for large-scale data centers, meaning
that any developer that comes into that
community that wants to build a data
center, they have to go through a
reszoning process. Um and so that uh
triggers community meetings. Uh St.
Louis, Missouri passed a data center
ordinance, but they require a
conditional use permit.
Communities can also define data center
by size and/or electricity use. Uh as I
mentioned at the start, small-cale
facilities are very different from
large-scale facilities, and it may not
be appropriate to hold those two types
of facilities by the same standards. Um,
in Lind County, Iowa, they define
small-cale facilities as smaller than 20
megawws or that use less than 50 gallons
per minute of water annually and large
scale facilities is over 20 megawws or
using more than 50 gallons per minute of
water annually. So, with data centers,
it's always a balance between water use
and energy use. It's possible that a
facility by choosing a more uh efficient
on-site water uh cooling mechanism that
they're actually increasing their energy
usage which may actually be increasing
their uh larger water footprint um and
vice versa. So there is no perfect data
center design where they use no water
and no electricity. It's always a
balance to meet those cooling needs. Um,
and Lind County knew that and that's why
they use this definition of either we
know you're using a lot of energy or we
know that you're using a lot of water.
Um, so we're using both criteria.
St. Louis, Missouri, they created three
different categories for data centers. A
micro facility less than five megawws,
standard 5 to 30 megawatts, and major
over 30 megawws.
Um, in general, communities can also
require or encourage community benefit
agreements. Lynn County and St. Lewis
both did this. Uh, and they use
different terms for it, but they do the
same thing. Uh, you can require or
encourage impact studies and regular
monitoring of impacts if that facility
is built. Um, in Lyn County, Iowa, they
require a water study to assess the
impacts of a facility on their local
watershed. Uh and they also require a
water use agreement where the facility
uh commits to regularly monitoring those
impacts, working with the local water
utility to figure out the right
reporting frequency, etc. St. Louis,
Missouri requires environmental and
economic impact reports prepared by a
third party um and requires annual
reports on noise, heat impacts, and
renewable energy use.
on electricity specifically. Communities
can also encourage or require energy
efficiency. St. Louis, Missouri is a
very progressive uh ordinance and this
ordinance is not going to work for all
states. But I just like to explain kind
of the different levels that a a zoning
ordinance could incorporate. So St.
Louis, Missouri requires lead
certification as practicable. This is a
leading rating system for green building
design and construction. Um, and there
are several existing leadcertified data
centers across the country. Even if a
community does not make this
requirement, it can still be helpful for
a community to look through that
database and find the really good
examples of data center design so that
when a developer comes and they say,
"We're going to use this much
electricity or we're going to be this
size, but we can't implement these
energy efficiency measures." The
community can say, "Well, but we have
some of these other examples in the
Midwest. What is different about your
facility than our facility? Um,
communities can also require or I'm
sorry, St. Louis requires green roof,
cool roof, andor rooftop solar. Uh, they
require a power usage effectiveness of
1.35 or better. What this means is data
centers use this metric called power
usage effectiveness uh to measure energy
efficiency. What it means is how much of
our energy is being put towards the IT
equipment versus what's being wasted on
cooling um or other other uh parts of
operation. And so uh technically a power
usage effectiveness of 1.0 would be the
best possible. That means all the
electricity is going just to that IT
infrastructure and none is being wasted
on cooling or other uh operations.
Um, as an example of this, Google
reports a fleetwide power usage
effectiveness of 1.09,
um, which is pretty good, uh, compared
to some of the other developers. Um, and
then communities can encourage or
require clean energy use. So, Lynn
County does this just by simply allowing
on-site renewables and storage as an
accessory use. You don't want to ask the
facility, hey, are you considering uh
using on-site renewables? but you don't
actually allow in your zoning code for
them to do so. Uh and St. Louis,
Missouri, they have again a very
ambitious requirement which is to
require phase renewable energy use
through either on-site renewables and
storage, renewable energy credits and or
utility programs. So essentially within
10 years time that facility that gets
built in St. Louis has to be 100%
renewable energy powered. that is quite
ambitious and that does not work for all
communities due to state context which
I'll get into a little bit but these are
just some of the examples of what
communities are doing uh to try to shape
data center development.
Um oh okay last few things here
establishing backup generator
requirements and limiting their use. So,
um requiring backup gener gen generators
to meet EPA tier 4 emissions or
equivalent standards. Um and asking
about or limiting when backup generators
will be used. So, ensuring that data
centers are really only using those
backup generators in emergency
situations and not say to power their
facilities as they wait for uh approvals
on generation resources that they need
to power their facilities.
