US Town First to Pass Referendum Restricting AI Data Center Development

Residents of Port Washington, Wisconsin, U.S., have passed a referendum restricting AI data center development, requiring voter approval for tax breaks exceeding $10 million. This is the first time in the nation that a town has put the brakes on AI data center development. The referendum passed with 66% of the vote.

The measure comes after Vantage Data Centers announced plans to develop a $15 billion AI data center campus in partnership with OpenAI and Oracle. A local grassroots group called 'Great Lakes Neighbors United' spearheaded the measure, forming after Vantage Data Centers' announcement. More than 1,000 residents signed a petition to bring the measure to a vote.

Citizens expressed concerns about rising energy costs associated with AI data centers.

While the measure does not affect current agreements with Vantage Data Centers, it erects an additional hurdle for other developers seeking tax incentives over $10 million.

Vantage Data Centers' Wisconsin project was part of a multi-billion dollar plan to build out AI infrastructure announced by the then-U.S. President shortly after his term began.