Holgate - who was born around 20 miles from the Steel City in Doncaster, and progressed through the youth system at Barnsley before being signed by Everton - joined West Brom on a deal until the end of the season at the start of January.
But it is implied the 22-year-old was wanted to strengthen Wednesday's options in the right-back position, despite having spent much of his career in central defence.
The Owls appointed Steve Bruce as manager earlier this month, and the experienced boss is said to be seeking reinforcements either side of his centre-halves, despite the recent improvement shown by full-backs Liam Palmer and Morgan Fox.
Sheffield Wednesday have conceded twice in five games since they parted with previous manager, Jos Luhukay, with West Brom and Birmingham City the only sides to breach their back line.
But the Yorkshire outfit possess the Championship's third worst defence overall this season, having conceded 42 goals from their 26 matches.
Would the Everton man have been a good addition for the Owls?