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Janesville’s one-year pause gives city time to weigh data center costs and benefits

The City Council voted unanimously to pause data center development for a year while it considers potential safeguards and community impacts. The debate comes as a state fiscal analysis estimates Wisconsin could forgo as much as $2 billion in sales tax revenue through data center incentives.

Janesville’s one-year pause gives city time to weigh data center costs and benefits
JANESVILLE, Wis. — The City Council voted 7-0 Monday night to impose a one-year moratorium on data center development, giving the city time to study the facilities’ potential benefits and costs before projects move ahead. The pause does not permanently bar data centers. City leaders say they will use the year to examine the issue and consider protections for the community. Cathy Erdman, a spokesperson for the Snow Janesville group, said the vote was a significant step after a lengthy effort, but she cautioned that its lasting effect remains unclear. “To be honest, it’s too early to tell,” she said. Council member Michael Cass said he hopes the moratorium signals that city officials are committed to learning more and ensuring protections are in place. The local debate is unfolding amid broader scrutiny of public incentives for data centers. Wisconsin is among 38 states that offer tax incentives to attract the facilities. A Legislative Fiscal Bureau report estimates that data center projects could cost the state up to $2 billion in forgone sales tax revenue. The report also identifies potential economic returns, including income and sales taxes from construction workers, corporate income taxes from construction companies, and additional tax payments from utilities serving data centers. The Janesville council’s pause leaves the city time to weigh those potential gains against the costs and effects of development before the moratorium expires next year.

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