Oct 15, 2026, 8:24 PM CT
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WISCONSIN RAPIDS, Wis. — The Wisconsin Rapids Common Council could decide the future of a proposed AI data center October 20, following a recommendation to deny the developer's permit application.
PNK Group USA wants to build the data center on approximately 209 acres at the Papermill Redevelopment site, 950 Fourth Avenue North. The project would include renovating an existing building and constructing four new buildings, totaling about 1.2 million square feet, with an estimated electricity demand of 150 megawatts.
The city's Planning Commission voted 7-0 on September 16 to recommend denying the application, citing missing information about electrical utility approvals, staffing plans, construction traffic and building layouts.
PNK Group disputes those findings, saying it answered the city's questions before the vote. The city's written staff review covered materials submitted through August 26, and additional documents provided after that date were not included in the report.
"We disagree with the conclusion that the project record was insufficient to move forward," the developer said in a statement released before the city's October 5 moratorium vote. "PNK Group submitted the responses to all City staff queries well before the decision was made. Those later materials were not incorporated into the written staff review."
The company says it has since combined its application and supporting documents into an updated package and wants the city to review that information before making a final decision.
A 12-month moratorium on new data center developments took effect October 9, following months of public opposition and concerns about how these facilities could affect the community.
The moratorium gives city officials time to review zoning rules and address three main concerns: ratepayer equity, public health and public safety. Residents and community groups, including South Wood County Neighbors for Responsible Development, have raised questions about higher utility bills, constant noise from cooling equipment, water use and whether local infrastructure can handle a project of this size.
PNK Group says the facility would use a closed-loop cooling system and include measures to reduce noise. Opponents have questioned whether the developer has provided enough information to support those claims.
Because PNK Group submitted its permit application before the moratorium took effect, the new restrictions do not automatically stop the project.
The developer says the project would bring jobs and new investment to the former paper mill property. PNK Group has also proposed a $5.7 million Community Benefit Plan, which it outlined during an August webinar.
The proposal includes $3 million for public waterfront access, $1.4 million for emergency response services, $800,000 for workforce training and $500,000 for river protection and conservation.
Those investments are not part of a finalized, legally binding agreement. The city says a Community Benefits Agreement could be negotiated if the project moves forward and has emphasized that Wisconsin Rapids has not entered into a legal or financial partnership with the developer.
In a video posted to his official Facebook page, Wisconsin Rapids Mayor Matt Zacher said the October 20 council meeting will not include another public hearing on the proposal. The earlier hearing is closed, but council members will review the Planning Commission's recommendation, hear from city staff and have an opportunity to question the developer before voting.
"The council has the ability to ask questions directly to the applicant, just for clarification of what happened, what the information they got in during the public hearing," Zacher said.
The Common Council meeting begins at 6 p.m. Tuesday, October 20, at Wisconsin Rapids Area Middle School, 1921 27th Avenue South. Doors open at 5:30 p.m.
