Wisconsin Approves 1.5 GW of Gas Power for Data Centers
Wisconsin approves two Invenergy gas plants totaling 1.5 GW as data centers drive a projected 40% increase in peak power demand by 2032.
Wisconsin regulators approved two Invenergy natural gas power plants totaling 1.5 GW as rapid data-center growth drives sharply higher electricity demand.
MONTREAL (Oil Monster): Wisconsin regulators have conditionally approved two large natural gas-fired power plants totaling approximately 1.5 gigawatts as the state prepares for a sharp increase in electricity demand driven largely by data centers and artificial-intelligence infrastructure.
The Public Service Commission of Wisconsin granted Certificates of Public Convenience and Necessity to Invenergy's Foundry Ridge Energy Center in Walworth County and Red Oak Ridge Energy Center in Kenosha County on October 15.
Foundry Ridge is approved for up to 324 megawatts of generation, while Red Oak Ridge is approved for up to 1,186 MW, giving the two projects combined authorized capacity of approximately 1,510 MW.
The two approved plants can provide up to 1.51 GW of generating capacity. Wisconsin's projected peak electricity demand is expected to rise by at least 5.8 GW between 2026 and 2032, from 14.2 GW to more than 20 GW.
That means Foundry Ridge and Red Oak Ridge together are equivalent to roughly one-quarter of the minimum projected increase in statewide peak demand. They are peaking plants, however, so their 1.51-GW nameplate capacity should not be interpreted as continuous 24-hour generation.
See how data centers are reshaping U.S. natural gas demand →The three-member Public Service Commission unanimously granted construction approvals for both projects after reviewing their individual regulatory records.
The decision represents a major milestone for Invenergy, which is developing both facilities as wholesale merchant generating plants.
The PSC noted that these are the first natural gas generation projects in Wisconsin to seek approval through the state's merchant-developer framework, an approach previously used for renewable energy projects.
The Foundry Ridge Energy Center will be built in the Town of Darien in Walworth County.
The approved project consists of three 108-MW natural gas-fired simple-cycle combustion turbines, giving the facility total authorized capacity of up to 324 MW.
Invenergy describes Foundry Ridge as a peaking facility intended to operate when electricity demand is elevated.
The project is expected to enter service in 2028.
The much larger Red Oak Ridge Energy Center will be located in the Town of Paris in Kenosha County.
The project is designed around five natural gas-fired simple-cycle combustion turbines and has approved generating capacity of up to 1,186 MW.
Red Oak Ridge is expected to enter service around 2030.
If completed at its approved capacity, it would rank among Wisconsin's largest natural gas-fired generating facilities.
The projects are moving forward as Wisconsin prepares for an unusually rapid increase in electricity demand.
A draft Strategic Energy Assessment from the Public Service Commission projects statewide peak demand rising from approximately 14.2 GW in 2026 to more than 20 GW by 2032.
That represents an increase of more than 40% in six years.
The assessment said more than 72% of the projected peak load is associated with three active data-center developments.
The state's electricity outlook has changed rapidly as hyperscale technology companies develop large data-center campuses.
Major projects include Microsoft's development in Mount Pleasant, Oracle's Project Lighthouse in Port Washington and Meta's data-center development in Beaver Dam.
These facilities require large quantities of reliable electricity and can create demand profiles comparable with major industrial operations.
The resulting load growth is driving utilities to consider new generation, transmission, natural gas infrastructure and storage projects.
ALSO READ: Chevron Signs 20-Year Gas Power Deal With Microsoft Data Center
The Wisconsin projects are part of a wider U.S. trend in which natural gas-fired generation is being proposed to meet rapidly rising data-center electricity requirements.
Gas plants can provide dispatchable generation when electricity demand rises or renewable generation is unavailable.
The U.S. Energy Information Administration expects power-sector demand to remain an important source of long-term natural gas consumption growth as data centers and broader electrification increase electricity use.
ALSO READ: EIA: Data Centers Help Drive Long-Term U.S. Gas Demand
Wisconsin Electric Power Company, which operates under the We Energies brand, has separately applied to acquire the projects from Invenergy.
The utility's regulatory filing estimates the acquisition and construction cost of Foundry Ridge at approximately $564.2 million.
For Red Oak Ridge, the corresponding estimate is approximately $1.77 billion.
Together, the proposed transactions represent roughly $2.33 billion of investment.
The October 15 decision should not be interpreted as automatically approving We Energies' acquisition of the plants.
The CPCN proceedings considered whether Invenergy could construct the two merchant facilities.
We Energies' proposed acquisitions are handled through separate regulatory proceedings that address issues including utility ownership, customer need, costs and ratepayer impacts.
This distinction is particularly important because Wisconsin's merchant-generation law limits what the PSC may consider during the initial construction review.
The Public Service Commission highlighted unusual aspects of the approval process in its October decision.
Under Wisconsin law, merchant developers must show that a project is in the public interest, but they are not required in the construction proceeding to demonstrate the reasonable needs of utility customers.
The PSC also said the merchant process prevents it from considering alternative sources of electricity supply and certain economic factors, including project cost, at that stage.
PSC Chairperson Summer Strand said the state's lack of an integrated resource-planning requirement makes it more difficult to evaluate new generation projects as part of a single long-term system plan.
