The Sierra Club, with the legal support of Midwest Environmental Advocates (MEA), achieved a major settlement with the Wisconsin Department of Natural Resources (DNR) regarding the permits given to Vantage for its data center in Port Washington. The DNR issued permits before creation of an Environmental Impact Statement (EIS) as required by law.
The settlement secured a commitment by the DNR to complete a broad statewide strategic analysis by January 2028 that will examine the environmental consequences of data centers, including water and energy resources, related infrastructure, air quality and climate effects, and the impacts on our economy and communities. In addition, the DNR will have to comply with the Wisconsin Environmental Policy Act for future projects. This is a huge victory for Wisconsinites and our environment.
The outcome addresses concerns over the potential impacts of AI data centers on local communities often unprepared to deal with Big Tech's proposals and claims of minimal impacts and great community benefits. This comprehensive analysis will provide communities and regulators with much-needed information by which to gauge the costs and benefits of data centers, and make Wisconsin a leader in evaluating data center impacts. Only a few other states are conducting a similar analysis.
Volatile Methane Gas and AI Data Centers
AI data centers are popping up all over Wisconsin and with them comes unprecedented amounts of water and energy use, changes to our landscapes, and impacts to our communities. According to the Public Service Commission (PSC), the majority of energy demand will be served by new methane gas plants (what the industry calls 'natural' gas) or upgrades to existing gas plants and will require new energy transmission lines across the state.
If AI data center energy demand is met predominantly by methane gas as planned -- doubling the amount of gas generation in the state -- consumers and businesses will be left exposed to unpredictable methane gas fuel costs and market fluctuations. In contrast, the cost of clean energy technologies such as wind, solar, and battery storage has steadily declined and is expected to continue falling as innovation, economies of scale, and deployment increase.
At the same time, growing climate commitments from governments, utilities, and businesses are driving policies that place greater financial pressure on fossil fuels through stricter emissions standards, carbon pricing, and other regulatory measures.
As these trends continue, methane gas infrastructure risks becoming more expensive to operate and maintain, with an added risk of gas plants becoming stranded assets. In contrast, clean energy offers greater price stability, lower long-term costs, and reduced exposure to future climate-related regulations.
These concerns underscore how important a statewide strategic analysis of AI data centers is for Wisconsin. Wisconsinites cannot afford to fuel Big Tech's data center rush with risky and volatile methane gas energy when there are cheaper, cleaner alternatives that also create more jobs.
What You Can Do
Fortunately, the settlement requires the DNR to provide opportunities for public engagement as part of the strategic analysis process. Public input will help inform how, where and under what conditions data centers should be developed in Wisconsin.
We also need our leaders to pause all new methane gas infrastructure for AI data centers until the strategic analysis is complete. A pause will ensure we are able to make informed, strategic decisions about Wisconsin’s energy future.
That's why it is so important for Wisconsinites everywhere to stay engaged. This is your opportunity to state your concerns and shape the energy and environmental landscape of the future.
The Sierra Club is committed to keeping you informed and engaged when opportunities to weigh in on the impacts of data centers and the energy needed to fuel them arises. With your continued support we can protect our state from the dangers of data centers and methane gas energy and protect our environment for future generations to enjoy.