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On October 20, 2026, the city’s Common Council voted unanimously against the development permit, following concerns about the application and opposition from local residents. The Common Council voted 7-0 to reject the conditional use permit for the proposed hyperscale data centre, according to WXPR’s report. 21, 2020. Image Credit: Angela Major/WPR The proposal was submitted by PNK Group USA, which sought to redevelop approximately 209 acres of the former mill property at 950 Fourth Avenue North. The planned campus would cover around 1.2 million square feet, combining the renovation of an existing building with the construction of four additional buildings, according to Civic Media. The proposed facility was expected to require approximately 150 megawatts of electricity, making power supply an important consideration in the planning process.
As reported by Civic Media, the commission identified gaps relating to electrical utility approvals, staffing plans, construction traffic and building layouts. Wisconsin Rapids, a city in the US state of Wisconsin, has rejected a proposal to transform a former paper mill site into a large data centre, ending months of debate over the future of the property. The decision comes as the city implements a year-long moratorium on new data centre developments, giving officials time to review local rules before considering similar projects in the future. The project was planned for the site of the former paper mill, which had been a major part of the city’s economy for more than a century. Concerns centred on missing information and whether the developer had provided sufficient details to demonstrate that the proposal met the city’s requirements. The developer disputed the findings, maintaining that it had responded to the city’s questions. The Common Council’s final decision meant the application could not proceed under the proposed permit. It also reflected the wider debate about how the city should manage large technology developments and assess their potential effects on the surrounding community. Wisconsin Rapids residents Tanya Plantico(right) and Andy Martinez(left) fishing near the Verso paper mill on Sept. Plantico was surprised when she learned the mill was closing. The development was intended to accommodate large-scale computing operations, including those associated with artificial intelligence.
The decision followed an earlier recommendation from the city’s Planning Commission, which voted unanimously against the application in September.
The former paper mill became available for redevelopment
The mill opened in 1894 and became one of Wisconsin’s largest paper-making operations. However, declining demand for that product contributed to its closure in 2020, during the COVID-19 pandemic. The shutdown left nearly 1,000 people without jobs, marking a significant economic change for the city. Attempts to restart the mill or find a buyer were unsuccessful, and the industrial buildings were demolished in 2025. WPR reported that a data centre proposal first emerged in December 2025.
Because of the infrastructure already available at the industrial property, the location was attractive to developers. Because of its existing electrical capabilities and its previous industrial use, interest in the site grew partly.
The facility specialised in glossy magazine paper during its later years, according to WPR. Members of South Wood County Neighbors for Responsible Development organised against the development, attending meetings and working to prevent the project from moving forward, according to WXPR. Wisconsin Public Radio explained that the former mill had connections to electricity, roads, railways and other essential networks. However, the site’s industrial history did not guarantee approval for a new development. The application still had to satisfy the city’s planning requirements, while residents and officials sought greater clarity about the proposed facility and its potential long-term effects. The site has a long history in Wisconsin Rapids, where the paper industry shaped local employment and community identity. The cleared property subsequently became a potential site for redevelopment. its future became a source of disagreement Although the property offered an opportunity to attract new investment. Some residents wanted a development that would create employment while addressing local priorities, rather than automatically accepting a large data centre as the next use for the land. Opposition to the proposal developed over several months.
The group formed in April 2026, and its campaign continued through public meetings and discussions with local officials. Marissa Johnson, a member of the organisation, told WXPR that opposing the proposal had become a sustained effort over the preceding 6 months. Civic Media reported that PNK Group promoted the possibility of new jobs and investment, alongside a proposed $5.7 million community benefits plan. WXPR reported that Wisconsin Rapids introduced a one-year moratorium on October 9, 2026, with the option of extending it to 18 months.
Mayor Matt Zacher told WXPR that he was not opposed to all data centres but believed the city needed to take its time to ensure that developments were planned properly. Residents raised concerns about noise and the potential effects of increased electricity demand on local energy costs. Questions also arose about the project’s environmental implications and whether the information supplied by the developer was sufficient to assess its impact. The developer also held meetings to explain the proposed facility and outline its potential benefits. That plan included funding for public waterfront access, emergency response services, workforce training and river protection. The rejection of the permit comes alongside a separate decision to pause new data centre development. The restriction prevents new data centre proposals from proceeding while the moratorium remains in effect. City officials intend to use the period to review existing ordinances and determine whether additional rules are needed to assess future applications. He warned that a poorly designed facility could affect the community for decades. You use AI every day. Now get your AI Quotient. Take the AIQ test.