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Before the meeting, city residents and members of a local group, The Party for Socialism & Liberation, demonstrated outside City Hall. Members of the Party for Socialism & Liberation wore red, held signs and chanted protests against the proposed development.

One city resident said she believes the council needs to consider how it makes major decisions that will affect Janesville and neighboring communities.

“Transparency is not just a checkbox,” she said. “It’s the foundation of trust between our elected officials and the people they represent. And when residents see information withheld, meetings held in closed session or requests for public records ignored or delayed, that trust is eroding.”

Cassandra Pope, organizer of the “No Janesville Data Center” group, said her biggest concern is the growing body of research about health risks in cities that have hosted data centers. She urged city council members to “do better.”

“They are finally breathing fresh air after over a century of air pollution from GM,” she said. “We should want that and better for them, just like I would want that for all of you. The middle of residential neighborhoods is not the right place for an industrial park or a data center.”

Many demonstrators expressed concerns about the potential environmental impact of a data center, what they described as a lack of transparency from the city, and the initial review of the data center proposals under nondisclosure agreements.

They also called for the issue to be placed as a referendum on the April ballot and for the city to host town halls to keep public education and involvement at the center of the discussion.

City response

City officials, meanwhile, are pushing back against criticism over transparency, emphasizing that the process remains in its early stages and that no decisions have been made.

During an interview ahead of Monday’s meeting, City Manager Kevin Lahner and Economic Development Director Jimsi Kuborn said the city followed its standard procedures after being approached by data center developers interested in the site. The council directed staff to explore proposals and issue a request for proposals, which resulted in two submissions from potential data center developers.

“This is a process, and I am a firm believer in the process,” Lahner said. “We are very, very early in a long process. We’ve made no commitments beyond the fact that we’re thinking about it.”

Both proposals are subject to nondisclosure agreements — a standard economic development practice meant to protect trade secrets and financial details during negotiations, officials said. Lahner acknowledged public frustration about the lack of information but said confidentiality is required until the city and a developer reach a “letter of intent.”

A letter of intent, Lahner explained, is a non-binding agreement that outlines the framework for continued discussions and is not a finalized deal.

“At any point, either side could walk away,” he said.

Lahner said the nondisclosure agreements protect companies’ competitive advantages and trade secrets, as well as prevent premature release of sensitive information such as proposed land sale prices.

Kuborn said the RFP process helped identify experienced development teams capable of handling a brownfield site — land that requires extensive environmental remediation due to past industrial use.

The former GM property spans about 250 acres and poses significant cleanup and demolition costs, which city officials said limit the feasibility of other uses such as large-scale housing or park space.

“We have to have something that helps pay for it,” Lahner said. “At the end of the day, it may not be a data center there, but it’s going to have to be a development that creates substantial value.”

Lahner also sought to address misconceptions about data centers, including concerns about energy use, water consumption and environmental impact.

He said the proposed facility would consume around 250 megawatts of power — more than the GM plant once did — but that infrastructure and power costs would be covered entirely by the end user, not local residents.

As part of the process, Alliant Energy would have to commit to providing power to the data centers and upgrade the grid as needed, Lahner said.

He noted that the local grid would not be strained because of the Midcontinent Independent System Operator (MISO) network, which allows power to be supplied across a wide regional system from Louisiana to Canada.

Modern data centers, Lahner added, typically use quieter, air-cooled systems and aim for carbon neutrality through renewable energy investments. He said expected noise levels would range from 50 to 70 decibels and that the average daily water usage — about 80,000 gallons — is comparable to a mid-sized dairy farm or craft brewery.

“This is a growing industry,” Kuborn said. “As we continue to use technology, from cell phones to electric cars, data centers are going to be needed.”

“They’re coming to Wisconsin whether it’s Janesville or somewhere else,” Lahner added.

City officials reiterated that the city council did not take any action during Monday’s closed session, which was intended only to provide an update on the evaluation process. Any decisions related to the site will be made during an open session at a future meeting.

“We’ll give the public plenty of time to review and analyze whatever comes forward,” Lahner said. “Right now, we’re at half of step one.”

Kuborn said the council’s initial plan focused on securing an EPA grant that would utilize a small portion of the JATCO site. If the council ultimately approves a data center, that would not mean the entire 250 acres becomes a data center, she said.

Working with the 11-member GM/JATCO Redevelopment Advisory Board that was created in August, Kuborn said the redevelopment plan still includes opportunities for other uses on cleaner portions of the site.

“That could include things like a community center, community assets, walking paths and commercial uses,” he said. “We’re going to work with the community to come up with a redevelopment plan.”

Lahner added that ideas such as solar fields, fairgrounds or racetracks would not allow the city to recoup the costs already invested in making the property viable for redevelopment.