Developer Plans to Build an AI Computing Facility in Wisconsin Rapids

Tuesday, January 28th, 2025 -- 10:00 AM

(Caitlin Shuda, Wisconsin Rapids Daily Tribune) A developer has plans to build an artificial intelligence computing facility in Wisconsin Rapids, according to Caitlin Shuda with the Wisconsin Rapids Daily Tribune.

According to a press release from Digital Power Optimization Inc. on PR Newswire, the developer and operator of power-dense data centers has secured a land lease with Consolidated Water Power Company, a subsidiary of Billerud, and plans to develop a $200 million facility capable of up to 20 megawatts of AI computing.

Andrew Webber, the founder and CEO of Digital Power Optimization, told a Daily Tribune reporter Monday afternoon the development will be a "power-dense data center" designed for artificial intelligence computing operations.

The partnership with CWPCo includes a land lease for up to 50 years, interconnection rights to an existing and energized substation and access to a power supply. CWPCo operates 32 megawatts of hydroelectric power within its system.

Mayor Matt Zacher confirmed to a Daily Tribune reporter Monday morning the development will be on a 15-acre parcel owned by CWPCo west of State 34, close to the Wisconsin Water Quality Center purchased by ND Paper last year.

The site where DPO plans to build its facility is adjacent to 220 acres of land that is still available for redevelopment that was formerly part of the paper mill property.

Webber told the Daily Tribune DPO will lease about 6 acres of vacant land of the 15-acre parcel owned by CWPCo. Webber clarified the development is not on the Billerud paper mill site.

Kyle Kearns, the city’s director of community development, told a Daily Tribune reporter Monday morning DPO reached out about a year and a half ago, looking at CWPCo's available power for opportunities to use for AI.

Kearns said CWPCo had powered the entire paper mill, and without the facility running in its full capacity, there has been a lot of excess power available.

Running artificial intelligence demands a lot of power, Kearns said, so companies involved with AI are looking at where they can buy a lot of power, especially if more affordable power is available.

Renewable and green power like the hydroelectric power from CWPCo is also a benefit, as well, so Wisconsin Rapids was a good option for DPO, Kearns said.

Webber said DPO works with a number of power companies, including regulated utilities, power cooperatives, independent power producers, and other companies, and DPO has multiple other projects around the country in various stages of pre-development.

As DPO discussed the potential facility with CWPCo leaders, Webber said the company found the situation to be a win-win. The partnership allows DPO to grow its data centers while paying to use CWPCo's system.

The partnership will also allow CWPCo to maintain its hydroelectric projects and cover some fixed costs, as well, Webber said. Kearns said most of the $200 million investment will be toward the computers inside the building rather than the cost of construction.

Renderings show plans for a few small buildings to be built in pods with additional infrastructure like backup generators, he said. Webber told the Daily Tribune once construction plans are complete and building permits are secured, DPO plans to start construction later this year with "initial energization" starting in 2026.

On the construction end, Webber said DPO expects to create more than 100 on-site jobs between 2025 and 2026. Many of those positions will include electricians and other tradespeople, he said.

Long-term, Webber said he expects to create 12-20 full-time employees at the facility when it's open. Jobs will include operations, maintenance, security and IT management, he said.

Feel free to contact us with questions and/or comments.