WEC Energy Group says it’s in talks with more data center developers

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The owner of Wisconsin’s largest utility is looking to welcome more data center megaprojects.

Scott Lauber, CEO and President of WEC Energy Group, said the company was in talks with potential data center developers after the Public Service Commission of Wisconsin approved special rates for large customers after an uptick in data center development. WEC Energy Group owns We Energies, the largest utility in the state, covering most of southeastern Wisconsin.

In an earnings call on May 5, Lauber said the company hoped to have another announcement in the third quarter of 2026.

The PSC turned down a proposal by We Energies that would split energy costs between customers and data center operators. A new rate proposal would have data center operators and developers foot the bill instead. The regulatory body is expected to make a final decision in the next few weeks.

Wisconsin is already home to several data center projects under construction, including Microsoft’s “Fairwater” facility in Mount Pleasant. Tech company officials said the project will go online ahead of schedule. The company bought 2,200 acres in the Interstate 94 corridor in Racine County, Lauber said.

In Port Washington, work continues on a facility developed by Vantage Data Centers for OpenAI and Oracle. The project is on 1,900 acres and the first phase of the data center project is planned for 670 acres. The first facility is expected to go online in late 2027, Lauber said.
WEC Energy Group expects a 3.9 gigawatt increase in the next five years after continued investment in both projects.

According to environmental group Clean Wisconsin, the projects in Mount Pleasant and Port Washington will require enough energy to power 4.3 million homes. There are 2.8 million homes in the state of Wisconsin.

WEC Energy Group also has its eyes on other projects such as Milwaukee Tool’s planned research and development facility expansion in Menomonee Falls and gas engine maker INNIO’s expansion in Waukesha.

The utility is building natural gas facilities in Oak Creek in Milwaukee County and in Paris in Kenosha County. The Paris project involves seven reciprocating internal combustion engines generating 128 megawatts of electricity. The coal-fired power plant in Oak Creek will be converted to use natural gas and generate 1,100 MW.

Both projects are expected to be completed in late 2027. Two coal-fired units will continue to operate in Oak Creek through 2027.