Um, and then for if you're going to
require community benefit agreements,
here are just some examples of what
could be in those community benefit
agreements on energy. Um, data centers
can offset offset electricity use
through home energy upgrade investment.
So, a data center could say, "Okay,
we're going to invest in residents in
this area to adopt rooftop solar or to
um implement energy efficiency
upgrades." And this was something that
actually a New Jersey law um just opened
up allowing data centers to pay for home
energy upgrades. Um they can establish a
clean energy fund. The city of
Lancaster, Pennsylvania has a community
benefits agreement where they establish
this this kind of fund uh to uh target
investment in their community for clean
energy.
Um how am I doing on time?
Okay. So, since I did not get into water
with the zoning, I did want to just give
an example of the types of questions
that a local government could ask a
developer to get a sense of how
sustainable the water usage is for that
facility. Um, so communities can ask
what is the projected on-site and
off-site water usage of the facility?
What is the water usage effectiveness
and water usage impact of the facility?
And this gets at the same thing that I
was talking about with power usage
effectiveness. So, how much water how
efficient is your system for cooling
your facility if you're using on-site
water? Uh, is the developer willing to
fund an impact study to assess watershed
impacts? Are there any water
conservation measures planned? Is the
cooling system designed to utilize the
community surrounding climate? You
really want to make sure that if uh say
Meta is proposing a facility here in
Wisconsin, they're not using the exact
same cooling system that they're using
in Arizona. Um because very different
climates and they may be able to really
leverage the climate here. Um what is
the water source for the development?
Will any private on-site wells be built
as part of the project? How will the
developer coordinate with the local
water utility to mitigate impacts? Will
the developer use uh chemicals or
additives for cooling and will those be
discharged? Is there a risk of
discharging a concentration of existing
public water contaminants?
Um
yeah. Uh considerations when communities
are updating their zoning rules or are
considering what they're going to ask in
development review. Number one is
alignment with state policy. State law
shapes local government's authorities.
It states what local government's taxing
authorities are. It shapes um uh states
may have preeemptions on local
government authority that may uh really
impact what they can put in their zoning
ordinance depending on what the state uh
permitting authorities are. So what's
the DNR's role? Um what is economic
development's role? uh that can really
impact what the local government can do
so that they're not conflicting with uh
air quality permits that uh the
developer is already already going to
have to get at the state level. An
example of this is here in Wisconsin,
local governments cannot set stricter
building codes than the state. And this
can make it very challenging for local
governments to do anything may be viewed
as trying to set more strict energy uh
requirements than the state. And so some
of those things that I had uh provided,
examples that St. Louis has in their
zoning ordinance. Some of those things
are just not going to be feasible for
communities here in Wisconsin because
there's just different authorities here.
Um, a second consideration is really
ensuring that there's a clear legal
basis for local decisionmaking. So, data
center requirements should align with
the local comprehensive plan or other
local plans. Um, data centers should not
be unfairly regulated than other
industrial or warehouse uses. So, I've
started to see some examples in proposed
zoning ordinances where it seems the
community is holding data center
developers to a different standard than
other land uses and that's uh going to
cause legal challenges. Um, and then
lastly, ensuring that the permit denials
clearly tie back to the ordinance or
local authorities. So an example of this
is uh in Saline Township, Michigan. Uh
Saline Township board uh rejected a
proposal for reszoning for a data center
development. The developer sued the
township uh and that resulted in a
settlement where now the facility will
be built in the community. The community
got significant community benefits as a
part of that settlement. But it's very
important that local governments are not
just rejecting proposals um with no
reason. They really have to be able to
show go back to their zoning ordinance
or go back to their plan on why the
permit was denied. Lastly is
jurisdictional boundaries. Um a lot of
community members are very concerned
about electric rates and electric
infrastructure.
This gets into a jurisdictional issue.
Local governments do not regulate
electric rates. They do not regulate
energy infrastructure in a lot of uh
ways. So, it's unclear whether local
governments can really deny a permit
based on concerns about energy
infrastructure and cost. Um, but it's
it's unclear. I mean, communities have
been asking in development reviews
before if a project is going to affect
consumer rates. it just if that's the
only reason that could potentially cause
challenges because it's not necessarily
the local government's jurisdiction.
Continuing challenges, access to
information. Um data center developers
may use non-disclosure agreements. Uh
third party companies uh may be used to
prospect sites so the actual developer
is obscured. Um energy use or water use
or some of these other things that
communities may be interested in. the
developer may say this is trade secret.
Another challenge is lawsuits. So, I had
mentioned the Saline Township example.
I've been talking a lot about St.
Louis's uh data center ordinance.
