State Rep. Duke Tucker announced Oct. 18 that he will co-sponsor legislation to eliminate sales and use tax exemptions for data centers in Wisconsin.

The exemptions were created under 2023 Wisconsin Act 19 for property and equipment used to build, renovate or operate qualified data centers. Tucker said communities that allow such projects should receive the tax benefit from them, rather than the exemption going to large technology companies.

Tucker also pointed to effects on the electrical grid and water use, and to rising utility rates in the 75th Assembly District. He said he supports local communities that choose to consider moratoriums on data center projects.

A Legislative Fiscal Bureau estimate cited in the announcement put potential tax savings for developers of current projects at more than $1.5 billion during construction, plus an additional $369 million a year once projects are completed.