Democratic gubernatorial candidate David Crowley now says he would sign legislation to fully repeal Wisconsin’s sales and use tax exemption for data centers, a complete reversal of his earlier calls for stricter conditions rather than an outright rollback.
Speaking at a forum with UpNorth News at Madison’s Overture Center, the Milwaukee County executive said he would “absolutely” sign a recently introduced Republican bill to end the tax break.
“The fact that these tech companies are getting a billion dollars in tax breaks, it’s being delivered on the backs of hard-working families,” Crowley said.
The exemption, included in the 2023-25 state budget passed by the Republican-controlled Legislature and signed by Democratic Gov. Tony Evers, applies to equipment, construction materials and other property used to build, renovate or operate qualified data centers.
The nonpartisan Legislative Fiscal Bureau has estimated the provision has already saved developers about $1.5 billion, with potential ongoing annual costs of roughly $369 million once projects are complete. Major certified projects include sites involving Microsoft in Mount Pleasant, Oracle in Port Washington and others in Beaver Dam.
Crowley had previously been more cautious. In responses to the Milwaukee Journal Sentinel and other statements this summer, he said he did not believe the state “should automatically roll back all data center tax incentives” and instead favored a “more rigorous review” of whether taxpayers received sufficient value. He has also said any incentives should be tied to benchmarks such as job creation, local tax base growth, renewable energy use (including calls for 100% clean power), community benefits and protections against higher utility rates for residents.
His opponent, Republican U.S. Rep. Tom Tiffany, has repeatedly called for ending all subsidies for data centers, arguing the companies are among the world’s wealthiest and should not be subsidized by Wisconsin taxpayers. Tiffany has highlighted the issue in campaign ads labeling Crowley “Data Center David Crowley.” In a statement to The Cap Times, Tiffany reiterated support for full repeal of the exemption.
A group of Republican lawmakers, including some who supported the original budget provision, introduced the repeal bill earlier this month. The Legislature is not in session, so the measure cannot advance before the Nov. 3 election. Data centers have become a prominent campaign issue amid public concern; a September Marquette Law School Poll found 74% of Wisconsin residents said the costs of data centers outweigh the benefits.
Crowley also discussed related issues at the forum, including plans to regulate artificial intelligence and social media, such as age restrictions on chatbots for children under 13 and stronger penalties for AI-generated sexual images of minors. Both candidates have expressed support for data centers in the past as part of economic development and technology competitiveness while differing on incentives and conditions.
