Foxconn, Trump’s ‘America First’ Factory, is Moving to AI. It’s Giving Lawmakers Some Pause.

A Wisconsin plant that President Donald Trump and Republicans championed during his first administration is set to venture into building data centers with a new $569 million investment.

But members of Congress said the state should first address serious concerns from constituents about manufacturers’ energy and water use, which could strain existing infrastructure and leave consumers footing the bill.

“The average Wisconsinite should not have to subsidize the power or water for a commercial entity,” Rep. Derrick Van Orden said.

Foxconn, a Taiwanese company and one of the world’s largest electronics manufacturers, says it will create nearly 1,400 jobs in Racine County over the next four years, in exchange for up to $96 million in total performance-based tax credits. It’s the second amendment to the company’s contract with the Wisconsin Economic Development Corporation, after Foxconn dramatically rolled back its initial plan, proposed in 2017, to invest $10 billion and create as many as 13,000 jobs.

Sign Up for NOTUS’ Free Daily Newsletter

Foxconn had invested nearly $717 million by the end of last year, according to the WEDC.

The company’s original multibillion-dollar deal with Wisconsin was heralded as an “America First” achievement, complete with a White House rollout attended by former Speaker Paul Ryan and former Republican Gov. Scott Walker.

“The construction of this facility represents the return of LCD electronics and electronics manufacturing to the United States,” Trump said at the announcement in 2017.

However, Foxconn’s new investment will take Wisconsin — where Meta and Microsoft in the last several months have announced deals to build data centers — further into the AI economy.

Five days before Foxconn pledged new investments in Wisconsin in November, OpenAI announced it would “share insight into emerging hardware needs across the AI industry to help inform Foxconn’s design and development efforts for hardware to be manufactured at Foxconn’s U.S. facilities.”

Rep. Mark Pocan, whose district includes 11 Madison-based data centers, said the state’s growing data sector should be a wake up call to the Republican-led Congress.

“All the more reason Congress should get its act together, because we need to do the proper regulation that’s good on all fronts related to AI, and I feel like we’re not even crawling at this point,” Pocan said.

The House reconciliation bill included a provision to halt AI regulation by states for 10 years, but the Senate cut the language.

The question of who will pay for the new data centers’ anticipated energy and water consumption is becoming a major concern for lawmakers and constituents alike.

“I think if you’re going to have this data center, you are either going to — business is not going to like this — you’re either going to help pay for those utility rates [that] are rising, or you’re going to self-power,” Van Orden said.

Some Wisconsin residents have spoken out against data centers’ environmental impacts, including at small protests in seven cities across the state this week.

Just two major data centers slated for development alone, including the Microsoft project, would require the energy of 4.3 million homes, according to Clean Wisconsin, an advocacy organization that has criticized rising resource demands from the state’s data centers.

“The issue is we only have 2.8 million homes in Wisconsin,” said Amy Barrilleaux, a spokesperson for the organization.

Sen. Ron Johnson said that although the energy and water demands of data centers are ultimately a local permitting issue, constituents’ concerns are very real.

“I’d be concerned about that, as well,” Johnson said.

A petition to pause approvals of AI data centers until these issues are resolved got nearly 3,000 signatures since last week, Barrilleaux said, calling it a sign of the growing “frustration” from Wisconsinites over the state’s lack of transparency about how the centers will affect the energy system.

“If you’re in Wisconsin right now and probably a lot of states, you hear about a new AI data center development every couple of weeks. So it feels overwhelming,” Barrilleaux said. “It’s not just what’s happening on that Foxconn site.”

Sen. Tammy Baldwin pointed to public input processes taking place in local government.

“I want my constituents to get their questions answered before these projects move ahead,” Baldwin told NOTUS.

Reps. Glenn Grothman and Tony Wied declined to comment on the Foxconn plant. A spokesperson for Rep. Bryan Steil, whose district includes Racine County, did not immediately return a request for comment Thursday.