Brownfield Data Centers Offer Jobs-and Risk Repeating Past Mistakes
The administration is backing a plan to convert contaminated industrial sites into data center campuses, framing it as economic renewal for cities hollowed by manufacturing losses. But the strategy faces growing local resistance that has derailed projects across Ohio, Virginia, and Arizona-and is becoming a flashpoint in midterm elections.
Developers are hunting for cheap land with water and power access. Brownfields and even Superfund sites fit the bill. The EPA pledged in January to expedite environmental reviews and provide remediation guidance, betting that billions in hyperscale investments can absorb cleanup costs.
Janesville's Test Case
Janesville, Wisconsin offers a concrete example. The city owns a former General Motors plant that employed 7,000 workers at its peak in the 1970s. The facility shut down during the Great Recession and sits contaminated with hydrocarbons, heavy metals, and "forever chemicals" from nearly a century of auto manufacturing.
Colorado-based Viridian Partners wants to buy the 800-megawatt data center site and cover a $30 million cleanup bill. The project would create roughly 600 permanent jobs and 13,000 construction jobs, according to Viridian's estimates. The International Brotherhood of Electrical Workers has endorsed it.
But skepticism runs deep. Cathy Erdman, a firefighter living a half-mile away, questions whether the project addresses the city's actual needs: housing shortages and missing grocery stores. She worries Janesville could become dependent on AI industry jobs the way it once relied on GM.
"I don't think all brownfields are created equal," Erdman said. "This particular brownfield is literally surrounded by thousands of people - folks whose property values may very well be impacted."
The Infrastructure Problem
The data center would consume as much electricity as all homes in the Milwaukee metro area. Viridian and partner Abbleby Strategy Group plan to work with local utilities on a new electrical substation and water upgrades.
Critics worry about electricity costs and emissions. We Energies has proposed two new natural gas peaking plants elsewhere in Wisconsin to handle data center demand. Even city officials want binding protections against price hikes.
"One of the most glaring needs that has not yet been addressed is statewide legislation to clarify that data centers pay for 100% of their costs," said Kevin Lahner, Janesville's city manager.
Data centers typically rely on diesel generators for backup power, which emit nitrogen oxides and other harmful pollutants. Viridian declined to answer questions about its plans.
Political Backlash
A November ballot initiative in Janesville seeks to block the project. At least two city council candidates are running against it. Ray Jewell, a pastor whose father worked at the GM plant, said environmental and health concerns drive his opposition.
Jewell has Parkinson's disease, and tinnitus-a symptom of his condition-makes him sensitive to the 24/7 noise data centers produce. A lifelong Republican, he said the project and AI concerns have pushed him to consider voting Democratic, citing state Assemblymember Francesca Hong, who has called for a data center moratorium.
A Broader Strategy
The Trump administration is promoting brownfield-to-data-center conversion nationally. The EPA has identified 335 languishing brownfields as potential data center sites. Many are in the Midwest, where cooler climates reduce cooling costs and tax breaks attract developers.
"Hyperscalers are targeting the Midwest, particularly Wisconsin, in part because cooler climates reduce cooling costs, which directly improves their margins," said Julia Towne, a research fellow on AI at the Nature Conservancy.
House Republicans introduced legislation to make corporate developers eligible for federal brownfields loans and grants and to exempt them from National Environmental Policy Act reviews. Data center companies argue brownfields offer an "ideal opportunity" for redevelopment and job creation.
The Cleanup Reality
Janesville's contamination stems from a technicality. GM should have paid for cleanup through a $773 million environmental trust after its bankruptcy, but the site didn't qualify. The property now contains polycyclic aromatic hydrocarbons, lead, arsenic, volatile organic compounds, and trace "forever chemicals."
Wisconsin's Department of Natural Resources would oversee cleanup. The state has successfully remediated dirtier sites, but the scale here is unusual-the footprint is enormous and sits near homes and the Rock River, requiring careful groundwater management.
The city originally applied for a $20 million EPA community change grant to explore sustainable redevelopment options. The Trump administration canceled that program, pushing Janesville toward the data center option.
"We view this as a responsibility to review the opportunity and weigh the risks, and that's what we're trying to do," Lahner said.
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