We Energies Sued Over Outdated Contract with Microsoft for Data Center Power

We Energies, a Wisconsin-based utility company, has signed a 15-year contract with Microsoft for power supply to its Mount Pleasant data center. The contract includes outdated language limiting where new power plants serving the data center could be located.

The Public Service Commission of Wisconsin (PSC) had previously rejected this geographic restriction in May, allowing data centers to tap into wind energy from neighboring states.

We Energies claims that the commission's order will govern Microsoft's power purchases, not the outdated contract language. However, some observers question why We Energies asked Microsoft to sign an outdated version of the contract.

The issue dates back to disagreements between We Energies and PSC on a new rate structure for large data centers. The company argued that power plants should be located close to the data center to minimize grid failures, but critics pointed out that this would limit access to cheaper wind energy from neighboring states.