IN MY OPINION: Confidentiality pact  signed by Port officials commits city to help defend data center lawsuits over secrecy

All too often, secrecy and confidentiality carry the day in proceedings of state and local government. In one recent case, the name “Microsoft” on a state Public Service Commission filing was redacted —blocked from public view—along with pages and pages of other information. The redactions served no purpose, as the company’s role in the former Racine County site formerly known as Foxconn had been announced publicly in 2024 by then-President Joe Biden and widely reported.

PSC statutes indicate that utilities can keep only certain items from the public and for very specific reasons; for instance, to protect competitive information or trade secrets. But in practice, secrecy is extended to a wide range of records. 

The problem is more urgent then ever in an era of rapidly rising costs for utility customers and proposals for the building of huge, energy-gulping data centers now being proposed throughout the state. The stakes are getting higher.

Wisconsin’s utility system is undergoing a rapid-fire and massive transformation, arguably the biggest since the advent of widespread use of air conditioning 75 years ago, or even since Thomas Edison and Nicola Tesla were lighting cities for the first time using electricity.

Two such data center projects in eastern Wisconsin—Microsoft in Racine and OpenAI Oracle Vantage in Port Washington—would use as much power by themselves as all of We Energies customers used last year. You read that right: Each of these centers would require as much electricity as all 1.1 million industrial, commercial and residential customers used last year, including the entire cities of Milwaukee, Racine, Kenosha, Port Washington, Waukesha and Appleton.

So it’s no wonder there’s more attention being placed, here and across the country, on the decisions being made by the three PSC commissioners in Madison and their counterparts across the country. This is especially true given that a new Marquette Law School poll found that a majority of state residents, Democrats and Republicans alike, believe that the costs of data centers outweigh the benefits.

In the case of the Port Washington data center, city leaders signed a development agreement that contains a very broad definition of  “confidential information” and then binds the city to assist the data center developer in defending any lawsuit seeking to release anything it considers confidential. 

Recently, the nonprofit law center Midwest Environmental Advocates had to sue the city of Racine to get water records for the Microsoft development. 

Fortunately, Wisconsin’s PSC is paying heed to these concerns. At a training session for the energy legal community in Madison earlier this year, the PSC put utilities and their law firms on notice that the agency will be taking a closer look at confidential filings and scrutinizing more closely the requests filed by utilities to keep information from public view.

That transparency initiative is overdue, and welcome.

Local and state government leaders enticed by the lure of economic development should take heed. Going forward, let us err on the side of more transparency, not less.