Plans for data center at former paper mill site come under fire
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Once the home of Wisconsin's largest paper mill, an empty lot's future is at the heart of the local debate over data centers.
The mill, which opened in 1894, was Wisconsin Rapids' largest employer and its identity for more than a century. It closed amid the pandemic in 2020 after years of decreasing demand for the specialty glossy magazine paper it produced. After failed attempts to restart it or find a buyer, it was torn down last year.
Now, the city has a new proposal for the 220-acre site: a data center.
But since the plan came forward, many residents have been vocal about their opposition to that idea.
"It's a prime spot," said Kaitlyn Federwitz, part of a group of residents opposed to the plan. "We're not surprised that they want to come here."
Located on the banks of the Wisconsin River, the paper mill was massive and employed hundreds. The site has connections to rail, electric, roads and other grids, according to the city.
"We are very aware that that land is zoned industrial," Federwitz said. "That land was polluted on for 100 years, so we understand it's not going to just be a park."
But Federwitz said the land has only been open for development for a year -- so she wonders why the city is looking at a data center before exhausting other options.
She's part of the South Wood County Neighbors for Responsible Development group, which has been organizing against the proposal. Federwitz says her group is trying to inform everyone of their options and talk to local leaders.
The local planning commission has a discussion on its agenda for reviewing zoning ordinances for data center land use, requested by Alder Madalyn Palmquist.
On Monday, the city announced that the meeting scheduled for that evening had been pushed back to 5:30 p.m. Monday, Aug. 10, at the Wisconsin Rapids Area Middle School auditorium.
Palmquist told WPR her request to revisit the data center ordinance is "forward-thinking" to further regulate data center development. She said it's important to have the discussion to ensure the community understands the possibilities and what regulations are needed for the specific mill site.
The meeting was initially scheduled only two days after the project developers had their own public information session in Wisconsin Rapids about the potential data center project.
Former New York City Mayor Eric Adams was present at the meeting, speaking in support of the project.
Federwitz said he was met with plenty of local opposition
"We want something that will create jobs," Federwitz told WPR. "I would say that a lot of people are very blanketly saying, 'no data centers.'"
Wisconsin Rapids Mayor Matt Zacher did not respond to a request for comment before deadline. In communications posted online, officials have stressed that no deal has been finalized.
"The City has not entered into any legal or financial partnership with any private business pursuing a data center project," Wisconsin Rapids wrote on its website.
Also, the city says they have not entered into any nondisclosure agreements over potential projects.
On their website, the city of Wisconsin Rapids said staff is still reviewing the project and gathering information.
The paper mill was one of the largest in the state and the first to use electric power. When it closed in 2020, almost a thousand people were left without jobs.
The site is currently owned by Capital Recovery Group, which markets the property privately, according to the city website.
The city said in December 2025, a potential data center proposal at the site came forward. Staff eventually learned it was PCH WI Holdings LLC.
PCH was registered in Wisconsin in January of this year with an agent office in Madison, and has a principal office on Fifth Avenue in New York City.
By the start of 2026, the city said there was increased interest in the site from the "data center industry, primarily due to the papermill's existing electrical capabilities and the former manufacturing use."
Meanwhile, the city of Wisconsin Rapids created an ordinance amendment about data centers, and the planning commission began discussing regulations for data centers in March.
In April, the Common Council voted unanimously to amend the city's zoning to include definitions and standards for data centers and accessory data centers.
The city's data center ordinance requires any future data center to be inside the industrial district of the mill site, according to the city. It limits how close the property can be to homes, water systems, discharging material and electric usage.
Eventually developers submitted a conditional use permit application, the city said.
For any business, including data centers, Wisconsin Rapids has an eight-step approval process involving permits, public hearings and reviews before construction, according to the city website.
"More complicated projects might require -- or give the City a chance to negotiate -- a Community Benefits Agreement (CBA), also called a developer's agreement," the city website states.
Opposition to data centers has been growing across Wisconsin, and Wisconsin Rapids has seen public concern about the data center.
Federwitz says the majority of people she knows are against the proposal, and have serious concerns about a data center going into the property.
A Change.org petition labeled, "Stop the data center in Wisconsin Rapids" had more than 3,380 signatures as of Aug. 3. A number of the signatures were placed around the weekend of the developer meeting with the public.
It goes on to note a number of common concerns about data center operations, mostly around water and quality of environmental control, and calls on the local government to take steps to preserving natural resources and alternative options.
"By signing this petition, you can urge decision-makers to cancel the data center project in Wisconsin Rapids, consider banning them all together," the petition states.
Multiple petition comments discuss needing to put citizen concerns first, pollution, sustainability concerns about the AI bubble and the impacts to local life.