Wisconsin Town Votes to Require Public Approval for AI Data Center Tax Breaks
Port Washington residents approved a referendum Tuesday that requires city officials to obtain voter consent before granting tax incentives exceeding $10 million to developers. The measure passed with 66% support, making the Wisconsin town the first in the nation to restrict AI data center development through direct democracy.
The vote came after Vantage Data Centers announced plans in October for a $15 billion artificial intelligence campus in collaboration with OpenAI and Oracle. A grassroots organization called Great Lakes Neighbors United collected over 1,000 signatures to place the measure on the ballot.
What the referendum does and doesn't do
The measure will not block the existing Vantage Data Centers deal. Instead, it creates a procedural hurdle for future developers seeking similar tax packages, particularly AI data operations.
Carri Prom, co-founder of Great Lakes Neighbors United, said the organization supports development but wants community input. "We are for development that the community understands, supports and has chosen together," Prom said.
Energy costs drive local concerns
Residents have raised concerns about rising energy consumption from data centers operating in the area. The referendum emerged as a mechanism to give residents a voice in decisions involving public funds.
Christiane Le Jeune, a member of Great Lakes Neighbors United, said the vote demonstrated the value of civic engagement. "Over 1,000 residents signed the petition that put this measure on the ballot, and tonight Port Washington voters spoke with one clear voice," Le Jeune said.
Context: The Stargate project
The Vantage proposal is part of the Stargate Initiative, a multibillion-dollar AI infrastructure program announced by the Trump administration in January 2025. The initiative began with a $100 billion commitment, with plans to expand to $500 billion over four years.
The first Stargate data center opened in Texas. The Wisconsin project represents expansion into other states as tech companies including OpenAI, Oracle, and SoftBank pursue large-scale AI infrastructure investments.
Tech leaders have pledged to generate their own electricity for data centers to reduce costs to taxpayers and address energy concerns.
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