Push back against private equity–backed data centers

A new analysis from Truthout examines how grassroots organizers in Wisconsin successfully pushed back against a proposed data center backed by private equity, offering a model for communities nationwide facing similar projects. The story focuses on local resistance to a massive data center proposed by QTS, a Blackstone-owned company, and situates that fight within a much broader, private equity–driven data center boom that is reshaping local economies, energy systems, and utility costs.

The article highlights how residents in DeForest, Wisconsin organized across political lines to oppose a 1,600-acre data center project, citing concerns about water use, pollution, noise, land use, and rising electricity bills. Their campaign ultimately succeeded when local officials unanimously rejected the annexation required for the project, forcing the developer to withdraw its proposal. Truthout notes that similar fights are unfolding across the country as communities respond to an accelerating wave of data center construction fueled by Wall Street capital.

That surge is driven in large part by private equity. As documented in From Power Plants to Processors, private equity firms have been pouring record amounts of capital into the digital sector, investing in over 450 data center companies since January 2022, spending nearly $200 billion on data center deals, and accounting for 80 to 90 percent of completed mergers and acquisitions in data center-related industries over the past three years. Because of the AI boom, data center infrastructure and power generation appear to be in high demand among investors, spurring acquisitions of existing power plants, cancellations of planned coal and gas retirements, proposals for new power plants, and even acquisitions of vertically integrated retail energy utilities.

Truthout connects the Wisconsin fight to this larger pattern, quoting Amanda Mendoza, senior research and campaign coordinator on climate at the Private Equity Stakeholder Project, on how deeply private equity is embedded in the buildout. “Private equity firms are getting involved in multiple spots across the whole value chain of AI infrastructure and the data center boom,” Mendoza said.

The story also underscores how utility customers are often left bearing the costs. As Mendoza explained, “Private equity firms are investing heavily along the whole AI supply chain.” Analysts warn that private equity takeovers of utilities serving data centers will generate higher electric bills for consumers. “They’re going to raise rates on ordinary people who need electricity,” Mendoza said. “They’ll profit off them while raking in more money supplying data centers as well.”

Those dynamics are already visible nationwide. While the long-term profitability and feasibility of large-scale data center expansion remain speculative, the environmental impacts and social costs of data centers are clear and already happening. Data centers require large swaths of land, enormous amounts of electricity and water, and contribute to air and noise pollution that affect nearby communities. In areas with significant data center activity, electricity prices have spiked dramatically, and concerns that those costs will be passed on to ratepayers are driving community resistance, regulatory challenges, and new legislative efforts.

Truthout emphasizes that the Wisconsin victory is not an isolated case, but part of a growing national movement. Organized opposition has already delayed or blocked tens of billions of dollars in data center projects, demonstrating that local action can slow or stop developments backed by some of the most powerful financial firms in the world. As private equity continues positioning itself to profit not only from data centers but also from the power plants and utilities that feed them, the DeForest campaign offers a blueprint for communities seeking to protect their resources, public services, and energy affordability .