DANE COUNTY, Wis. — Local officials across Dane County say Wisconsin’s approach to data center development leaves communities trying to manage a regional issue one zoning decision at a time, often while developers negotiate privately and residents demand more transparency. Several communities, including Madison and Dane County, have adopted temporary pauses on development as they consider how to respond. Sun Prairie approved a moratorium in September covering data centers of 10,000 square feet or more. The city’s Utilities Commission then received its first public comment on any subject in five years, chair Josh Christensen said. Resident Jenna Frost wrote in support of a moratorium and called for transparency, Christensen told commissioners. The pauses come amid growing interest in large, so-called hyperscale facilities. A Wisconsin Policy Forum report counted at least 30 data centers in the state, most of them older and smaller. Seven hyperscale proposals have been blocked by local governments, including a proposed $12 billion facility near DeForest, while projects in Port Washington and Beaver Dam have continued. WPPI Energy president Mike Peters said that at a meeting last fall, representatives from roughly half of the 51 communities served by the nonprofit power provider said data center developers had approached them. “Data centers are out there knocking on the door of most of our members,” he said. Dane County Board Chair Patrick Miles sponsored the resolution establishing an 18-month moratorium on hyperscale data centers in areas under county zoning authority. He said the pause was partly intended to make a frequently private process more visible, citing developers’ use of nondisclosure agreements in talks with local decision-makers. “We’re living in the Wild West,” Miles said. “There aren’t guidelines. There aren’t guardrails.” Middleton Town Board Chair Cynthia Richson, who serves on the county’s data center advisory committee, said companies with substantial resources can approach local officials individually and offer potential financial benefits. Madison City Council member Derek Field said long-range planning and zoning are among the main tools local governments have to shape or restrict development. But local authority does not necessarily match the scale of the potential effects, officials said. Electricity demand and power costs can cross municipal boundaries, while local governments generally can regulate only within their own jurisdictions. Field said a data center built just beyond Madison’s boundary could still affect the city’s power costs for decades. Wisconsin lawmakers created tax exemptions for data center developers in 2023. County officials say the state has not established a coordinated framework to address issues such as energy use, environmental impacts and community negotiations. The county task force, initially formed to advise local governments, has also begun identifying policy gaps for state lawmakers, Miles said. State law limits one possible local tool: municipalities cannot require developers to sign community benefit agreements as part of conditional-use permitting. Such agreements might include commitments to union labor or renewable electricity. Communities can pursue similar arrangements through annexation or tax increment financing, but Field said the restrictions leave residents at a disadvantage. Officials also warn that leaving negotiations entirely to individual communities could encourage competition for projects, with municipalities offering developers more favorable terms than their neighbors. Richson described that dynamic as a “race to the bottom.” The debate extends beyond local land use to statewide power planning. Miles pointed to discussions about whether to keep the coal-fired Columbia Energy Center near Portage open or convert it to natural gas as electricity demand rises. Decisions about generation can affect communities far beyond the location of a proposed data center, he said. Richson said the state could help municipalities assess proposals by providing independent technical expertise. She cited a proposal by state Sen. Kelda Roys, who sought the Democratic nomination for governor, for a public negotiation team to support communities considering data centers. Local officials say clearer state rules and access to independent experts could help communities evaluate costs and risks before making long-term commitments. Without that support, they say, municipalities are left to negotiate complex projects with limited information and authority.