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Wednesday, Jul 22, 2026

Is Wisconsin state government spending $2 billion on data centers?

Tom Kertscher / Wisconsin Watch, Wisconsin Watch
no

Wisconsin state government is not spending $2 billion on data centers.

The campaign website of Democratic gubernatorial candidate Francesca Hong stated that Wisconsin is “spending over $2 billion in public money” on data centers “this year.”  

The statement linked to a Wisconsin Watch news article, which is based on a Legislative Fiscal Bureau memo.

The article made clear that the $2 billion is forgone revenue, not an expenditure. The LFB estimated the state will forgo $2 billion in revenue over a period of years because data centers are exempt from paying state sales tax.

It’s unclear whether the three artificial intelligence data centers under construction in Wisconsin would have been built without the tax incentive, which most states offer.

Some states are rolling back the exemptions or imposing requirements for receiving them.

Texas’ Republican governor has called for elimination; Ohio’s GOP governor and Arizona’s 2027 budget paused exemptions.

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Fact briefs are bite-sized, well-sourced explanations that offer clear "yes" or "no" answers to questions, confusions, and unsupported claims circulating online. They rely on publicly available data and documents, often from the original source. Fact briefs are written and published by newsrooms in the Gigafact network.

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