(The Center Square) – Wisconsin Gov. Tony Evers recently signed a bill to create an exception to the state’s tax incremental financing rules for data centers in Port Washington and Beaver Dam.
The bill, now 2025 Wisconsin Act 16, grants an exception to the state’s 12% cap on the amount of total municipal property value that can be included in TIF districts, as long as the new project costs are strictly related to certified data centers.
Under the exception, municipalities can use the future growth in property tax revenue generated within the district solely to cover data center-related costs, The Center Square previously reported.
Evers and lawmakers alike hope the act will incentivize companies to build data centers in both cities.
“Wisconsin’s tech industry is growing and bringing with it countless family-supporting jobs, economic development opportunities, and substantial capital investments in our local communities,” Evers said in a statement. “This bill will help these two communities compete for new data centers, bolster our local communities, and build upon our work to build a 21st-century workforce and economy.”
A planned data center in Port Washington is expected to be built and could open before the end of the year.
Additionally, Meta is discussing a nearly $1 billion data center in Beaver Dam, Bloomberg reported.
However, there are concerns that tax exemptions for data centers might not always benefit a community.
According to a report from Good Jobs First, at least 10 states are currently losing $100 million or more in taxes from data centers, The Center Square reported.
The Center Square also reported a poll by Libertas Network that showed a majority of U.S. voters oppose data centers being built in their community, and even more oppose the data centers if tax incentives are awarded to have them built.
However, Evers touted the act’s overwhelming bipartisan support in his statement, with the bill having passed the Wisconsin state Senate 28-3 and the Assembly 91-6.
• Elijah Guevara is an intern reporter and member of the 2025 Searle Freedom Trust Apprentice and Internship initiative.