There's a data center developer that
recently sued the city over their
renewable energy requirement. Um so,
we'll see how that plays out. Land
annexations are a challenge. So, if a
data center developer doesn't like the
policies of a community, are they just
going to hop over to the neighboring
jurisdiction and try to annex that land
into that jurisdiction? This is what
happened in Lynn County, Iowa. Um,
Google uh decided to propose to annex
their project into the city of PO.
Actually, this kind of played out in an
interesting way because the residents of
PO were still very uh concerned about
that project and the city of PO ended up
passing very similar requirements to
what Lynn County had uh passed and now
Lynn County has a moratorium on data
center development and it's up in the
air what's going to happen with the
proposal. So,
you know, on the one hand, somebody
could look at the developer deciding to
annex the land and say, well, if Lynn
County hadn't set such strict uh
regulations, then maybe we could have
got some community benefits here. But
also, Lynn County really set the stage
and the imprecented for what a community
could do and pay followed suit. Lastly
is technical expertise. So it takes
significant expertise and careful
evaluation to determine what are the
potential benefits, what are the
potential negative impacts of this
facility. As an example, if a community
is looking at expected revenue from a
data center development, they also have
to weigh that against potential
infrastructure costs, revenue loss if
the planned development is scaled back
or machinery and equipment is not
replaced as planned. Uh, and the reason
that I say that is because in Virginia,
the way that a lot of those communities
have gotten a lot of tax benefits is by
taxing the machinery and equipment that
these developers are replacing almost
every 5 years. And so
it's very important that uh say that
developers start to be able to create
more efficient data centers. Okay. Well,
if the community was really banking on
that future revenue, they that may be a
challenge. So, it's just it requires a
lot of expertise to really look at the
long-term economic benefits against
potential losses.
Oh. Oh, I skipped our some solutions.
I'm so sorry.
We'll have to go no slide here. But I
just wanted to say that on some of those
continuing challenges on use of
non-disclosure agreements and um on the
technical expertise questions and on the
lawsuit questions, there are a few
potential uh opportunities. Number one
is community should really track
industry and policy trends. Um for
example, Microsoft is no longer using
non-disclosure agreements. Um secondly,
uh thank you. Secondly, a Dayne County
judge just ruled that energy use is not
a trade secret after a public service
commission denied records request uh on
the meta facility in Beaver Dam. So,
these are important things to follow
because then it's easier when a
developer comes to town to say, well,
this really big company is not using
non-disclosure agreements or this judge
recently said this isn't a trade secret.
Establishing some standard practices.
So, in Detroit, Michigan, they have a
community benefit ordinance that applies
to uh all high-value projects um that
says that projects that are going to
create a certain amount of value for the
community, the developer has to involve
impact area residents and those
residents form an advisory committee and
they are part of the negotiation
process. And that is really important
because it exists not just for potential
data centers, but all kinds of
large-scale projects. And there's a
really clear procedure there. Uh Big
Rapids Township, Michigan, they recently
passed a non-disclosure agreement policy
prohibiting elected officials and staff
from signing NDAs for developments of
public interest. Um and then lastly,
communities can coordinate with
neighboring jurisdictions to try to
avoid that land annexation issue so that
communities are really working together.
Uh an example of this is in Dayne
County. They uh put together an advisory
committee that includes staff and
officials at the county level and within
their uh towns and villages within their
jurisdiction uh and members of the
public so that they can really work to
establish shared understanding of data
center impacts. So it's basically a
meeting like this much smaller but a
meeting like this amongst several
neighboring jurisdictions so that they
can hopefully agree on some uh shared
impacts and what they want to do going
forward.
And that's all.
>> Thank you very much. We appreciate your
presentation, all the information you
shared. We're gonna take just a minute
to collect questions. If you guys want
to bring questions forward that you have
written down and then we are going to
start to ask those questions.
Just a second.
Get started here.
Okay, we're going to start with um a
couple of infrastructure related
questions. Um and obviously
these don't fall within your scope of
feel free to just let us know that
we ask. Do any other states regional
advisory boards to help local
communities
entities sorry to help local entities
with advice but not local
it's a good idea um I can't think of an
example there are definitely
this is not quite answering your
question but there are definitely states
that have done a
more I don't want to say better job, but
I'll just say it. They they've done a
better job of being very clear about
what their state authorities are around
data center development. So Minnesota,
for example, has put together this
Minnesota business first stop uh thing
where they talk about these are all the
different state agencies that have
authority over data center development
and here's how they work together. I do
think that has been very helpful for
local governments to just understand
okay here's what the state is doing and
here's what I can do. Um so that is one
example in terms of a regional group
that is trying to support localities. I
can't think of one off the top of my
head.
