Report on Wisconsin’s Energy Infrastructure Development and Sustainable Development Goals (SDGs)

Introduction

The rapid expansion of artificial intelligence (AI) usage and data center development in Wisconsin has created an urgent need for reliable baseload electricity generation. This report examines the current energy landscape in Wisconsin, emphasizing the role of natural gas plants in meeting increasing power demands while aligning with the Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action).

Growth of AI and Data Centers in Wisconsin

• Over 80% of Americans use AI-enabled products weekly, indicating widespread and growing AI adoption.
• Wisconsin is experiencing significant data center investments in locations such as Mount Pleasant, Kenosha, Port Washington, Beaver Dam, and Wisconsin Rapids.
• These developments contribute to economic growth, job creation, and technological advancement, supporting SDG 8 (Decent Work and Economic Growth) and SDG 9.

Challenges in Energy Supply

The expansion of data centers and AI infrastructure demands increased electricity supply. However, regulatory changes are leading to the retirement of traditional baseload power sources such as coal plants, creating a supply gap. Key challenges include:

1. Power demand can rise faster than new generation capacity can be developed; data centers can be built within two years, whereas power infrastructure may take a decade or more.
2. The retirement of approximately 79 gigawatts of baseload power by 2034 threatens grid reliability.
3. Without timely action, older coal plants may remain operational beyond planned closure dates, increasing emissions and hindering progress toward SDG 13.

Natural Gas Plants as a Reliable Solution

Current Role of Natural Gas

• Natural gas accounted for approximately 43% of U.S. utility-scale electricity generation last year.
• About 27 gigawatts of new natural gas generation capacity is expected to be built by 2030.
• Natural gas plants offer dispatchable power, providing the flexibility needed to support critical industries and data centers requiring continuous electricity supply.

Wisconsin’s Strategic Initiatives

In response to energy challenges, Wisconsin is advancing projects to enhance natural gas infrastructure, including:

• Unanimous approval by the Wisconsin Public Service Commission for two new natural-gas-fired power plants as part of a $1.8 billion investment by We Energies.
• Construction of a new facility in Oak Creek to replace the retiring coal-powered Oak Creek Power Plant.
• Development of a new gas plant in Kenosha County, along with liquefied natural gas storage and expanded pipeline infrastructure.

These measures align with SDG 7 by promoting reliable and affordable energy access while supporting SDG 9 through infrastructure development.

Economic and Environmental Considerations

Electricity Pricing and Climate Goals

• States with ambitious climate goals often experience higher electricity prices.
• Conversely, states relying on natural gas have seen lower electricity bills alongside reductions in emissions.
• Maintaining affordable energy prices is critical for consumers, businesses, and families in Wisconsin, supporting SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities).

Balancing Development and Sustainability

Wisconsin’s approach emphasizes the need to balance economic growth, energy reliability, and environmental responsibility. Approving and constructing new natural gas capacity now is essential to avoid power shortages and escalating costs, thereby supporting sustainable industrial development and climate action goals.

Conclusion

Wisconsin’s energy future depends on strategic investments in natural gas infrastructure to meet rising electricity demands driven by AI and data center growth. This approach supports multiple Sustainable Development Goals by ensuring affordable, reliable, and clean energy; fostering innovation and infrastructure development; and advancing climate action through emissions management.

References

• American Petroleum Institute – Midwest Region
• Wisconsin Public Service Commission
• U.S. Energy Information Administration
• North American Electric Reliability Corporation (NERC)

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 7: Affordable and Clean Energy
   • The article discusses the need for reliable baseload electricity generation to support growing AI and data center demands in Wisconsin.
   • It highlights the role of natural gas as a key energy source to meet current and future electricity needs.
2. SDG 9: Industry, Innovation, and Infrastructure
   • Data center development and technological infrastructure expansion are central themes.
   • Investment in energy infrastructure to support economic growth and technological progress is emphasized.
3. SDG 13: Climate Action
   • The article touches on climate goals, emissions, and the balance between renewable energy and natural gas.
   • It discusses the implications of retiring coal plants and the environmental impact of energy choices.
4. SDG 8: Decent Work and Economic Growth
   • Jobs and economic development linked to data center growth and energy infrastructure are mentioned.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 7: Affordable and Clean Energy
   • Target 7.1: By 2030, ensure universal access to affordable, reliable, and modern energy services.
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Target 7.3: Double the global rate of improvement in energy efficiency.
2. SDG 9: Industry, Innovation, and Infrastructure
   • Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure to support economic development and human well-being.
   • Target 9.5: Enhance scientific research, upgrade technological capabilities of industrial sectors.
3. SDG 13: Climate Action
   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
   • Target 13.3: Improve education, awareness-raising and human and institutional capacity on climate change mitigation.
4. SDG 8: Decent Work and Economic Growth
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Energy generation capacity and fuel mix
   • Indicator: Gigawatts (GW) of natural gas generation capacity built by 2030 (article mentions 27 GW expected).
   • Indicator: Gigawatts of baseload power retired by 2034 (article mentions 79 GW likely to retire).
   • These measure progress towards ensuring reliable and affordable energy (SDG 7 targets).
2. Electricity prices and affordability
   • Indicator: Changes in electricity prices in states with different energy policies (article compares states with aggressive climate goals versus those relying on natural gas).
   • This reflects progress on affordability and economic impact (SDG 7 and SDG 8 targets).
3. Emissions and environmental impact
   • Indicator: Emission levels from coal plants kept online versus natural gas plants.
   • Implied measurement of climate action effectiveness (SDG 13 targets).
4. Infrastructure development
   • Indicator: Number and scale of new data centers and supporting energy infrastructure projects approved and constructed (e.g., Microsoft data center in Mount Pleasant, new plants in Oak Creek and Kenosha).
   • Measures progress in industry innovation and infrastructure (SDG 9 targets).

4. Table of SDGs, Targets, and Indicators

Source: jsonline.com