On April 7, Port Washington voters will decide whether they can have the option in future elections to stop city officials from approving large tax incremental financing districts (TID).
Currently, the Port Washington Plan Commission and Common Council create and approve TID proposals in a majority vote. If the proposed referendum passes, Port Washington residents would get to vote on large TID proposals.
The referendum comes after Port Washington officials last August, despite resident criticism, entered a development agreement with Vantage to build a $15 billion data center called Lighthouse as part of OpenAI’s Stargate expansion. The city also approved a $458 million TIF for the project.
TIFs are an economic development technique to expand the property tax base, according to the State of Wisconsin Department of Revenue. Tax funding from property value increases is used to fund the specific project or purpose the TIF was created to support. Tax incremental districts are the actual physical area (whole parcels) designated for improvements using tax incremental financing.
Great Lakes Neighbors United is a citizen-led group against data center development. The group proposed the referendum and gathered the signatures needed to place it on the April 7 ballot. Business groups including the Metropolitan Milwaukee Association of Commerce sued the city, seeking an injunction that would stop the ballot measure. The MMAC argues that the referendum is "unlawful" and conflicts with existing policies.
“State statute already dictates the process in approving TIDs," says MMAC President and CEO Dale Kooyenga in a statement. "A measure of this nature would not only conflict with state law, it would be devastating for economic development in Port Washington and would set a dangerous precedent with long-lasting economic impacts across the region and throughout the state.”
A judge denied MMAC's request, but said if the ballot measure passes, the case could be taken to court again.
Some local lawmakers in Wisconsin who are eager for development in their communities say data centers can generate millions of dollars in tax revenue. Port Washington Mayor Ted Neitzke made that argument at a city planning commission meeting in October 2025 when arguing for the Lighthouse development.
Neitzke said the data center project in Port Washington will bolster the city’s budget. In an interview with WUWM, Neitzke added: “People will ask me what keeps me up at night. It’s not the data center. It’s what if we don’t have development? What happens to the high school I graduated from? What happens to the quality of our roads? And we’ve been keeping it together on a shoestring."
Here’s what to know:
Why are data centers so controversial?
Some concerns surrounding hyperscale data centers — which support the growth and advancement of artificial intelligence — include potential hikes in residential power rates, environmental impacts, and the use of AI in the workforce and arts and culture.
Vocal opposition to the Port Washington Lighthouse project — and to a proposed site that Microsoft considered in Caledonia — has kept the subject in the news in Wisconsin. Similar stories are popping up around the nation. And many people around the country are concerned about the data center boom, according to the Marquette Law School national survey released in February 2026. It says 62% of those surveyed believe the costs of data centers outweigh the benefits.
The Lighthouse project in Port Washington calls for new high power transmission lines to connect the data center complex to the power supply. Those high power transmission lines could cover 100 miles and span six counties, at a projected cost of up to $1.6 billion. Some people argue the project will add costs to their electric bills, despite promises by WEC Energy Group President and CEO Scott Lauber.
Critics argue that the building of the transmission lines — and the data centers themselves — will destroy the rural character of the area. Vantage, which is developing the Lighthouse project, is planning four data centers on 500 of 672 acres that Vantage has acquired. Some farmers and homeowners have already vacated the property.
What question will be on my ballot?
"Pursuant to Wisconsin Statute§ 66.1105, the City of Port Washington may, through its Plan Commission and Common Council, exercise the powers necessary to create Tax Incremental Districts. Pursuant to Wis. Stat. § 9.20, through the power of direct legislation, the electors of the City of Port Washington have put forward a proposed ordinance. Shall the City of Port Washington adopt the proposed ordinance, which, if adopted, would bar the City from creating or approving a Tax Incremental District that requires a large capital expenditure, or with a base value projected to or exceeding $10,000,000.00, or project costs exceeding $10,000,000.00, unless the creation or approval of such a Tax Incremental District has been approved by the majority of electors in a general or special election?"
What a "yes" vote means
A “yes” vote would allow voters in future general or special elections to weigh in on if city officials can create or approve TIDs for projects of $10 million or more. It would not affect the already-approved TIF for the Vantage data center project.
What a "no" vote means
A “no” vote means Port Washington Plan Commission and Common Council members will continue to vote on the creation and approval of high-value TIDs.
Where can I find more information about data centers?
WUWM’s Data Centers FAQ explains what data centers are, their potential impacts on the community and why people support and oppose them.
