SHEBOYGAN, Wis. — Sheboygan residents are expressing concerns about a proposed warehouse development, despite city officials’ assurances that no plans for a data center exist.
KBC Advisors, a Seattle-based commercial real estate company, is looking to purchase just over 62 acres of land near the Stahl Road and Taylor Drive intersection at the SouthPointe Business Enterprise Campus.
In July, the city and KBC signed a letter of intent for a Class A logistics facility, which typically means a warehouse or hub for the distribution and storage of goods.
However, some residents, like Lisa Salgado, are skeptical about the true intentions behind the development.
"That will increase water demand out of Lake Michigan. It will definitely use massive amounts of electricity," Salgado said.
Salgado pointed to KBC's past work with companies such as Amazon and Microsoft as a red flag, noting that the company could potentially assign the property to other businesses without city permission.
"They are able to assign that property to anybody they want without asking permission of the city," she said.
The concerns intensified after the city conducted hydraulic testing at the site. Salgado questioned why there would be increased water demand for what is supposed to be a warehouse.
"So why is there a demand for more at that site? What business is going to go in there and use that amount of water? It doesn't sound like a warehouse to us," Salgado said.
Watch: Sheboygan residents raise concerns about speculated data center amid land deal; City denies data center
Mayor Ryan Sorenson addressed the speculation, explaining that the recent hydraulic test was routine maintenance that was overdue since 2017. He said the city was assessing water capacity to prepare for any company that might purchase land in the business park.
When asked directly if the development could become a data center, Sorenson said, "We're not signing an agreement for a data center for this parcel. This is not some kind of 'switcheroo, got ya' thing we're trying to do."
The mayor added that if proposals for a data center ever came through, the public approval process would start from the beginning.
Despite the mayor's assurances, residents remain cautious about the development.
"We hope we're wrong. We don't want a data center," Salgado said.
Data centers have become a contentious topic in Wisconsin recently, with large companies looking to purchase land in multiple cities, including Port Washington and Mount Pleasant. The facilities typically require significant amounts of electricity and water for cooling systems.
The next steps in the Sheboygan land deal are expected to come in late winter or early spring, according to the city.
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