Thank you for that. Um
how long from the time a data center is
built and open to when it becomes
obsolete we have any frame of reference
for that?
>> Um
we do not I mean we do not know how
data center development is going to
unfold. I think
is it likely that we just won't have
data centers anymore? Probably not. uh
will it maybe not scale up to the degree
that we're hearing it's going to scale
up? That is definitely a possibility. Um
and is it possible that a facility being
proposed in your community will go out
of business? Of course. Um
there are some local governments have
started including in their zoning
ordinances a requirement for a
decommissioning plan. Um so that the
developer has to provide information on
if we no longer exist, what is the plan?
How will we return this site back to
either its original use or so that it
can be used by other uses?
>> Thank you.
Can you give us any sense of how much it
costs to decommission and dispose of the
building and the equipment what you were
sort of just referencing? Um are there
any plans that you're aware of currently
that?
>> I do not know. I once was on a webinar
and made a comment about how I would
like to look more into Virginia and some
of these states that have hosted data
centers for a long time to understand
how many have decommissioned and to your
question what is the cost of that
decommissioning and somebody had put in
the chat I live in Virginia and they are
all still here so um I don't know if we
have that manyam it's just too early
especially in these larger scale
facilities to really know how long it
will take or uh what the cost would be.
>> Can you um can you explain what lead
certification stands for, what it is, um
what it uh signifies?
>> I actually can't tell you what the
acronym for LEAD is. I should know this.
Um but LEAD is a uh green building
practice for construction, design,
planning. I'm sure there's a lead
facility in your community. There are
many different ways that uh a developer
can achieve lead status, whether it's
from uh energy efficiency upgrades or
not energy efficiency upgrades, but
creating a very energyefficient
facility. Um even I think like um when
lights automatically go on and off when
you leave a room. I mean that that those
are the types of things that get you to
your lead certification. on-site uh
green roofs or solar roofs uh
green building practices. So, how are
you uh disposing of the construction
materials? Are you recycling
construction materials? Um I I don't
know if these slides will be shared uh
but if you look up the US Green Building
Council lead for data centers, they go
through what is lead for data centers
and you can also look on their website
to see what lead is generally for other
types of buildings. um how do you
achieve lead for data centers uh etc.
>> Lead stands for leadership in energy and
environmental design.
>> Yeah. Um so thank you whoever wrote this
including the sources that you
believe
is that correct? Yeah,
>> do you have any information about how
electric?
>> No, it's way too early. I mean, that
facility,
it maybe just got built, but it might
even still be under construction. This
was just approved a few years ago. And
you
would not see.
Generally, we are not seeing these rate
increases yet. Even for some of the data
center development that we've started to
see, um while people are concerned about
their electricity rates and there have
been uh affordability concerns, the uh
the reason for that is actually more on
infrastructure costs, distribution
costs, transmission costs. um not
because of data center development. I
think all of the conversations about
that are more looking out into the
future of what is the potential impact
here, but we're not seeing rate
increases as a result of data center
development quite yet.
Also in Cedar Rapids, what's been the
biggest challenge that they have had in
maintaining consistent reliable
operations that data
there?
>> So the question is basically can Allant
power the facility reliably?
Alliance says that they can. Um so
yeah, I mean again it's too early to
know. um if there's any challenges
there. I would say if you are wanting to
see what are the types of impacts that
data centers might have on the utility
on the grid, you really need to be
looking in the Virginiaas and the
Californiaiforns and the Texas where
you've seen a lot of this development
for a while. There was recently an event
where um about two to three gigawatts of
uh I think about three gigawatts of data
center capacity
uh suddenly went offline uh from the
system. They didn't really go offline.
They just disconnected and used their
backup generators. Uh and this did cause
some
the grid is a balance. You always have
to maintain equal power to use. So for a
really big user like that in one area to
suddenly disconnect from the grid that
can have ramifications for the grid. We
have not had blackout events resulting
from something like that. Um but that
was a concern and some of the regional
entities that deal with electric grid
issues are looking at that event and
starting to talk about how do we update
our interconnection uh interconnection
requirements and operating requirements
to ensure that we're maintaining
reliable electricity with more and more
data center development on the system.
>> Can data centers use salt water um from
the ocean as opposed to fresh water?
>> I don't know. I I'm sure they could with
some kind of desalinization
process or maybe they can have salt as
part of the process. I don't know if
that would impact the cooling
uh capabilities.
>> Are you aware are you aware of any data
centers that are able to generate their
own water andor electricity fully?
Um,
no, but I think that we are going to see
more onsite generation associated with
data center development.