The increase in large technology loads has raised concerns over whether existing utility customers could be required to subsidize infrastructure constructed for data centers.
Earlier in 2026, Wisconsin regulators approved changes to We Energies' tariff for very large customers intended to protect other ratepayers from costs directly associated with new data-center demand.
The proposed acquisition of Foundry Ridge and Red Oak Ridge will therefore be evaluated against a changing regulatory framework for major new electricity users.
Both projects have faced opposition from environmental organizations and local residents concerned about air pollution, greenhouse gas emissions, health effects, water use and electricity costs.
A University of Wisconsin-Madison research team modeled potential health impacts from the two projects assuming they operate at an average annual capacity factor of approximately 20%.
The analysis estimated four excess premature deaths during the first year of operation and approximately 118 over 30 years as a result of additional fine-particle exposure.
The researchers estimated total monetized air-quality damages of approximately $1.38 billion over the plants' modeled 30-year operating lives.
Those figures are modeled estimates from the university analysis and are not findings by the Public Service Commission.
The Public Service Commission said the project records included detailed environmental and air-quality reviews.
However, both plants must separately obtain air-pollution control permits from the Wisconsin Department of Natural Resources.
The PSC said current state law limits its ability to reject a merchant generation project based on air-pollution impacts if the project is otherwise eligible for permitting by the DNR.
Invenergy says the two plants will provide dispatchable electricity during periods of high demand while supporting additional renewable-energy development on the grid.
Foundry Ridge is expected to support up to 150 construction jobs and generate additional annual revenue for local governments.
Red Oak Ridge is expected to support roughly 500 jobs during peak construction and provide up to approximately $2.4 million annually in additional local government revenue, according to the developer.
Both facilities use simple-cycle combustion turbines rather than combined-cycle technology.
Simple-cycle units can start relatively quickly and are commonly used to meet periods of high electricity demand or provide backup when other generation is unavailable.
Invenergy has described the two Wisconsin projects as peaking facilities rather than plants intended to operate continuously at full output.
The University of Wisconsin-Madison health analysis assumed average annual capacity factors of approximately 20% for both facilities.
Wisconsin's current statewide peak electricity demand is approximately 14.2 GW.
The 1.51 GW of combined approved capacity at Foundry Ridge and Red Oak Ridge is equivalent to approximately 10.6% of that current peak.
That comparison demonstrates the scale of the projects but does not mean they would supply 10.6% of Wisconsin's electricity over a full year because the plants are expected to operate primarily during periods of higher demand.
The connection between natural gas and AI infrastructure extends well beyond Wisconsin.
OilMonster has reported on new gas plants, pipelines and long-term energy contracts being developed specifically for hyperscale data centers in Texas, Pennsylvania and other U.S. markets.
Chevron, Microsoft, ExxonMobil and several pipeline operators are among the companies developing or evaluating gas-based power solutions for large digital infrastructure projects.
ALSO READ: ExxonMobil Plans Large Gas-Fired Plant for Data Centers
Invenergy must satisfy the conditions attached to the Wisconsin PSC approvals and secure remaining permits, including air permits from the Wisconsin Department of Natural Resources.
The separate regulatory proceedings involving We Energies' proposed acquisitions will remain important because they will address issues not fully considered under the merchant-developer construction review.
Foundry Ridge is expected to enter service first, followed by Red Oak Ridge around the end of the decade.
The larger market question is whether Wisconsin's projected data-center buildout materializes at the scale currently reflected in utility forecasts and how much additional generation and natural gas infrastructure will ultimately be needed to serve it.
How much new natural gas generation did Wisconsin approve?
Foundry Ridge is approved for up to 324 MW and Red Oak Ridge for up to 1,186 MW, giving the projects combined authorized capacity of approximately 1,510 MW.
Why is Wisconsin adding new gas power plants?
Electricity demand is projected to rise sharply, with data centers and artificial-intelligence infrastructure representing a major source of expected load growth.
How much could Wisconsin electricity demand grow?
A draft state Strategic Energy Assessment projects peak demand rising from about 14.2 GW in 2026 to more than 20 GW by 2032, an increase of more than 40%.
Who is building the plants?
Invenergy is developing both Foundry Ridge and Red Oak Ridge as merchant generation projects.
Will We Energies own the plants?
We Energies has applied to acquire the projects, but the acquisition process is separate from the PSC's October 15 construction approvals.
How much are the proposed acquisitions and construction expected to cost?
We Energies' filings estimate approximately $564.2 million for Foundry Ridge and $1.77 billion for Red Oak Ridge, totaling about $2.33 billion.
When will the plants begin operating?
Foundry Ridge is expected to enter service in 2028, while Red Oak Ridge is expected around 2030.
EIA: Natural Gas Demand Grows With Data Centers and LNG
Chevron Signs 20-Year Gas Power Deal With Microsoft
ExxonMobil Plans Gas-Fired Power Plant for Data Centers
UGI Plans Gas Infrastructure for Pennsylvania Data Center
U.S. Natural Gas Output and Demand to Hit New Records
Sources: Public Service Commission of Wisconsin; Invenergy; Wisconsin Electric Power Company; University of Wisconsin-Madison.
