THU AM News: Panel explores energy challenges, opportunities linked to data centers; Filmmakers advocate for state tax incentive to support their industry

May 8, 2025

— The energy grid challenge posed by more data centers coming online presents an opportunity to accelerate new technologies in this space, according to former state PSC Commissioner Tyler Huebner.

Huebner, who now works for Google’s energy market development team, was a featured speaker at this week’s Customers First Coalition 2025 Power Breakfast in Madison.

The discussion focused on the rising demand impact of new data centers being built across the country, including in Wisconsin. Huebner said projects like these bring “a lot of job creation, a lot of economic benefit, tax base benefit” for the communities where they’re located. But those benefits are paired with a substantial need for energy, with one “hyperscale” datacenter being comparable to adding an entire city to the grid in some cases.

Kari Valley, senior director of state policy and strategy at the Midcontinent Independent System Operator, noted MISO’s coverage area has seen little load growth over the past two decades. Over the next 20 years, the energy load is expected to rise by about 2.6% per year, resulting in a more than 60% increase over that period, she said during the event.

“So a whole different picture than we’ve looked at before … looking at novel, creative, complex solutions to these problems,” she said. “These are not easy to solve. They vary by area, type of addition. So we’re looking at all of those factors in terms of what framework is needed to support that, and answering to the needs of the footprint.”

Huebner pointed to geothermal energy and small modular reactors, or SMRs, as exciting prospects for this space. These smaller nuclear reactors are being developed as an alternative to the much more expensive tradtional nuclear plants, as they can be deployed to in-demand locations after being built in a factory elsewhere.

“How do we continue to kind of pull and accelerate some of these ideas that people have been talking about for a long time, and how do we scale them,” he said, noting Google is investing in improving energy efficiency and weatherization to maximize the potential of the existing transmission grid. “The grid is a constraint now. Getting power is a constraint. How flexible can we be?”

Meanwhile, WEC Energy Group Executive Vice President of External Affairs Robert Garvin touted the state’s attractiveness to data center developers, saying “this is fantastic” that utilities in Wisconsin are seeing this level of interest in companies developing “hyperscale” projects.

Garvin said data center developers — such as Microsoft and Cloverleaf in Port Washington, both within the service area for the utility’s subsidiaries in the state — are prioritizing speed to market, reliability and cost for new projects.

“We have very suitable sites, like I’d mentioned, good infrastructure and a predictable regulatory environment, which are all attributes which I think have helped us,” Garvin said.

Watch the video.

— Wisconsin filmmakers told lawmakers that having a tax incentive to make films in the state would have a positive cultural and economic impact.

“To tell the stories that I want to tell, I have to go out of state to do it,” Hayden Mauk, an executive producer from Middleton, said. “I would like to tell more stories here in Wisconsin.”

The Assembly Ways and Means Committee yesterday heard testimony on AB 231, which would create the State Film Office and a tax credit incentive for producing films in Wisconsin.

Under the bill, film production companies could apply for a credit equal to 30% of the costs for salary or wages of Wisconsin residents paid to produce a film, video, broadcast advertisement or television production in the state. The bill would also allow a credit for 30% of production expenditures or 30% for the sales and use tax to establish a production company in the state.

The credit for any one company could not exceed $1 million, and the total money spent in credits could not exceed $10 million per year.

Mauk said when he films in local communities, he likes to bring his crew to support local businesses, and he’d like to do that in Wisconsin.

Bill author Rep. Dave Armstrong, R-Rice Lake, told the committee the bill would bring more revenue to the state and boost tourism spending. He said there would be “direct and indirect benefits to the Wisconsin economy.”

Chair Rep. Jerry O’Connor, R-Fond du Lac, agreed this is a good idea to incentivize film production in Wisconsin.

“We really need to do this,” O’Connor said. “This is almost like free money.”

Stacy Nash, a documentary filmmaker based in Milwaukee, also expressed frustration with the lack of tax incentives for Wisconsin films. Nash said she’s worked on films across the country, and Wisconsin is one of few states that doesn’t have a tax incentive.

“I can’t tell you how frustrating it is to watch that work go elsewhere, when it could be made here,” Nash said.

Nash added that the state has “everything we need” for great films, including trees, lakes, downtowns, talent and motivation, Wisconsin just needs the infrastructure in a film office that provides support and guidance for filmmakers.

Gov. Tony Evers made a similar proposal in his budget. Under his proposal, the film production company may claim a tax credit equal to 25% of the wages or salaries paid to Wisconsin employees to produce the film. He also includes a total cap at $10 million and a $1 million limit for any individual applicant.