Um, you mentioned at the beginning that
I work with a group called the MYSO
cities and communities coalition. These
are local governments that engage with
their regional grid operator uh who's
called MYSO. MYSO uh sets rules and um
plans transmission projects. They do a
lot of different things to maintain
reliable and affordable electricity
across these 15 states across the
Midwest and the southern United States.
And um
they are starting to look at setting
rules because of that gap that I showed
you of how long it can take to build
certain generation resources or
transmission versus how quickly these
data centers want to get online. Um,
MYSO is currently considering rules to
uh basically speed up the process for
colllocated generation and data center
development so that they could get on
the grid more quickly. Um, so they
wouldn't technically be off-grid, but
they would be onsite and just connected
to the data center development. Um,
I don't know if that's like very
helpful, but I do think we're going to
see more on-site generation, though
we're not quite seeing yet data centers
that are fully powering themselves with
on-site generation.
There are examples like um uh XAI in I
think Memphis. Um this is one of Elon's
facilities that used 30 on-site natural
gas facilities. Um
that's very that's an anomaly, but he
they're still connected to the grid, but
that was a way for them to power really
quickly without waiting for uh grid
approvals is just using all this on-site
gas. But that's a temporary solution,
not a permanent one.
Lots of energy questions. Um, do data
center designs lend themselves to
concurrent solar energy collection
either currently or in the near future
that you're aware of?
Um, I don't know if the person who asked
this question wants to clarify
concurrent.
Does anybody who asked about the
concurrent solar energy use want to
clarify that?
>> Um, going given the proximity to Lake
Michigan, what are the prospects of a
data center
being
So,
>> so uh from my understanding what is uh
the the attraction for data centers to
come up to Wisconsin and be near Lake
Michigan is actually less to actually
use the water of Lake Michigan, but
because of the cooler climate here, um
the Port Washington facility is using a
closed loop cooling system and is not
going to use much on-site water. Now
there of course is the water usage
associated with the power generation but
I don't know how much the data center
developer is really thinking through
that part because that's just up to the
utility to figure out. Um so what is the
likelihood? I mean I did show this map
that uh illustrated
what the expectation is for Wisconsin is
not the same level of development in
Iowa or Illinois. Um and Iowa I mean
it's groundwater there. They're not it's
they're not being pulled to a large lake
there. They're likely being pulled to
Iowa because there's a lot of wind
there, cheap energy costs, um and maybe
a few other reasons that, you know, I
don't want to get into the developer's
head on why they're going where they're
going, but how likely a developer will
come to Shboen, I don't know.
>> So, this isn't a question for you per
se, but it is a question I wanted to
read. How this question is how does how
does the city of Shboen partner with
Shabar Shboen County regarding zoning?
And the short answer is that we do not.
We are separate municipal entities that
have our own zoning processes and zoning
codes. Um some of you who are active on
social media may have seen that um there
are certain members of our community who
are encouraging um other cities within
the county, other townships within the
county uh to put moratoriums
um in place or to examine their own
zoning um because we don't the Shbboen
County um can't control zoning for all
municipalities. So it's really
municipality by municipality. So, if you
have friends out there in Shabboan
County and you're concerned about this
topic, um I would reach out to them
about what their local municipality is
doing on this front.
>> You had mentioned um you talked about
the comprehensive plan um process. You
talked about um how zoning plays into
that. So, this question is related to
that. What's the difference between
zoning and a local comprehensive plan?
Um, which one would Shboan use to
require new businesses to use on-site
renewable and/or zero emission energy?
>> Yeah. So, the comprehensive plan is the
guiding it is the guiding force behind
what local a local government does. So,
it is meant to be the rationale for why
communities are making decisions around
developments and it should inform a
community zoning code. A community does
not require things in its comprehensive
plan but simply states what are our
goals and objectives for economic
development, the environment, housing.
Um and then those objectives should be
reflected in the zoning ordinance. Uh I
should clarify that while I did provide
St. Louis, Missouri as an example, there
are certain things that St. Louis did
that I do not think that a city in
Wisconsin can do. Um but there may be
other opportunities. So local
governments um do not just have to
require. They can incentivize developers
to do certain things by maybe uh saying
uh well maybe you get a different
setback requirement or a density bonus
or some like uh in in commercial uh
buildings sometimes communities will say
you can build one story higher if you do
this thing. Um, and that's a way to
incentivize certain types of development
without maybe requiring it. Um, so if
you were to make some kind of
requirement, it would be in a zoning
ordinance, but it's not necessarily the
case that Shabboan should require
something.
