WISCONSIN RAPIDS – More than three months after a public hearing was postponed to discuss a potential data center in Wisconsin Rapids, conversations and reviews have continued, but no final decisions to purchase former paper mill land have been made.
As of July 6, PNK Group told a Daily Tribune reporter the company is still actively assessing the Wisconsin Rapids property and its related infrastructure as a potential location for a large-scale data center campus, although no final decision has been made to either purchase the property or to move forward with redevelopment.
Any final decision depends on PNK Group’s broader assessment of the property and fit for potential use. PNK Group told a Daily Tribune reporter the developer is looking mainly at power, environmental- and health-related issues and community impact.
The developer said the group is looking to ensure sufficient and reliable power and fiber connectivity to operate a modern, high-density data center in the long term at that Wisconsin Rapids location. PNK Group also said it’s looking at understanding and managing health and environmental issues, including looking at water use and legacy industrial impacts at the former paper mill location. PNK Group said it’s working with city leaders to align potential jobs, investment and community commitments with local priorities.
PNK Group told the Daily Tribune the review process is expected to take time as the company works through technical, economic and community considerations.
“In short, PNK is weighing whether the site can support a technically sound project that also makes sense for Wisconsin Rapids residents,” PNK Group said to a Daily Tribune reporter.
What’s been happening since May?
While the public hearing to discuss a conditional use permit for the project was canceled in May, background work has continued. PNK Group said the company and its representatives have been continuing conversations with city officials and staff as part of its due diligence and part of the permit process, including the conditional use review. PNK Group said those conversations have been focusing on zoning, infrastructure needs and how possible redevelopment on that site aligns with the city’s overall plans for the mill property.
Mayor Matt Zacher said the city is distancing itself from working as closely with PNK Group as they typically work with developers as residents were claiming the project was a done deal and accused the city of questionable behavior. Zacher said the city has been working with a representative from von Briesen & Roper, a law firm, as a go-between for certain PNK Group requests like requesting access to the property to start a noise study. He said the city has worked with PNK Group on standard operating procedures that are typical conversations the city has with all businesses.
Kyle Kearns, the city’s director of community development, told a Daily Tribune reporter the city has been talking with some of PNK Group’s consultants, and conversations have been limited to some of those standard operating procedures like ensuring the city would be able to supply water and waste water needs. Kearns said the city would, in fact, be able to handle the proposed needs the project would have for water and sewer.
Both Zacher and Kearns said PNK Group has been talking with local stakeholders, including local businesses and organizations like the Heart of Wisconsin Chamber of Commerce.
Staci Kivi, the president and CEO of the Heart of Wisconsin Chamber of Commerce, told a Daily Tribune reporter the chamber is in the process of trying to learn more about community concerns and the project itself. She said the group has talked with community members about their concerns and with PNK Group to try to get more details and facts about the project and its impact. Kivi said as a chamber, the organization is holding a neutral stance as it tries to understand community concerns and works to ensure the developer is able to address those concerns.
What’s next?
PNK Group said community engagement is central to how the developer approaches its redevelopment projects. The company said small group meetings are underway with residents to learn more and share feedback beyond any city-led hearings. PNK Group will be scheduling more public events and will share details when they are available.
Zacher said PNK Group has not presented a new application for a conditional use permit or updated its application in any way, but the developer has also not pulled its application. PNK Group’s application is still active and stands as it was submitted at the end of April.
A recap of the hyperscale data center campus proposal
As of July 6, PNK Group said the concept the company currently envisions for the site is a multi-building hyperscale data center campus. The site would be designed for cloud and AI-focused computing workloads, and the site would be redeveloped in phases.
The Daily Tribune reviewed and reported on PNK’s initial plans at the beginning of May when the city released the application for the conditional use permit to construct a proposed data center in Wisconsin Rapids April 30, noting the application may be updated or revised before moving forward to the Planning Commission.
PCH WI Holdings LLC filled out the application that was accompanied by a letter to the city from Larkin Hoffman on behalf of PNK Group USA, the developer.
The proposed project would stand on what is currently three parcels of land at 950 Fourth Ave. N., on the north side of the paper mill property, north of the railroad tracks, near where the pulp mill had been demolished. The three parcels add up to 208.95 acres of land, and the application shows the project would take up about 1.2 million square feet.
Initial plans include converting an existing 143,000-square-foot building on the site into a data center on the south end of the property, then building four new data center buildings.
According to the conditional use application released April 30, PNK Group anticipated construction in phases between 2027 and 2029, starting with work on existing structures whenever possible, them moving to new construction.
In those initial plans, PNK Group said power would come from a coordinated arrangement between Consolidated Water Power Company at the local distribution and substation level and the American Transmission Company at the regional bulk transmission level and would not degrade electric services for homes, schools, hospitals and existing businesses.
Plans also estimated using about 2,000 gallons of water per day per building, adding up to about 10,000 gallons of water per day for the property. The application stated anticipated sewer discharge would be about the same as domestic usage and no chemicals would be discharged into the network.
PNK Group said specific phases for building, power levels and cooling designs will depend on additional engineering, market demand and regulatory requirements.
The developer said more details will be shared as the public processes advance.
Contact Caitlin at cshuda@usatodayco.com or follow her on Twitter @CaitlinShuda.
This article originally appeared on Wisconsin Rapids Daily Tribune: Developer, city leaders continue talks on Wisconsin Rapids data center
Reporting by Caitlin Shuda, Wisconsin Rapids Daily Tribune / Wisconsin Rapids Daily Tribune
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By Caitlin Shuda, Wisconsin Rapids Daily Tribune | USA TODAY Network
