Microsoft challenges $600M data center power plan

Microsoft joined Wisconsin consumer advocates in challenging ATC and We Energies’ plan to charge the company more than $600 million for transmission upgrades to its Mount Pleasant data-center campus, arguing the proposal does not adequately shield ratepayers. The dispute comes as ATC plans over $2 billion in transmission investments to serve large data centers across Wisconsin, with costs typically passed to utility customers. Microsoft said it was not consulted on the agreement and urged federal regulators to scrutinize cost allocations, raising concerns about whether the rate treatment is just and reasonable. In parallel, Wisconsin ratepayer advocates and Microsoft pressed the Federal Energy Regulatory Commission to pause or reevaluate the cost-shifting proposal, calling for hearings or settlement judge procedures to resolve deficiencies. Microsoft and Oracle are expanding data centers in Wisconsin and Michigan, a move that coincides with large-scale natural gas projects and significant power-line investments. The controversy has been echoed across multiple outlets, with Microsoft and ratepayer advocates seeking a timely and accurate transmission framework that avoids unduly burdening non-data-center customers.