And on the same note regarding
comprehensive plan and zoning, um many
of you may be aware of this, but part of
the reason that we have this engagement
series um going on right now is that the
comprehensive plan is
supposed to inform zoning and that is
currently in progress and nearing its
completion at this point in time. You
can look online to find the current
draft of the comprehensive plan and
review that. Um, our planning director,
Taylor, is in the back of the room if
you guys haven't met her before. And,
um, that is a major project that her
team has been working on along with
other city staff for some time. We want
that to be in place before we finalize
zoning. And zoning's, I would say, not
maybe the next, but it is another big
initiative that's coming once the
comprehensive plan is in place um, in
its updated version.
question says it sounded as if
communities cannot just refuse to have a
data center because they don't want it.
Is that true?
>> Yeah, I think you know I've actually
been grappling with this question
because there are definitely examples
where communities have just long-term
moratoriums on say wind development or
renewable development. So communities
have set long-term moratoriums on
certain types of uses. Um,
but local governments really do need to
have clear legal justification for the
decisions that they're making. Going
back to the comprehensive plan, to the
zoning ordinance, to the development
review. Um, I I so local No, I would say
local governments cannot arbitrarily
refuse something just because they think
they don't like it. I mean there has to
be clear illustration of what the
impacts are going to be on the community
and the local government should really
set uh clear standards for development.
>> Thank you. Um we wanted to see if you
could elaborate on the motion of state
preeemption um or you know can state
limit local policies that are set in
place?
>> Um well they certainly do. Um there are
um preeemptions not just here in
Wisconsin but across the country. I work
with a lot of different communities who
will think oh like we can't do this
because we're in Wisconsin. We can't do
this because we're in Iowa. And while
there are differences among states, a
lot of states have very similar
preeemptions. So um I don't want to give
that impression that other states don't
have similar preeemptions. Uh that is
definitely a legal planning question.
Um, and you could probably have a whole
talk at the American Planning
Association uh conference on that topic.
Um, so the state can preempt things and
they do. Those things are challenged all
the time. Yeah.
To your knowledge, are there any near
future alternative on-site options that
would be um energy options
usages that
options? I'm I'm trying to phrase this
differently. Uh basically, are there any
options data centers are exploring to
have their onsite onsite energy
generation such as micronuclear?
>> Um yes, micro nuclear is something that
is discussed a lot. I will say battery
storage is a big one and that you really
are starting to see data centers
implementing uh on-site battery storage
or trying to figure out if they can um
just because of the scale required of
solar and wind
having enough solar and wind to power a
one gawatt data center on site is not
likely. Uh but storage can definitely
play a really big role on site. Uh, and
there are other uh, options. So maybe a
data center isn't going to use on-site
generation for all of its needs. Um, but
they can also use um, they're called
virtual power plants. So essentially,
how do I explain this in like five
minutes? So or in 5 seconds. Okay. So,
basically if you have roof rooftop
solar, uh you are producing a little bit
of energy for your household and maybe
you are selling a little bit of ext
excess electricity when you're not using
it back to your utility. There's also an
opportunity to aggregate a ton of
different houses with rooftop solar to
create kind of a large power plant from
all of the excess electricity that you
might be generating. There might be
opportunities for data centers to enter
into agreements with their electric
utility to uh use generation from
virtual power plants or to work with
residents directly. Um so that's another
potential opportunity uh on site
can not on site but you know what I mean
not using traditional uh power power
generation.
Can you tell us a little bit more about
your recommendations or insights that
you have about the community benefit
agreements that you had referenced?
>> Yeah, so um this is a really good
question because there are a lot of
organizations and researchers that are
working on this issue because there are
a few challenges with community benefit
agreements. Number one is different
states have different requirements or uh
rules around what local governments can
uh do with community benefit agreements.
So, uh, not all local governments are
authorized to even use comm community
enter into community benefit agreements.
So, that's number one is it's very
important to understand what is your
state context. Uh, I do not know of any
preeemptions in Wisconsin against
community benefit agreements, but I do
think this is being discussed amongst
some local governments in the state of
what they can really do. The second is
enforcement. There are a lot of
community benefit agreements associated
with energy projects across the country.
Um, if you want to look at these, go to
World Resources Institute. They have a
really nice database of community
benefit frameworks for all different
kinds of energy projects, mining
facilities, solar facilities, wind, and
they're doing more work on data centers.
