A proposal to build a massive $1.6 billion data-center campus on roughly 320 acres of farmland outside Menomonie, Wisconsin, has triggered a wave of public debate: excitement about big investment and tax revenue on one side, and alarm over water, energy, environmental, and transparency concerns on the other. The city has already annexed and rezoned the site, but the developer and many technical details remain opaque, and that uncertainty is fueling community resistance.
What’s being proposed
City documents and press coverage say a Delaware company called Balloonist, LLC has brought a potential buyer/operator to the community; the project is pitched as a hyperscale data center with about a $1.6 billion build cost on a roughly 320-acre site north of I-94. The city’s FAQ sheet says the build could create up to 1,000 construction jobs over several years and 50–75 permanent full-time positions, many described as “six-figure jobs.” The city also estimates the facility could use roughly 75,000 gallons of water per day for cooling — a figure that has become one of the central flashpoints in public discussion.
Public reception: divided — and increasingly vocal
Public reaction has been intense. Supporters point to the potential economic upside: a large capital infusion, new tax base that could improve the city’s credit rating, and short-term construction employment. Opponents say the benefits are overstated and the costs — to water resources, farmland, local character and the environment — aren’t quantified or guaranteed.
Residents and advocacy groups have organized rapidly. A Facebook group called “Stop the Menomonie Data Center” has gathered thousands of members, and dozens of citizens turned out to protest and question the plan at council meetings after the city approved annexation and rezoning in August. Some Menomonie officials have publicly urged caution and better public information; several council members have said they don’t yet know the identity of the operating company or its full plans.
Main concerns from neighbors and environmental advocates
Water use and local supply
Cooling large data halls can require substantial water — and where water comes from is the crux of the worry. The city’s FAQ cites the ~75,000 gallons/day number for this proposal; national reporting and academic studies show that hyperscale data centers can, depending on cooling technology, consume very large quantities of water (from tens of thousands to millions of gallons per day for the largest facilities). Locals worry that drawing large volumes of freshwater will strain wells, impact agriculture and alter groundwater or stream flows important to local wetlands and ecosystems.
Energy, grid strain and higher rates
Data centers are electricity-hungry. Although Menomonie does not operate its own electric utility, the city has said the developer is working with Xcel Energy and the Public Service Commission on supply and infrastructure. Residents worry transmission upgrades and added demand could raise regional electricity costs or complicate service reliability, and they want clarity about who pays for new lines or substations.
Loss of farmland, wildlife habitat and local character
Converting 320 acres of farmland and open space into an industrial campus will change land use, remove agricultural productivity, and bring a very different landscape and light/noise profile to a largely rural-suburban area. For many opponents, the project is emblematic of a broader tension between rapid tech-sector expansion and preserving local ways of life.
Opacity and governance
A subset of the opposition is focused on process: some residents say the city signed nondisclosure agreements and moved quickly to annex and rezone the land before the public could see company plans. That lack of transparency — and the fact the ultimate operator hasn’t publicly been named — has eroded trust. The annexation and rezoning ordinance passed by the Common Council was contentious (reported votes vary by outlet), leaving some residents feeling the decision was rushed.
Economic arguments for and against
Proponents point to direct fiscal benefits: the city’s FAQ suggests the new tax base could improve Menomonie’s fiscal metrics and potentially reduce taxpayers’ burden over time; the scale of investment could also attract suppliers and boost local service businesses during construction. Some economic development advocates argue that modern infrastructure projects like data centers can anchor future technology and energy investments.
Skeptics counter that many of the best-paid jobs will be filled by non-local specialists, permanent employment numbers are modest relative to the land footprint, and construction-phase hiring is temporary. They also warn that long-term costs — higher utility infrastructure bills, environmental mitigation, or lost agricultural tax revenue and ecosystem services — may offset the upside. The exact fiscal calculus depends on tax agreements, PILOTs (payments in lieu of taxes), and who funds off-site infrastructure upgrades.
Biosphere and ecological implications
Beyond water and energy, large data-center campuses can contribute to habitat fragmentation, soil sealing, and localized heat effects (impervious surfaces and mechanical cooling reject heat to the surrounding air). The choice of cooling technology matters: air-cooled, closed-loop systems use far less water than open evaporative systems, while reuse of waste heat or investments in renewable power can limit greenhouse gas impacts — but companies use different solutions, and those details are not yet public for Menomonie. National research shows data centers account for a measurable portion of power-sector emissions and can have significant water footprints absent mitigation.
What happens next
Although the city has rezoned the parcel to a restricted industrial classification, the project still needs site plans, building permits, utility agreements and environmental reviews before construction could begin. The developer must resolve energy sourcing with utilities and likely needs approvals or certificates for major transmission work. Citizens can continue to press for environmental studies, binding water-use limits, community benefit agreements, and public disclosure of the project operator and technical plans.
Bottom line
Menomonie faces a familiar — and difficult — calculus: a potentially transformative private investment promising jobs and tax revenue versus legitimate concerns about water, energy, farmland, wildlife and local control. The scale of the project and the early secrecy around the applicant have made public trust the central battleground. How city leaders, utilities and the developer address the technical and environmental questions — and whether negotiable community benefits are offered — will largely determine whether the project is perceived as an economic opportunity or a risky industrial imposition on Menomonie’s landscape and biosphere.
Please note: Any opinions discussed in this article belong solely to the author, Marissa Berends, and do not necessarily reflect the views of Capitol Lien.
About the Author
Marissa Berends is a Certified Abstractor and Industry Relations Coordinator at Capitol Lien, a nationwide due diligence and risk mitigation services provider. Since joining the company in September 2021, she has earned abstractor certifications in Minnesota, Nebraska, and North Dakota. She is pursuing her Wisconsin Title Examiner certification, which is expected to be completed in Fall 2025.
Marissa is involved with the following groups: Wisconsin Land Title Association’s (WLTA) Convention Committee & Young Title Professionals; Nebraska Land Title Association’s (NLTA) Convention Committee; Property Record Industry Association (PRIA) National Education Committee; Illinois Land Title Association’s (ILTA) Inclusion, Diversity, Equity & Acceptance (IDEA) Committee; and the National Association of Land Title Examiners and Abstractors (NALTEA).
About Capitol Lien
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Sources:
City of Menomonie: Proposed Data Center Project – Frequently Asked Questions
Data Center Dynamics: Menomonie City Council approves land rezone for data center in Red Cedar, Wisconsin
WPR: $1.6B data center proposed in Menomonie draws strong response from concerned citizens
WEAU 13 News: Menomonie City Council members emphasize no decision has been made on proposed data center
Environmental and Energy Study Institute: Data Centers and Water Consumption
Fox Business: Mystery company’s $1.6B data center proposed for Wisconsin farmland draws residents’ ire
Menomonie News Net: Proposed Data Center
Berkeley Lab: The environmental footprint of data centers in the United States
Equinix: How Data Centers Use Water, and How We’re Working to Use Water Responsibly