Data centers are top of mind for key Wisconsin industry leaders, as the new developments make waves in construction, manufacturing and other sectors.
The topic featured prominently in the Wisconsin Bankers Association’s 2026 Wisconsin Economic Report, which includes perspectives from the heads of other business groups in the state.
That includes Wisconsin Manufacturers & Commerce President and CEO Kurt Bauer, who argued building new data centers is both “a good deal for Wisconsin” and necessary for U.S. competitiveness.
“Data centers built elsewhere also provide a major injection into the local property tax base and operators have proven to be good corporate citizens,” he wrote.
The proposed data center projects are also expected to employ hundreds of employees once complete, ranging from engineers to IT technicians and other staff. That’s in addition to the thousands of construction jobs needed to build the massive projects, Bauer noted.
That construction impact was echoed by Robb Kahl, executive director of Construction Business Group, who says data centers have “emerged as a major growth engine” in Wisconsin and elsewhere. He noted the $3.3 billion data center project near Mount Pleasant broke ground in 2024, supporting thousands of union construction jobs.
“These projects also bring demand for supporting infrastructure like energy, water and sewer, fiber-optic networks, and transportation,” Kahl wrote. “That diversification should help cushion against slowdowns in any single market segment in 2026.”
Kahl is urging policymakers to “lean into” further data center development.
But challenges remain for data centers in Wisconsin, ranging from concerns about environmental impacts and related energy cost increases to local pushback leading to some projects getting cancelled, Bauer noted.
He argued water usage concerns are “overstated” as most projects will use closed-loop systems that require little water input. And he said reliable electricity is one of Wisconsin’s best selling points for the tech companies seeking to open data centers in the state.
“More infrastructure may be needed, but the data center boom will necessarily encourage important modernization of Wisconsin’s electrical grid by improving and expanding transmission lines and supporting new baseload generation, perhaps including the development of Wisconsin’s first new nuclear power plant since the 1970s,” Bauer wrote.
Meanwhile, former Wisconsin Technology Council President Tom Still said a balanced approach could help ensure energy demands are met amid the state’s data center boom.
He noted the state’s major utilities are “heavily regulated,” making it unlikely for proposals that shift costs to others or harm the environment to be accepted.
“Can enough electricity be generated to satisfy AI’s appetite as well as society’s overall power needs?” he wrote. “With a balanced approach engaging solar, wind, hydro, battery storage, natural gas and — eventually — a rebirth of nuclear power, the answer is a qualified ‘yes.’”
Other industry leader reports focus on trends in agriculture, grocery stores, homebuying and more. See the full economic report from WBA here.
