WISCONSIN RAPIDS – As city leaders discuss plans for a potential data center project in Wisconsin Rapids, many specific details for the project are still unknown and undetermined.
On April 30, the city released an application from PCH WI Holdings LLC for a conditional use permit to construct a potential data center in the city, noting the application could be updated or revised before the Planning Commission officially reviews it. The city also released a letter to the city from Larkin Hoffman on behalf of PNK Group USA, the potential developer for the project.
City documents indicated the project would be built on 208.95 acres of land at 950 Fourth Ave. N., on the north side of the former paper mill property, north of the railroad tracks, near where the pulp mill was demolished. Construction would take up about 1.2 million square feet of the property. Initial plans call for renovating an existing 143,000-square-foot building and adding four new data center buildings and hiring up to 70 employees per shift. Early plans anticipate construction between 2027 and 2029, using power from Consolidated Water Power Company in partnership with American Transmission Company and estimated the data center would use about 10,000 gallons or water per day on the property.
After a Daily Tribune reporter reviewed and shared details of the conditional use permit and accompanying letter, the reporter connected with the developer to learn more about the company and its plans. PNK Group told the Daily Tribune reporter the company is an industrial developer that delivers large-scale industrial and logistics facilities and shared additional context for its work.
How are these projects constructed?
After concerns were raised about construction on other data center projects and disruption in those communities, the Daily Tribune reporter asked about PNK Group’s process.
The company said it works with partners in digital infrastructure and data center development to make sure projects like the potential Wisconsin Rapids site would have the specialized requirements it needs. PNK Group said it then constructs much of its projects off-site to help reduce disruption on the property, compared to more traditional construction projects.
Who would own and operate the data center?
As city leaders review the developer’s application for a conditional use permit, the long-term ownership of the potential Wisconsin Rapids project, land and facilities remains undecided.
PNK Group told a Daily Tribune reporter large-scale data center projects can be constructed in several ways. In some cases, a developer could retain ownership of the land and facilities and work with an operating partner, PNK Group said. In other cases, the developer could lease or sell the facilities or campus to a long-term operator or investor.
Land, buildings and computing infrastructure could be owned by one single entity, or ownership could be shared among multiple groups, depending on what the project is and where financing comes from, the company said.
“For this potential project in Wisconsin Rapids, no decisions have been made and no specific ownership or operating arrangement has been finalized at this early stage,” PNK Group said in a statement to the Daily Tribune reporter.
PNK Group still exploring suitability of former mill property
PNK Group said the company is still exploring the possible purchase of the former industrial property in Wisconsin Rapids and evaluating the property’s suitability for a potential data center redevelopment at the site.
“We appreciate the interest from the community and, should we decide to move forward, we will share additional information and engage with local officials, stakeholders and residents as plans advance,” the company shared in a statement.
No final decisions have been made at this time, the company said.
More about PNK Group
According to PNK Group’s website, the company is a full-cycle engineering, manufacturing and development company that develops its own technological innovations and applies engineering solutions in industrial construction. The company serves as an investor, developer, engineering company, production company and general contractor, according to the website.
The website indicates the company has more than 20 years of experience across central and eastern Europe and central Asia, and it expanded to operate in the United States market in 2017, focusing on warehousing, logistics and manufacturing. PNK Group launched its vertically integrated company with its own production facilities in Georgia and Pennsylvania in 2022 and 2023 and uses a Building Assembly Set to construct its buildings.
What’s next?
The city originally planned to hold a public hearing May 4 about the conditional use permit, however because of the project’s specific industry, size and location, the city announced it would defer the public hearing and would be scheduling a listening session to provide more information about the project and respond to questions.
The date and time of that listening session has not been scheduled as of May 14.
Rescheduled public hearings will be held in front of the Planning Commission to discuss a conditional use permit for the project.
City staff would work to create a list of conditions specific to the project and property. The city’s Planning Commission would review and vote to share their recommendations with the Wisconsin Rapids Common Council. The Common Council would have authority to approve the conditional use permit.
Contact Caitlin at cshuda@usatodayco.com or follow her on Twitter @CaitlinShuda.
This article originally appeared on Wisconsin Rapids Daily Tribune: Who is the developer of the proposed Wisconsin Rapids data center?
Reporting by Caitlin Shuda, Wisconsin Rapids Daily Tribune / Wisconsin Rapids Daily Tribune
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