Wisconsin Rapids Data Center Plans Cancelled

WISCONSIN RAPIDS, Wis (WFHR / WIRI) – Digital Power Optimization has informed the city of Wisconsin Rapids that it no longer intends to construct a data center in the city.

Digital Power Optimization and companies like it secure options for land and power at sites that have excess generation capacity. They calculate the size of the data centers those resources will support and attempt to market the result to the AI industry.  Last January, DPO issued a press release stating they were considering the former Verso mill site in Wisconsin Rapids for such a center.

Wisconsin Rapids Mayor Matt Zacher explains: “They go in and lock up a contract, and then they go out and say hey we have 20mW of energy available any takers? They go worldwide and ultimately if nobody takes it, they don’t want to keep the contract locked up because at some point they will be liable for the money they are locking up. So, they come in and say they couldn’t find any customers- sorry- thanks a lot, see you later”

AI datacenters are typically operated remotely and employ relatively few onsite long-term.  Mayor Zacher says the city is exploring other options for the available land and power, “but is now more reluctant to give away 80MW of energy, and now we have no energy capacity to give to manufacturing, where you could employ 100- 200- 900 employees”.

The MRD group and Capital Recovery are continuing demolition and eventual clean-up of the old Verso mill site and rail yard. The reclaimed aluminum and steel will be recycled, the concrete ground up and sold as road base, eventually opening up approximately 250 acres to new development. The city of Wisconsin Rapids holds a bond to ensure cleanup is completed at the end of the process.

Mayor Zacher added: “There is one storage building that’s in front of the Kraft mill that will be detached and left standing as I understand. The entire Kraft mill from there on back, everything besides that building will be taken out.  That’s about 250 acres of open land they’ll be able to develop, along with 80-100MW of available energy to power machines with for people to come in and build manufacturing and databases, although we do not want all databases. Some would be great.”  When asked about local workforce availability to support the available land and power, Mayor Zacher commented: “We have a solid base with MSTC and Stevens Point that will do anything in their power to build our workforce as fast as possible. We have all the pieces in place”  

Mayor Zacher continued: “The site is owned by Capital Recovery Group and in the end it is their decision, but they have been great about allowing us to help market it. This.. city is being marketed throughout the entire world.” 

Digital Power Optimization has not replied to our request for comments.