Democrats See Opening In Long-Red Seat Over Data Center Tax Breaks

Members of the western Wisconsin community advocacy group GROWW hold a rally in River Falls, Wis. on Sept. 23, 2026, protesting a 2023 tax break, which has since spurred a data center building boom in Wisconsin. The event focused on 30th Assembly District Republican Incumbent Shannon Zimmerman, who authored the legislation. Rich Kremer/WPR

Democrats trying to flip a Wisconsin Assembly seat long held by Republicans are hoping anti-data center sentiment will help them oust a GOP incumbent they call the “architect” of tax breaks helping drive a data center building boom in Wisconsin.

Republican Assemblyman Shannon Zimmerman has held the 30th District for a decade. He says Democrats are trying to mislead voters, but Democratic challenger Kevin Knoke says Zimmerman is an AI executive with a conflict of interest.

The sounds of speeches and the occasional chants of opposition to AI data center development and the state tax break for the industry echoed from the small Veterans Park in Downtown River Falls on a warm, sunny Wednesday evening. The 50 or so people were members of the western Wisconsin grassroots activism group called GROWW and they held signs that read “No Blank Checks For Big Tech” and “No Deals Behind Closed Doors.”

The rally was aimed squarely at Zimmerman, R-River Falls, who authored legislation resulting in a tax exemption for the data center equipment and software. The Wisconsin Department of Revenue has estimated the tax exemption would cut an estimated $1.6 billion from the state’s coffers.

“AI data centers are not only extracting water, but they’re also extracting wealth from our communities that could be invested into the things that real people need in their lives,” GROWW co-executive Director Bill Hogseth told the crowd before encouraging them to support Zimmerman’s Democratic challenger, Knoke, who was standing in the audience.

Zimmerman’s 2023 bill had backing from Microsoft, business groups and several utilities that would be selling massive amounts of electricity to data centers. It even garnered some Democratic votes, but it never cleared the Legislature. Instead, the bill’s language was included in that year’s state budget, which was signed by Democratic Gov. Tony Evers.

Wisconsin has seen a data center building boom since the tax breaks were enacted, which has given rise to a surge of opposition from communities around the state. In an interview with WPR, Knoke said the high cost of gas, groceries and housing are top of mind for voters he’s talked to, but they’re also concerned about data centers looking to build in the 30th District.

“One thing I can tell you right away is, I am not interested in tax giveaways to corporations,” said Knoke. “They need to pay their fair share.”

30th Assembly District Democratic candidate Kevin Knoke mingles with the crowd at a Sept. 23 rally in River Falls opposing a 2023 data center tax break authored by Republican state Rep. Shannon Zimmerman. Rich Kremer/WPR

Knoke has been accusing Zimmerman of having a data center conflict of interest because the lawmaker’s job history shows he’s held two executive positions with AI companies that could benefit from the tax breaks. Knoke said he’s not proposing an outright data center ban, but the state has to be careful.

“We’ve got to move incredibly slow,” said Knoke. “I want to see that there’s ratepayer protections. I want to see that there are environmental protections. I want to see that there’s transparency, and most importantly, I want to see that there’s accountability. I want to know that these places are going to be held accountable for everything that they do.”

In an emailed statement sent to WPR, Zimmerman said the criticisms from Knoke and fellow Democrats are “political fodder in a desperate act to mislead voters on a topic that is hyper political.” He said he started a tech business in River Falls 20 years ago and Knoke can’t prove a conflict of interest “because it simply is not true.”

“My opponent is losing so he must now invent a narrative to scare voters,” Zimmerman wrote. “The original sales and use tax exemption is a long-standing economic practice used to drive major investment into WI. Gov Evers signed it. It was bipartisan. Evolving from that, for those who expressed concerns, I responded as the author of AB840. It specifically addresses energy, water, land and taxpayer concerns.”

Rep. Shannon Zimmerman listens with other legislators during a Joint Finance Committee public hearing Wednesday, April 12, 2023, at the Wilderness Resort in Wisconsin Dells, Wis. Angela Major/WPR

Zimmerman’s bill sought to require the Wisconsin Public Service Commission to ensure costs of upgrading electrical grids were not passed on to residential customers and require data centers to report how much water they use and set money aside for reclaiming land after the facilities close. The bill passed the Assembly with the help of just three Democrats, but died in the Senate.

This year, the Public Service Commission took matters into its own hands by modifying a proposal from We Energies setting electric rates for data center-scale customers. At the time, the commission said the changes were meant to protect residential ratepayers and ensure data centers pay their own way.

As public opposition to data centers has grown, Republican and Democratic candidates have been accusing each other of cozying up to big tech. Whether that line of attack on Zimmerman will help Knoke flip the Assembly seat is an open question, as Democrats have been unable to win the 30th District since 1977.

Democrats hope data center opposition will help flip Assembly district held by GOP since 1970s was originally published by Wisconsin Public Radio.