Power demand projected to jump 40% in six years amid data center boom

Wisconsin’s peak power demand is projected to jump 40% over the next six years, largely driven by the massive data centers being built in the state. 

That’s according to a draft of the latest biennial Strategic Energy Assessment released last week by the state Public Service Commission. The report, based on data provided by the utilities, shows peak demand will hit 20 gigawatts by 2032 – up from 14.2 GW this year. 

About 4.17 GW of that projected increase — making up 72% of the demand spike — is attributed to three hyperscale data center developments in Beaver Dam, Port Washington and Mount Pleasant, the last of which was recently brought online by tech giant Microsoft. They’re located within the service areas of Alliant Energy and WEC Energy Group. 

“These load forecasts illustrate the outsized impact data center development is anticipated to have on the energy landscape in Wisconsin in the coming years,” authors wrote. 

The latest estimate shows a marked increase from the last SEA report, which acknowledged the role of data centers in driving up energy demand but forecasted a more modest increase. Utilities in 2024 projected peak electric demand to decline by about 5% from 2023 to 2024, followed by a 14.8% increase in demand through 2030. 

Meanwhile, utilities are also planning substantially more natural gas generation to keep up with projected demand compared to the previous projections. The latest SEA shows electric providers plan 5,400 megawatts of new natural gas capacity or upgrades to existing natural gas facilities by 2032 — more than double the 2,500 MW planned by 2030 in the previous report. 

See the report. 

See earlier SEA reports.