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Port Washington's Pivotal Referendum on Data Center Development

4/7/2026, 11:02:09 PM

Overview of the Referendum

On April 7, 2026, voters in Port Washington, Wisconsin, faced a significant decision regarding the future of local development. The referendum proposed requiring voter approval for any Tax Incremental Financing (TIF) districts exceeding $10 million. This measure emerged amidst controversy surrounding the proposed $15 billion Stargate data center campus, backed by President Donald Trump and developed by OpenAI and Oracle. If passed, the referendum would not halt the current project but would impose stricter controls on future developments.

Background and Context

The referendum is a response to growing concerns among residents about the impacts of large data centers, particularly regarding transparency, noise pollution, and increased energy costs. Local activists, organized under the nonprofit Great Lakes Neighbors United, argue that the current approval processes lack adequate public input. The group's co-founder, Carri Prom, emphasized their desire for "responsible development" rather than outright opposition to technology or growth.

Key Stakeholders

The primary stakeholders in this debate include:

  • Great Lakes Neighbors United: A grassroots organization opposing the data center, advocating for community oversight.
  • OpenAI and Oracle: Developers of the Stargate project, promoting its economic benefits, including job creation and sustainable energy practices.
  • Port Washington City Officials: Including Mayor Ted Neitzke, who argues that the referendum could hinder economic revitalization efforts in a city recovering from industrial decline.

Official Statements & Responses

OpenAI and Oracle have highlighted the project's potential to create 4,000 construction jobs and 1,000 long-term positions, alongside infrastructure improvements funded by the project. Oracle's spokesperson stated, “We’re paying our own way on energy so ratepayers’ bills and electric grid reliability are not impacted by our data center.” Conversely, local activists and critics express concerns that the referendum is necessary to regain control over development decisions, with Prom stating, “We didn’t want this to happen in the same fashion again.”

Criticism & Opposition

Critics of the referendum, including business leaders and city officials, argue that it could deter future investments and economic growth. Dale Kooyenga, president of the Milwaukee Metropolitan Association of Commerce, warned that requiring voter approval for TIF districts could be detrimental, stating, “It will be a killer for economic development.” Additionally, the Metropolitan Milwaukee Association of Commerce has filed a lawsuit challenging the legality of the referendum.

Conflicting Reports & Gaps

While proponents of the referendum argue it empowers citizens, opponents claim it could stifle necessary economic development. The legal validity of the referendum is also in question, with experts suggesting it may exceed the scope of local referenda powers as defined by state law.

What's Next

As the referendum unfolds, its implications could extend beyond Port Washington, potentially influencing similar grassroots movements in other communities. At least three other municipalities, including Monterey Park in California and Augusta Township in Michigan, are also considering data center-related ballot measures in 2026.

Verbatim Quotes

  • “We’re not even really anti-tech. It’s just that we want responsible development, and we want responsible tech moving forward.” — Carri Prom, Co-founder, Great Lakes Neighbors United
  • “This referendum is just a natural reaction to that,” — Amy Barrileaux, Communications Director, Clean Wisconsin
  • “We can bring some significant development to our city, because we lost all of our industry in the early 2000s.” — Ted Neitzke, Mayor of Port Washington
  • “You can’t tell a prospect that you need to wait for an election, let alone tell them that they have to put their company on a ballot. It will be a killer for economic development,” — Dale Kooyenga, President, Milwaukee Metropolitan Association of Commerce

The outcome of this referendum may set a precedent for how communities across the U.S. engage with large-scale tech developments, balancing local concerns with economic opportunities.