Wisconsin Sees $1 Billion in Data Center Business Growth

But some question the long-term economic impact of the AI-fueled data center boom

Mar. 3, 2026 at 10:50pm

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While no hyperscale data centers are yet online in Wisconsin, the nationwide, artificial-intelligence-fueled market is already spurring over $1 billion in business growth for several Wisconsin companies. Regal Rexnord, Generac, and Modine have all reported major data center-related orders and expansions, but concerns remain about the long-term economic impact of the data center boom.

Why it matters

The rapid growth of data centers in Wisconsin is fueling short-term construction jobs and revenue, but there are questions about whether it will lead to durable, long-term economic benefits for the state. Opponents are also raising concerns about the environmental impact of these large facilities.

The details

Three Wisconsin companies - Regal Rexnord, Generac, and Modine - have already amassed over $1 billion in data center-related business, with orders for motors, backup generators, and cooling systems. Other companies like Trane Technologies, Excellerate, and Maysteel are also seeing growth tied to the data center boom. However, the standard 'speedy dealmaking and opaque negotiations' model of data center development often delivers temporary construction jobs rather than lasting economic benefits.

  • In February 2026, Regal Rexnord announced $735 million in data center orders.
  • In February 2025, Modine announced $180 million in data center cooling system orders.
  • In November 2023, Excellerate opened a 385,000-square-foot plant in Little Chute to manufacture 'modular electrical buildings' for data centers.

The players

Regal Rexnord

A Milwaukee-based maker of motors that has received $735 million in data center orders.

Generac

A Waukesha-based manufacturer that has a $400 million backlog of orders for data center backup generators.

Modine

A Racine-based company that received $180 million in orders for data center cooling systems and opened a new 155,000-square-foot plant in suburban Milwaukee.

Modular Power & Data

A 90-employee company in Dane County and suburban Milwaukee that manufactures electrical distribution products for data centers, with $10 million in data center business in 2025 and expectations to more than double that in 2026.

João-Pedro Ferreira

A University of Virginia economist who authored a study projecting data center expenditures in Wisconsin to raise the state's GDP from $354 million in 2024 to $881 million in 2029, with the data center workforce tripling from 360 to 1,143 jobs, but constituting only 0.09% of the overall labor market.

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What they’re saying

“Without this growth, we'd always be much smaller.”

— Erik Thompson, Chief Operating Officer, Modular Power & Data

“The impacts might seem a lot, but they are not.”

— João-Pedro Ferreira, Economist, University of Virginia

“These men and women building these data centers aren't building just buildings, they're building the world's largest computers.”

— Dale Kooyenga, CEO, Metropolitan Milwaukee Association of Commerce

What’s next

No hyperscale data centers are scheduled to begin operating in Wisconsin until later this year, so their ultimate economic impact remains unknown. Concerns about the environmental impacts of these facilities have also sparked loud opposition in the state.

The takeaway

While the data center boom is fueling short-term business growth and construction jobs in Wisconsin, there are questions about whether it will lead to durable, long-term economic benefits for the state. The rapid expansion of AI-powered data centers is also raising concerns about their environmental impact that will need to be addressed.