The Wisconsin Rapids Common Council voted 7-0 on Tuesday night, Oct. 20, to deny a conditional use permit for a hyperscale data center that PNK Group USA proposed for the city's former paper mill site, WSAU/WAOW reported. It came after the city's Planning Commission recommended denial and after a moratorium on new data centers took effect earlier in the month.
Mayor Matt Zacher told WSAU/WAOW that he is not opposed to all data centers and wants the city to take its time to make sure any such project is done right. FOX 11 reported that Zacher said the denial gives the city time to update its ordinances.
What PNK proposed
According to WRCO, PNK Group USA proposed the project for about 209 acres at 950 Fourth Avenue North, the Papermill Redevelopment site, as WRCO described it. WRCO reported that the plan called for renovating one existing building and building four new ones, for about 1.2 million square feet in total. The station put the project's estimated power demand at 150 MW.
The city's Papermill Redevelopment information page says the site is owned by Capital Recovery Group. It also says the city has no legal or financial partnership with, and no non-disclosure agreements with, any entity pursuing a data center. The city's Comprehensive Plan calls for industrial use of the property, according to the same page.
Why the permit was denied
The council's vote followed a recommendation from the Planning Commission. WRCO reported that the commission voted 7-0 on Sept. 16 to recommend denial, citing missing information in four areas:
- approvals from the electric utility
- staffing plans
- construction traffic
- building layouts
FOX 11 likewise reported that the planning committee recommended denial because of missing information from PNK.
PNK disputes that account. According to WRCO, the company says it answered every question city staff raised.
What the city's ordinance requires
Some of the gaps the commission cited, such as electric utility approvals, relate to requirements in the city's data center ordinance. The city's page summarizes these requirements for a data center in Wisconsin Rapids:
- location in an M-2 zoning district, with a conditional use permit
- a setback of 400 feet from residential property
- cooling that uses closed-loop or recycled water
- compliance with the city's noise ordinance
- approvals from the electric utility and from relevant state and federal bodies
The city's page does not report the Oct. 20 vote itself.
The community benefit offer
Before the vote, PNK put forward a $5.7 million Community Benefit Plan, WRCO reported. As described by WRCO, the plan included:
- $3 million for waterfront access
- $1.4 million for emergency response
- $800,000 for workforce training
- $500,000 for river protection
WRCO noted that the plan was not legally binding.
The moratorium
The council also had a moratorium in place. WSAU/WAOW reported that a one-year moratorium on data centers began Oct. 9 and can be extended to 18 months. FOX 11 said the 12-month moratorium also added restrictions on future data centers.
PNK filed its application before the moratorium, so the moratorium did not stop the project automatically, according to WRCO. That left the permit decision to the council. WRCO also reported that the Oct. 20 meeting would not include another public hearing on the application.
Why it matters beyond Wisconsin Rapids
According to the city, interest from the data center industry in the papermill site was driven primarily by its existing electrical capabilities and former manufacturing use, and the property is zoned M-2 Heavy Industrial. The city's Comprehensive Plan calls for the property to remain industrial. Even so, both the Planning Commission and the council voted unanimously against the permit. According to WRCO, the commission cited missing information on items such as utility approvals and traffic.
In this case, the developer and the Planning Commission disagreed about whether PNK's documentation was complete: the commission cited missing information, while PNK said it had answered every question city staff raised, according to WRCO.
What Happens Next
WSAU/WAOW reported that the city will reevaluate its data center ordinance while the moratorium is in effect. WSAU/WAOW said no data center proposals are allowed until the moratorium is lifted. FOX 11 reported that Mayor Zacher said the denial gives the city time to update its ordinances.
FOX 11 also reported that a recall election for the District 7 alderperson is scheduled for Oct. 27.
None of the sources reviewed for this article reported a public statement from PNK Group USA on whether it plans to pursue the project further.
