Port Washington voters approve first-in-the-state ordinance responding to data center boom

Voters in Port Washington, Wisconsin, have overwhelmingly approved a new ordinance that mandates public approval for tax breaks on large-scale developments exceeding $10 million. The measure, a direct response to a massive AI data center project by Vantage, was championed by a grassroots organization called Great Lakes Neighbors United. Michael Beaster, a member of the group, stated that they quickly gathered 1,000 signatures to force the common council to adopt the ordinance or place it on the ballot. The council chose the latter, leading to its approval by voters. While the new ordinance does not specifically target data centers and will not impact the ongoing construction of the $15 billion Vantage project, it aims to prevent similar tax breaks without voter consent in the future. Port Washington Mayor Ted Neitzke, who supports the data center development, expressed concerns that the ordinance could deter future investment, making the city less attractive to developers. The Metropolitan Milwaukee Association of Commerce (MMAC) echoed these worries, stating that developers would be unwilling to risk public referendums for their projects. MMAC has since filed a lawsuit to block the ordinance, citing "serious legal and economic concerns." Despite the impending legal challenge, Mayor Neitzke is working with the city attorney to implement the ordinance immediately, with a court hearing on the lawsuit scheduled for later this month.