“I had eight conversations this morning, and 10 of them were about data centers.”
Wisconsin Aluminum Foundry CEO and New North, Inc. board co-chair Sachin Shivaram shared this sentiment during the annual New North Summit June 9 at Lambeau Field in Green Bay.
Data centers were a dominant topic not only overheard at the summit, but across the broader cultural moment — they are the physical representation of a major technology shift affecting nearly every facet of our economy. In a region known for its strengths in manufacturing and construction, that could mean huge economic impacts, but only if we are ready and willing to meet the moment.
Microsoft corporate VP and General Counsel Rima Alaily, who leads the company’s cloud and AI infrastructure initiatives, said that despite its nebulous name, the cloud is deeply physical.
“That term almost does a disservice, because ‘the cloud’ feels like something intangible, something out there in the air, but it really is something we need physically through data centers,” she said during her keynote presentation.
Alaily pointed out global data center capacity has increased five times since 2005, representing $1 trillion in private sector capital investment.
Our region’s manufacturing and construction base is precisely the supply chain data center development depends on. When Microsoft built its $7 billion Mount Pleasant data center, Appleton-based Boldt Company deployed 200 workers to pour concrete foundations and frame steel. Boldt in turn contracted Green Bay’s La Force to supply and install doors and frames.
Data center proposals have drawn opposition in communities across the country, including right here in Northeast Wisconsin, with concerns focused on water consumption, power demands and the idea that potential benefits flow elsewhere. Those concerns deserve serious answers. What gets lost in the opposition, however, is how the economic benefits of data center development ripple outward.
“The question is not whether this transformation is coming. The question is whether regions like Northeast Wisconsin will shape it so that it reflects local values, strengthens communities and creates opportunity for the people that live here,” Alaily said.
Communities that come to the table willing to engage are positioned to shape what gets built and how, and who benefits.