Armstrong told WisPolitics he brought the bill forward again after introducing it too late last session for full consideration. Armstrong said last year’s version of the bill asked for a 25% credit, but after looking at other state’s policies, 30% would put Wisconsin in the top 10 for film tax credits.

Armstrong said he’d like the credit as a standalone bill so it isn’t removed from the budget as part of the Joint Finance Committee process.

Still, Armstrong said he’s seen bipartisan support for the bill, and he expects Evers to sign it if it makes it through the Legislature.

— The Assembly co-author of legislation to create a new tax credit for the video gaming industry says changes are in the works to fine tune the proposal so it targets new employees hired in Wisconsin.

AB 204 was drafted to create a credit equal to 30% of the wages paid, as well as the eligible expenditures related to developing, producing or creating a video game product.

Rep. Ben DeSmidt, D-Kenosha, raised concerns in a public hearing yesterday that the bill as written would make those credits “stackable,” leading to companies getting a break equal to 60% of their main costs.

“It seems pretty extreme,” DeSmidt said during the Science, Technology and AI Committee hearing.

DeSmidt added other small businesses would love to see a similar credit.

GOP Rep. Clint Moses, the bill’s co-author, argued the proposal was worth the expense considering the potential to draw more of the industry to Wisconsin.

Andrew O’Connor, the director of state government affairs for the Entertainment Software Association, testified separately to the committee that 44% of jobs in the video gaming industry are located in California. Add in Washington, Texas, New York and Florida, and that rises to 72%.

Still, he pointed out Wisconsin has 36 software companies, along with eight college programs that teach gaming development. He said the industry had $486.6 million in economic impact in Wisconsin last year with $12.6 million in state revenue generated off that.

Moses, R-Menomonie, testified later that his intent wasn’t to allow companies to claim credits for both their wages and capital costs. A coming amendment will narrow the bill to only 30% of wages for new employees based in Wisconsin.

He also told the committee changes were coming to address concerns the credit could be claimed for products or platforms for gambling machines.

— SHINE Technologies has announced a “definitive agreement” to acquire a business called SPECT from Lantheus, a Massachusetts radiopharmaceutical company.

The Janesville nuclear technology company plans to acquire part of Lantheus’ campus that manufactures its SPECT products, which include imaging agents for the heart, lungs, bladder and other organs.

The announcement references the importance of Lantheus’ established market channels, as the company has been providing diagnostic products for nearly 70 years. It’s a “market leader” for domestic production of a medical isotope called technetium-99, the release notes.

Greg Piefer, founder and CEO of SHINE, says the acquisition marks a “major milestone” for the company.

“By integrating Lantheus’ SPECT business and talented team with our company, we will expand our product portfolio, accelerate our path to market for our planned suite of isotopes and increase our market share — ultimately ensuring greater access to these life-saving products for patients,” he said in a statement.

Financial details of the acquisition were not disclosed, but a SHINE spokesperson said the transaction has been approved by both companies’ boards and is expected to close by the end of the year.

See the release and a recent story on SHINE.

Check out an earlier podcast with Piefer.

— The FDA has granted “fast track” designation to speed up development of a new cell therapy for radiation-induced dry mouth.

UW-Madison’s School of Medicine and Public Health yesterday announced the FDA designation for the therapy, which was created by the Program for Advanced Cell Therapy, an effort of the school and UW Health.

It’s currently being studied in a Phase 1 clinical trial at the Carbone Cancer Center in Madison, focused on the treatment of xerostomia, commonly called dry mouth. This condition is a long-term side effect of radiation therapy for head and neck cancer, according to the university, and can create challenges with eating, speaking, sleeping, dental health and more.

Dr. Randy Kimple, a professor of human oncology with the UW SMPH, says the FDA’s designation “underscores the urgent need for new therapies in the field of radiation injury” while validating this specific drug.

“This regulatory milestone accelerates our path toward delivering transformative care for patients suffering from chronic xerostomia,” he said in a statement.

The FDA’s fast track program is meant to “get important new drugs to the patient earlier,” with a focus on unmet medical needs, according to the agency’s website. Under the accelerated pathway, drug developers can get more frequent meetings with the agency as well as “priority review” for certain applications needed for going to market, the announcement notes.

The designation comes after the FDA in 2020 issued an investigational new drug license to launch the clinical trial, which aims to enroll 30 patients by this fall.

See the release.

For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com.

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