And the challenge with a lot of those
agreements in that database is lack of
enforcement mechanisms or vague
language. So if a community says um hey
developer will you give it your best
effort to uh hire a 100 local jobs what
is a data center developer's best effort
and what are your mechanisms to
challenge the developer if they don't
make good on that promise. So strong and
clear enforcement mechanisms and uh guar
you know commitments are really
important. Uh also it's very important
that the community is involved uh in
that process. So in Port Washington for
example, they didn't have a traditional
community benefit agreement but the
developer is paying for a lot of uh the
water utilities infrastructure not just
for its project but for other needs for
the water utility.
the community was still very opposed to
that development either because they
weren't aware that I mean m whether if
you were to ask a community member they
might either not know that those
investments were being made or that may
not be good enough for the community and
they may seek other benefits as a part
of that uh development. So it's very
important that the community is
involved. Um
yeah,
>> you had referenced Dane County a couple
of times in your um presentation. Um and
can you talk to us about any other
Wisconsin communities that you feel have
which I'm not sure if you know this, but
we do have a moratorium in place
currently for 12 months, which we could
extend um to 18. But beyond the
moratoriums that you mentioned and some
of the policies within Dayne County, are
there other communities that you feel um
whether it's through proactive zoning or
other types of regulations are really um
taking those proactive measures here
within the state. Um Lacrosse County
also has a similar initiative as Dne
County um to bring together multiple
jurisdictions to really understand data
center impacts. Um,
I know there are a few zoning ordinances
in development that I can't really talk
about because they're in development and
they're not public. So, there are local
governments that are working on this
issue that I think is very promising.
Um,
and a lot of local governments
participate in something called the
Wisconsin Local Government Climate
Coalition.
um which is a really great way for local
governments to understand, okay, what
are my peer communities doing? Um so
that's just another thing I want to
throw out there that there are a lot of
communities that are actively trying to
understand this issue so that they're
not just passing a zoning ordinance that
they're going to want to redo uh in a
year's time and are really feeling good
about the requirements that they're
putting in place.
I'm trying to phrase this within maybe
your frame of reference or even just
your opinion. Um,
are there communities that are
considering or um
looking to face challenges around
potential uh data centers being
potential security targets? Um, is there
anything within your frame of reference
that you could share in terms of how
communities are acting to data centers
being potential targets?
That is a really good question. Uh I
don't have an example. It doesn't mean
that it's not a part of the community
zoning code and I just missed it because
it wasn't necessarily what I was looking
for. Um
you know I have been attending some of
Dne County's advisory committee meetings
just to kind of watch and learn and see
what the discussions are like. and they
had somebody from fire and safety just
talking about the fire and safety
considerations for data center
development and they were talking about
how you know if there was a fire at a
data center facility that would be bad
because there's a lot of technology and
IT equipment in that facility that you
do not want to see what would be
released into the air if you were to
light that on fire just like you don't
want to light your phone on fire or
other technology and I had thought Oh
man, I just wonder
I just I just I wonder if everybody
understands that because data center
developments are controversial
facilities and
that is a possibility that you could see
something like that. The question might
have been more about cyber security and
that I don't know if local governments
are thinking about at all. data center
developers themselves, whether the local
government is putting requirements on
them or not, data centers have
significant security surrounding their
facilities. I mean, they are fencing the
facilities. In fact, what this um fire
chief had talked about in the
conversation was about being able to
access the facility in the case of a
fire because it might be challenging to
do so. Um, they were not concerned about
being able to do that. It just meant
proactive planning with the development.
But I I will just say data center
developers do have significant security.
Um it doesn't mean that local government
shouldn't also be thinking about it. I
just don't know if any are.
>> Did anyone have questions they've not
yet submitted?
Was it related to energy usage or there
there are some questions that are well
outside the frame of reference for the
speaker that purposely were not asked
because they are well outside the frame
of reference. There are questions that
we've said at the um end of each
presentation that we're holding back for
potentially the next presentation
because it would be more relevant to
that. Um so that's a consideration. Um
duplication of questions we're
combining. So, um, if you have a
question that you haven't submitted,
please write it down so that we
consistently have them recorded because
we're also saving all the questions that
have been submitted
>> with the community benefit agreement
database. That one,
the one with the community benefit
agreement database, it's called World
Resources Institute.
Yes.
And uh that database is really big. So
if you want some to really focus on, I
would look at the Stillwater
mining agreement. Um that agreement has
very strong enforcement mechanisms and
has been in place since 2000. Uh and
might have really interesting lessons
for communities when they're thinking
about data center community benefit
agreements.
So the US has this I'm just gonna read
this. The US has 3,960 data centers.
Other countries a few hundred per
country. China has nine, Russia has 200,
Japan has 10. Um is this good or bad for
the US in terms of that level of
technology? Assuming these numbers are
correct.
