Video The AI data center backlash Voters revolt over soaring electric bills.
A Wisconsin town became the first city in the nation to pass a referendum restricting artificial intelligence (AI) data center development after a vote Tuesday.
Port Washington residents voted overwhelmingly in favor (66%) of a ballot measure that would require city leaders to obtain voter approval before granting tax incentives exceeding $10 million to developers. The ballot measure came after Vantage Data Centers announced intentions to develop a $15 billion artificial intelligence campus in collaboration with tech giants OpenAI and Oracle in October.
The measure was developed by Great Lakes Neighbors United, a local grassroots organization that formed after the original Vantage Data Centers announcement. The organization released a statement celebrating the voting results.
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Port Washington, Wisconsin residents voted in favor of a measure that would require massive city developments, like AI data centers, to receive voter approval. (Getty Images/Wanan Yossingkum)
"Tonight, democracy worked the way it’s supposed to," Great Lakes Neighbors United member Christiane Le Jeune said. "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."
While the measure will not affect the current deal with Vantage Data Centers, it places additional obstacles in the way of other developers, especially AI data organizations, seeking tax incentives in the city.
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"We are not against development," co-founder Carri Prom said. "We are for development that the community understands, supports and has chosen together. Tonight proves that when citizens organize and engage, their voices can be heard."
Fox News Digital reached out to Vantage Data Centers, OpenAI and Oracle for comment.
The Vantage Data Centers project in Wisconsin was part of President Donald Trump's multibillion-dollar artificial intelligence infrastructure "Stargate" project that was announced shortly after his term began in Jan. 2025.
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The initial investment for the project was $100 billion, with plans to expand to $500 billion over the next four years. The first data center built under the initiative was in Texas with plans to expand into other states.
President Donald J Trump announced the Stargate Project with Larry Ellison, chairman of Oracle Corporation and chief technology officer, Masayoshi Son, SoftBank Group CEO, and Sam Altman, OpenAI CEO in the Roosevelt Room at the White House on Tuesday, Jan. 21, 2025, in Washington, D.C. (Sebastian Gollnow/picture alliance/Jabin Botsford/The Washington Post via Getty Images)
Amid concerns about rising energy costs for maintaining data centers, Trump met with several tech leaders to pledge they will generate their own electricity to save taxpayers money.
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Fox Business' Breck Dumas contributed to this report.
Lindsay Kornick is an associate editor for Fox News Digital. Story tips can be sent to lindsay.kornick@fox.com and on Twitter: @lmkornick.
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