Center for Research on the Wisconsin Economy reports on AI in Wisconsin

Wisconsin's place in the artificial intelligence buildout is looking bigger than just the data centers themselves. A new report from the Center for Research on the Wisconsin Economy (CROWE) at the University of Wisconsin-Madison says manufacturers in the state have already logged at least $1.6 billion in AI-related orders and backlog, suggesting the economic spillover is reaching suppliers well beyond the giant new campuses that house the computing load.

The study, entitled Winning the AI Race, argues that Wisconsin is already benefiting from the sector's expansion even as the debate over large hyperscale facilities intensifies. According to reporting on the paper, the broader announced pipeline totals $46 billion, with at least $36 billion already operating, under construction or committed.

The report also points to power as the main limiting factor. Researchers Junjie Guo and Ananth Seshadri say the state's electricity system will need significant new generation and transmission if the buildout continues at the current pace. A draft of Wisconsin's latest Strategic Energy Assessment, cited by Wisconsin Business and other state business outlets, projects peak demand rising 40% to more than 20 gigawatts by 2032 from 14.2 gigawatts this year, with three large data centers responsible for about 72% of the increase. That projection has sharpened the political and economic stakes around data center development in Wisconsin.

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In Menomonie, Mayor Randy Knaack halted a proposed $1.6 billion project in September 2025 after residents raised concerns about the promised benefits, including permanent employment and contractor work — pushback that echoes similar calls for a pause on data center growth in neighboring Minnesota. At the same time, business coverage in Milwaukee has shown that industrial suppliers are already seeing the upside, with firms such as engine manufacturer Regal Rexnord, and generator builder Generac winning orders tied to data center infrastructure even before the state's biggest projects come online.

The report authors say this tension points to a familiar policy question: who pays for the grid upgrades needed to support a new wave of digital infrastructure. The report says Wisconsin will need additional generation and transmission, and argues that "the customers driving that demand should bear the resulting costs." Wisconsin Public Service, meanwhile, already manages critical-peak pricing periods for customers when demand is highest, a reminder that in many places, strain on the system is not just a future concern but already an operational issue.

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