A Wisconsin city passed a referendum Tuesday targeting data center construction, requiring future large-scale projects that receive tax benefits to secure approval from local voters.
Port Washington, which sits just north of Milwaukee, approved the referendum with about 66 percent support, according to unofficial results published by the county. It is the first measure of its kind in the nation, Politico reported.
The referendum requires that the approval of a tax benefit, known as tax incremental financing, for projects with a base value or costs of more than $10 million be put to a vote in the community.
It comes in response to the construction of a data center campus in Port Washington, which is set to receive $458 million in tax benefits from the city, according to Christine Le Jeune with Great Lakes Neighbors Incorporated.
“Tonight, democracy worked the way it’s supposed to,” Le Jeune said in a statement. “Over 1,000 residents signed the petition that put this measure on the ballot, and tonight Port Washington voters spoke with one clear voice. The people deserve a seat at the table when their tax dollars are on the line.”
However, the measure is facing a lawsuit from a local business organization, the Metropolitan Milwaukee Association of Commerce, which has argued it could hurt investment in the region.
Data center construction across the country has faced growing opposition from local communities over the past year in the face of concerns about rising electricity prices, water usage and other environmental impacts.
Twenty data center projects worth about combined $98 billion were blocked or delayed between March and June 2025, according to Data Center Watch, a project from the AI company 10a Labs tracking local opposition to the AI infrastructure.
Several states have also put forward bills seeking to halt data center construction. Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) followed suit with a federal proposal for a data center moratorium in late March.
Amid the backlash, several major tech companies, including Amazon, Google and Oracle, signed a White House pledge last month to cover rising consumer electricity costs resulting from their data centers.
