I was a young college student in the early 1990s—way back in the 20th century—when I experienced a moment that changed the direction of my life.

One day, I stopped by my college computer science lab and picked up a couple of old-school floppy disks. I eagerly took them home, loaded the software onto my computer, and began experimenting. After several hours of trial and error, I finally heard the distinctive electronic squeal of my 14.4-kilobit modem establishing an analog connection with the university’s Internet system.

It was magical.

Suddenly, I could read information from around the world and communicate with people through online bulletin board systems. The Internet was still mysterious to most Americans, but for those of us fortunate enough to experience it, a new world was opening.

Then something happened that I will never forget.

On one of those bulletin board systems, someone in Moscow posted that tanks were rolling down his residential street. I thought it was odd, so I turned on CNN. That was when I learned that the attempted Soviet coup was underway and Boris Yeltsin was leading the resistance in Moscow.

Whoa! I had heard about it first on the Internet.

That was the moment I knew the Internet was going to change the world.

More than 30 years later, I am still celebrating an information technology career built upon that innovation. The Internet transformed how we communicate, conduct business, educate our children, receive entertainment, share ideas, and understand events unfolding around the world.

Today, we stand at another defining moment—and Wisconsin must decide whether it will help build the next economy or stand on the sidelines watching it pass us by.

We Have Heard the Skepticism Before

The Internet had plenty of naysayers during the 1990s. Some dismissed it as a fad. Others insisted it would never become useful to ordinary people. Many companies simply put their heads in the sand and ignored what was coming.

They believed the world would eventually return to normal.

It did not.

Companies such as Blockbuster learned this lesson the hard way. Its business model had once seemed secure, but the company failed to adapt quickly enough to the rise of digital media and on-demand entertainment. The technology did not wait for reluctant executives to become comfortable with it. Consumers moved forward, competitors innovated, and an industry leader disappeared.

Artificial intelligence, cloud computing, digital communications, and advanced data processing are producing a similar transformation today. Data centers are the physical infrastructure supporting that transformation.

Every online transaction, streaming service, digital medical record, artificial intelligence application, financial system, communications platform, and cloud-based business tool depends upon physical computers operating somewhere. Those computers require buildings, sophisticated cooling systems, reliable communications, and enormous amounts of dependable electricity.

The digital economy may appear to exist in the “cloud,” but the cloud must be built somewhere.

Why shouldn’t part of it be built here?

Wisconsin Has an Opportunity

Interest in data center development is growing across Wisconsin. That has generated reasonable questions: Can our electrical grid support these projects? Who will pay for the infrastructure they require? Will families and small businesses be forced to subsidize them? What will local communities receive in return?

Recent presentations from Xcel Energy and Dairyland Power Cooperative provided encouraging answers—but also made clear that the details matter.

Responsible data center development requires careful planning, long-term financial commitments, transparent public processes, dependable energy, and firm protections for existing customers.

If Wisconsin gets those things right, these projects could strengthen our tax base, modernize our electrical infrastructure, support new employment, and position our children and grandchildren to compete in the 21st-century economy.

Building a Reliable Energy Foundation

Xcel Energy has established a goal of delivering 100% carbon-free electricity by 2050. According to its presentation, approximately 69% of its electricity was already carbon-free by 2025, supported by nuclear, hydroelectric, solar, and other generation resources.

The company reports reducing carbon emissions by 62% since 2005 and plans to eliminate coal-fired generation by 2030. Its long-term strategy includes additional solar power, continued operation of nuclear plants, battery storage, natural gas backup generation, and emerging technologies such as hydrogen and small modular nuclear reactors.

This diversified approach is important because data centers and other major employers cannot operate on power that is available only when the sun shines or the wind blows. They require dependable electricity 24 hours a day, seven days a week.

Solar and wind can contribute to the overall energy portfolio, but nuclear power, natural gas, battery storage, transmission improvements, and demand-management programs will all have roles in maintaining a reliable grid.

Wisconsin should not allow political hysteria to stand in the way of practical energy solutions that the 21st Century Economy will need in order to be successful and prosperous. If we want the jobs and investment of the digital economy, we must be willing to build the dependable energy foundation that economy requires. And it can all be done in an open and honest fashion so there are no surprises and plenty of community input as we learn and grow through this exciting time in our history.

Data Centers Must Pay Their Own Way

One of the greatest concerns surrounding data centers is whether ordinary utility customers will be forced to pay for the infrastructure serving these enormous projects.

Xcel’s proposed large-load tariff is designed to prevent that.

Under the proposal, customers requiring 100 megawatts or more would undergo detailed studies examining distribution, transmission, and generation requirements. Those customers would be responsible for the full cost of connecting to the grid, along with the additional infrastructure and generation resources needed to serve them.

Large-load customers would also be required to sign contracts lasting at least 15 years, with automatic five-year extensions. These commitments are intended to ensure that utilities—and ultimately their existing customers—are not left paying for specialized infrastructure if a project is canceled or closes prematurely.

Xcel filed the proposed tariff on June 22, 2026. It will be reviewed through a public regulatory process offering opportunities for hearings, written comments, and stakeholder participation. A decision is expected in early 2027.

This is exactly the kind of structure Wisconsin needs: welcome the investment, but protect the ratepayer.

