Business
Microsoft objects to cost agreement for data center power
Microsoft has filed an objection with federal regulators regarding a power cost agreement for its major Wisconsin data center infrastructure projects.
By Jon Styf · 2026-08-30T18:07:41.424Z
The Center Square – Microsoft is objecting to an agreement between We Energies and the Wisconsin Public Service Commission, saying it was not involved in negotiations and the agreement does not go far enough to ensure consumers do not pay for costs related to bringing power to the company’s $20.6 billion in data center projects in the state.
Microsoft said that it was not allowed to give input on the agreement and the agreements “predictably contain significant deficiencies – errors, contradictions and inconsistencies – and raise several significant cost of service and open access issues that support a Commission finding that the Agreements may not be just and reasonable.”
The objections were raised in a filing with the Federal Energy Regulatory Commission with Microsoft stating that a settlement judge would be the best way to resolve the issues.
Microsoft said that the agreement won't allow the company to fully fulfill its promises in the federal Ratepayer Protection Pledge https://www.thecentersquare.com/national/article 8b77a599 1933 4ce7 adcc 08e720e08698.html but it also objected to it leaving the timeline of transmission upgrades in the hands of the power companies.
Microsoft and Oracle are managing data centers in Port Washington and Racine County that are estimated to lead to $4 billion in new natural gas projects https://www.thecentersquare.com/wisconsin/article 9160b9a5 e340 4982 b8d0 b2f924c95d92.html and $2 billion in new big power lines in both Wisconsin and Michigan’s Upper Peninsula.
“Microsoft respectfully requests that the Commission initiate hearing and settlement judge procedures so that Microsoft may continue efforts to work with ATC and WEPCo, as well as the Wisconsin Commission, the Citizens Utility Board of Wisconsin, and others, to resolve the deficiencies,” Microsoft wrote.
Microsoft said that having an accurate agreement is essential so that power is connected in a timely manner and the infrastructure is in place for Microsoft’s Racine County projects.
The company announced in June https://www.thecentersquare.com/wisconsin/article ec0b71a5 4d59 4e01 9cda fe7913755d1e.html that the first phase of its Fairview data center projects was complete.
Microsoft wrote that American Transmission Company and We Energies have no incentive to meet the in service dates for power transmission and the companies are capable of “updating the schedule, and thus the payments, if their timelines slip” as part of the agreement.
This story originally appeared on thecentersquare.com https://www.thecentersquare.com/wisconsin/article a987a1d2 0a78 4740 a498 3223625b8d2d.html .