Experts warn hyperscale data centers could sharply raise utility costs and require major new infrastructure

Corey Singletary, director of regulatory affairs for the Citizens Utility Board of Wisconsin, told the committee that the arrival of very large "hyperscale" data centers can rapidly change a utility’s resource needs and rate structure. "The QTS project had it gone through, plus the metadata center in Dane County would have together, at the end of the day, added up to about 40% of what Alliant Energy's load would have been once those projects were fully up and running," he said.

Singletary explained the regulatory framework that governs investor‑owned utilities, citing the "just and reasonable" standard (Wis. Stat. 196.03) and the commission’s obligation to rely on evidence filed in the regulatory record. He said utilities have an "obligation to serve" large customers, which can force them to build generation, transmission and distribution capacity earlier than otherwise planned and create risk if the new customer's usage does not materialize.

Those investments can produce stranded assets or require cost‑shifts to other customers if contracts or tariffs do not allocate costs correctly, Singletary said. He described mitigation tools used in Wisconsin, including minimum billing demands, long initial contract terms (he cited 15‑year minimums), financial security such as letters of credit, and bespoke tariff constructs that require large customers to subscribe to dedicated resources.

The committee asked follow‑up questions on tariff design, contract enforceability and the timeline for rate filings; Singletary said utilities are actively proposing and seeking approval of data‑center‑specific rates and that many of those cases should be resolved in the coming year.