Potential Benefits for Customers and Communities

When properly structured, large-load development could benefit more than the companies operating the data centers.

Xcel estimates that every 1,000 megawatts of new development could potentially reduce rates for existing customers by approximately 1% to 2%. The associated economic activity could also generate between $120 million and $180 million in annual property-tax revenue. It's simple supply and demand economic theory: increase the supply and the prices will go down. Increase the demand with thousands of electric cars and a computer in every pocket without increasing the supply and the prices will continue to go up.

A proposed Google data center offers an example of how this model could work. Google has committed to funding approximately 1,900 megawatts of generation capacity, including wind, solar, and battery storage, while covering the infrastructure expenses associated with the project.

The development is also expected to produce substantial local revenue, including an estimated $24 million for schools and $20 million in property taxes.

Those figures demonstrate the scale of the opportunity, but the benefits will not happen automatically. Agreements must be carefully negotiated, clearly written, and enforceable.

Dairyland’s Cooperative Approach

Dairyland Power Cooperative offers another model for approaching this development.

Dairyland supplies wholesale electricity to 24 member cooperatives serving more than 800,000 consumers across approximately 44,000 square miles. Its rates are governed by a board representing those member cooperatives rather than by a traditional public utility commission.

Dairyland’s approach emphasizes smaller, phased developments that can demonstrate their viability before expanding. Many projects under consideration in its service territory begin at approximately 10 megawatts.

Developers must pay application fees and deposits for transmission and infrastructure studies. Required cost contributions must be made before construction begins, helping prevent those expenses from being shifted to existing cooperative members.

Dairyland has also signed a federal ratepayer-protection pledge affirming that the costs associated with data centers should be borne by the projects themselves.

While interest continues to grow, Dairyland reported that it does not currently have any signed data center contracts in La Crosse County. That means our region still has time to establish thoughtful policies before a major proposal arrives.

Our Grid Must Be Ready

Western Wisconsin already has substantial electrical infrastructure, but parts of the transmission system date back to the middle of the 20th century. Improvements will be needed to serve significant new demand reliably.

In many cases, the challenge is not simply generating more electricity. We must also build and modernize the electrical “highways” that move power from generating facilities to customers.

Each large development requires multiple layers of study to determine feasibility, cost, timing, and the location of necessary improvements. Depending upon the proposed site, new transmission infrastructure could extend from a few miles to more than 100 miles.

Meeting these needs will require cooperation among Xcel Energy, Dairyland Power Cooperative, neighboring utilities, local governments, state regulators, and the Midcontinent Independent System Operator, commonly known as MISO.

These investments should not be viewed only as expenses associated with individual data centers. If properly planned and financed, they can also strengthen the electrical system serving homes, farms, and businesses throughout our region.

Communities Must Set Expectations

Utilities can determine whether a project can be powered, but local governments must determine whether it is right for their communities.

Municipalities should establish clear policies before proposals arrive. Development agreements and community-benefit agreements can require companies to contribute toward roads, water systems, emergency services, and other public infrastructure affected by their projects.

Local leaders must also carefully consider land use, water consumption, noise, construction traffic, environmental effects, employment, tax revenue, and the consequences if a proposed project is delayed or abandoned.

Public engagement cannot be treated as an afterthought.

Pine Island, Minnesota, has been cited as an example of productive planning and community engagement. A failed proposal in DeForest, Wisconsin, illustrates the problems that can arise when communities lack established policies, clear expectations, and public trust.

We should learn from both examples.

Being open to innovation does not require us to accept every proposal, ignore every concern, or sign a bad agreement. It means establishing responsible rules and clearly defined boundaries so worthwhile projects can move forward while residents and taxpayers remain protected.

Someone’s Future Is Being Built Today

I sometimes think back to that young college student sitting in front of a home computer, listening to a 14.4 modem struggle to establish a connection.

I had no idea where that connection would eventually lead. I could not have predicted social media, smartphones, streaming video, cloud computing, remote employment, or artificial intelligence. But I knew I was witnessing the beginning of something that would change the world and I wanted to be part of the exciting innovations that I knew were just over the horizon.

Somewhere in Wisconsin today, another young student is looking at artificial intelligence, quantum computing architectures, robotics, small modular nuclear technology, or an innovation that many of us cannot yet imagine. That student may be looking forward to a lengthy career built upon the foundations we have the opportunity to create today.

Will that career be built here—or will our children and grandchildren simply leave Wisconsin to find it?

Data centers are not merely large buildings filled with computers. They are part of the infrastructure supporting the next generation of commerce, communication, medicine, research, education, manufacturing, and national security.

We must insist that developers pay their own way. We must protect existing ratepayers. We must demand transparency and meaningful benefits for host communities. We must build enough dependable energy to keep the system reliable.

But we must NOT hide from the future.

The naysayers of the 1990s were wrong about the Internet. The companies that refused to adapt were left behind. Wisconsin should not make the same mistake with the technologies and infrastructure of the 21st century.

Our children and grandchildren are counting on us to do this right.

Let’s embrace the opportunity, establish strong protections, modernize our energy system, and build a Wisconsin ready to prosper in the new digital economy.

Let’s not let that next young college student down.