Residents of Port Washington, Wisconsin, USA, recently passed a referendum, becoming the first community in the United States to put the brakes on a data center project by voting, triggering widespread industry attention on the future layout of artificial intelligence infrastructure.
The core content of this referendum is that in the future, if the city government provides tax incentives worth more than $10 million to developers, it must obtain prior approval from voters. According to unofficial statistics from the county election department, about 66% of voters supported the proposal, which is a very clear support ratio.
This process stems from a large-scale AI data center project being promoted locally. Vantage Data Centers plans to build an AI data park with an investment of approximately US$15 billion in Porter Washington. Partners include OpenAI and Oracle. The project is included in the Trump administration's "Stargate" national AI infrastructure plan. Construction of the park started in December last year and is expected to receive about $458 million in tax incentives from the city government.
However, the external impacts brought about by the implementation of large-scale data centers have aroused dissatisfaction and concern among some residents. Local residents pointed out that such facilities will continue to generate noise during construction and operation, while consuming large amounts of fresh water resources and electricity, which may push up the electricity costs of ordinary households. Driven by the opposition, a local non-profit organization called "Great Lakes Neighbors United" was established to organize mobilization and collect signatures. It received more than 1,000 signatures from residents and officially put the referendum issue on the ballot.
On a larger scale, the U.S. federal level has also begun to notice the impact of AI data centers on electricity prices. The senator has previously raised questions about the power consumption of data centers by large technology companies. Studies have shown that in areas with dense data centers, residential electricity prices have increased by up to 267% in five years.
It should be emphasized that this referendum will not halt the construction of the Vantage Data Park, and the relevant tax preferential arrangements will not be retroactively modified. The referendum focuses on new projects that may emerge in the future. At the same time, the relevant policies themselves also face legal uncertainty. The Metropolitan Milwaukee Association of Commerce filed a lawsuit in January this year, arguing that the measure violated state law and is expected to enter judicial proceedings.
Porter Washington is not alone. This referendum has set a "model" to a certain extent. Currently, many communities in the United States are promoting or preparing similar restrictions. Monterey Park, California, will vote in June on whether to impose a blanket ban on new data center construction. Augusta Township, Michigan, plans to decide in August whether to overturn local regulations that previously allowed the project. Janesville, another Wisconsin city, has also scheduled a vote on a similar issue in November.
The wave of opposition is not limited to the local referendum level. According to statistics from the "Data Center Watch" tracking project operated by AI company 10a Labs, between March and June last year alone, about 20 data center projects were blocked or delayed, involving a total investment of approximately US$98 billion. In the context of the rapid expansion of AI infrastructure, such resistance from public opinion and supervision is becoming a new variable that technology companies and local governments have to face.