Port Washington voters pass referendum fueled by concerns about data center project

Voters in Port Washington, Wisconsin, decisively passed a referendum on Tuesday, granting residents increased power over local development incentives. The measure, which received approximately 66 percent of the vote in Ozaukee County, mandates voter approval for substantial development incentives, a direct response to public backlash against the city's prior approval of a tax incremental district (TID) for a multi-billion-dollar data center campus. Great Lakes Neighbors United, a community organization actively opposing the Port Washington data center development, hailed the referendum's passage as a victory for "transparency and public participation." This local outcome mirrors a broader sentiment across Wisconsin, where recent polling indicates growing unease over the rapid expansion of data center developments. Charles Franklin, director of the Marquette Law School Poll, noted that statewide public sentiment has shifted significantly, with 70 percent of voters in February believing data center costs outweigh their benefits, a dramatic increase from 55 percent in October. Concerns primarily revolve around potential water and energy usage. The issue is gaining political traction, with Franklin suggesting it could influence November's gubernatorial and state legislature elections. While the ordinance passed by referendum will not retroactively affect the TID already approved for the specific data center project, business groups have sued the City of Port Washington to challenge the legality of the ordinance itself, arguing it will deter economic development. Conversely, Great Lakes Neighbors United has filed a separate lawsuit directly challenging the legality of the data center's TID. A judge previously declined to block the ordinance from going to referendum, allowing Great Lakes Neighbors United to intervene in the case, with a scheduling conference set for April 16.