As data centers spring up across the state and country to support the demands of cloud computing, AI and digital infrastructure, a group of Wisconsin businesses are launching a new coalition to help position the state as not just a destination for data center developers, but a major player in the national data center economy.
The
Wisconsin Data Center Coalition (WIDCC), which is still in its early stages, has been quietly building its foundation over the last few months.
The coalition was borne out of observations that Wisconsin was not showcasing what it has to offer the data center industry as much as it should, founding members said.
For instance, at conferences hosted by the 7X24 Exchange, an organization focused on “always-on” digital infrastructure like data centers,
Jon Mariano, chief financial officer of Delafield-based
Evans Transportation and a founding member of WIDCC, said he and other business leaders noticed that representation from Wisconsin “wasn’t great.”
“It got us thinking, ‘How can we represent the state, not just our individual interest,’” Mariano said.
The data center industry is expected to see a significant boom over the next decade, and coalition organizers say now is the time for Wisconsin businesses to position themselves for long-term participation.
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Coleman Peiffer[/caption]
“There's a five-to-10-year period of this data center boom, I think,” said
Coleman Peiffer, senior business attraction manager for
Alliant Energy. “(Development of data centers is) going to keep going, but at some point, it’s going to slow down. We want to make sure we're not just riding the wave, but we're riding right in the barrel of the wave.”
Peiffer said the coalition’s goals are twofold: attracting data centers to Wisconsin and helping Wisconsin companies capture more of the economic opportunity they bring.
For attraction, Wisconsin is a good environment for data centers because the state has favorable tax policy and a climate with limited natural disasters and fewer days that data centers need to be cooled, according to Peiffer.
“…But we don't like the brag in Wisconsin,” Peiffer said. “Having a coalition to tell Wisconsin’s story and how great of a place it is for data centers can get more eyes on us. I think it’s a strength in numbers thing too. If we can rally enough people, enough businesses around this, the more we can get the attention of the data center industry.”
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Jon Mariano[/caption]
Peiffer and Mariano declined to share what other companies or organizations are part of the coalition, but said there’s been “strong interest” and they expect more of the coalition’s founding members to be finalized later this summer.
To get an idea of who might want to be a part of the coalition, Peiffer said to look at all of the materials and trades that go into building, operating and maintaining a data center.
“You're talking a lot of electrical wire, a lot of fiber optic, a lot of ethernet, a lot of fencing, security systems, a lot of cooling, specialized construction materials,” Peiffer said. “If you start to put those things together, you can start to get an idea of who might want to be a part of this. A lot of companies that stand to benefit aren't tech startups. They're some of our legacy manufacturers.
Already, Wisconsin-based Maysteel Industries
opened a new data center manufacturing facility in Germantown. This year, Racine-based Modine
reported record sales, largely driven by the company's data center business. Both companies were founded in the early 1900s.
“The coalition exists to create a platform of collaboration where leaders from across the industries can share knowledge, build relationships and align on how Wisconsin can grow its digital infrastructure in a way that drives real economic impact,” Mariano said. “Our goal isn't just to attract data centers, but to ensure benefits ripple across Wisconsin's economy.”
“The goal isn’t just to have Wisconsin companies helping build the data centers in Wisconsin, the goal is for Wisconsin to have a national footprint, where our companies can benefit from a data center in Arkansas or Louisiana,” Peiffer added.