Uh I really can't speak to whether this
is beneficial for the US. Um my goal
it's very challenging to separate
artificial intelligence from data center
developments. Of course, I do feel like
for my research and to best support
local governments, I try to really focus
on just what are the potential impacts
of data center development and not on
the side of is artificial intelligence
good or bad for the United States. Is
this type of investment good for the
United States? Because it just it's
important, I think, for local
governments to try their best to
separate those two issues while also
recognizing, of course, they are tied in
people's minds. Um but local governments
also have their own legal authorities to
contend with. So I don't have a great
answer for that. Um yeah,
thank you. In your presentation you
defined collocation and hypers scale
data centers. Uh have communities
implemented similar definitions in their
zoning code specific to collocation and
hypers scale and would defining those be
useful?
>> That's a really good question. Um I what
I appreciate about the Lynn County Iowa
ordinance and the St. Louis Missouri
ordinance that I shared is they don't
use those terms. They define facilities
just by their electricity usage and or
size and or water usage. I think this is
helpful because I have seen some
ordinances define hypers scale
facilities which I think can be a little
confusing if you have a large scale
collocation facility that has the same
impacts as a hypers scale facility. Um,
it's not necessarily a bad thing to
define those things in your code, but I
think what's really important is simply
that you're defining them by size or or
energy usage. And the actual term that
you use to describe it is maybe not so
important. And it it doesn't really
matter if it's a collocation facility or
for one customer or um or something
else. It's really about how big is the
facility, how much electricity does it
use, what kind of impacts is it going to
have for the community?
Thank you.
With the possible increase in more and
larger data centers coming to the US in
future,
do you know if
our grid personnel is how this is um
phrased or people responsible for our
energy grid um have plans so that both
heavy duty industry and data centers
have enough power
So there are several different entities
that play a role in shaping the electric
grid. You have your electric utility, of
course, you have your utility regulator.
If you have an investor-owned utility or
in Wisconsin, a municipal utility, they
are regulated by the state public
service commission. Um or if you have a
a cooperative utility, they are
regulated by their own board. Um and
then the state legislature obviously
plays a little bit of a role because
they can make directives that influence
what the public service commission does
around data center development. Uh and
then you have this regional grid
operator that I mentioned uh MYSO they
are responsible for basically when
electricity leaves state lines. So they
are focused on the transmission
infrastructure um interconnection to
that largecale electric grid um where
your state public service commission is
focused on the local distribution grid
um and then that regional entity is
regulated by the federal energy
regulatory commission.
The reason that I bring up all of those
entities is because they are all doing
all kinds of things to figure out uh how
do we protect consumer rates? How do we
uh ensure
sometimes that
basically
MYSO the regional grid operator their
members are the electric utilities. So
they their role is to make is they are
beholden to their members. So they have
an interest in how do we get these
generation resources online quickly
actually to facilitate data center
development.
um because utilities are trying to get
these generation resources online but
the regional grid operator has to look
at do we have enough transmission
capacity uh to accommodate that. Is it
going to cause any impacts to the wider
electric grid? So
this question about do do they have a
plan is complex because I would say
there are a lot of different little
plans going on and a lot of different
rulemakings going on at all different
kinds of levels. Uh
yeah, I mean that's that's the most
challenging thing is it's not as simple
as going to the state public service
commission and being like what's your
plan? It's it's understanding okay how
are we protecting consumer rights first
of all. Second of all, how are we
ensuring that there's going to be enough
generation capacity online? Or should
large energy users have to go through
some kind of interconnection queue and
process, which they do, but should they
have more thorough rules before they can
connect to the electric grid? There's a
lot of different entities that you have
to speak to to um really get get to the
answer, but I would say the the answer
is there are a lot of different people
working on a lot of different things.
And it's kind of a
not a battle of who wins, but it's a
it's a conversation amongst community
organizers that go to public service
commissions, amongst electric utilities
that go to the public service
commission, the public service
commission themselves, the state
legislature that makes directives to the
public service commission. um there's a
lot of players at play uh that are
influencing what what happens
>> and I think you've said and we've also
heard in um previous presentations that
engagement at the state level is really
important um on this issue that we can
only control so much locally and
obviously we want to put as many
controls in place that we can um but
that's all of our questions we
appreciate your time tonight thank you
very much um as I had said any questions
that were not asked. They were
specifically not relevant to our speaker
or to our topic tonight. We do have
questions that we're holding for the
next presentation um which will happen
next week. We invite you guys all back
um next Wednesday. We have a
representative from Ellers who's going
to be here and really be talking about
financial impacts within the community
when data centers come to town. Um so we
hope we see many if not all of you guys
there. Um bring your friends with you.
More the marrier. Um, and I think that's
it for this evening. Thank you all
again. Thank you so much, Britney. We
appreciate your time.