Wisconsin City become nation’s first to pass anti-data center referendum, and it’s a bad omen for US tech companies

Port Washington, Wisconsin, has officially become the first city in the nation to pass a referendum that restricts data center construction, The Hill reported. Residents voted on Tuesday to require that any large-scale data center project seeking tax benefits must first secure approval from local voters.

This new measure specifically applies to projects with a base value or costs exceeding $10 million, ensuring that the community has a direct say in how its tax dollars are utilized for these massive infrastructure developments.

The referendum passed with approximately 66 percent support, according to unofficial results published by the county. This is a significant move for a community located just north of Milwaukee, especially considering it was triggered by a specific data center campus in the area. That particular project is set to receive $458 million in tax benefits from the city, a figure that clearly caught the attention of local residents.

Port Washington stands as the tip of the spear in a growing movement that is demanding more accountability from the tech sector

Christine Le Jeune, representing Great Lakes Neighbors Incorporated, highlighted the significance of the vote after the results came in. She said, tonight, democracy worked the way it is supposed to. 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 this is a victory for the organizers, it is not the end of the road for this policy. The Metropolitan Milwaukee Association of Commerce has already initiated a lawsuit against the measure. The organization argues that such a requirement could negatively impact investment in the region, creating a tense standoff between local residents and business interests. It is a classic clash of priorities that we are seeing play out across the country as the physical footprint of the digital age expands into our own backyards.

This situation in Wisconsin is not an isolated incident. Data center construction has faced increasing pushback from communities over the past year. People are becoming much more vocal about their concerns regarding rising electricity prices, high water usage, and the broader environmental impacts that come with hosting these massive facilities.

The data confirms this growing trend of resistance. Data Center Watch, a project from the AI company 10a Labs, reported that twenty data center projects worth a combined $98 billion were either blocked or delayed between March and June 2025. It is clear that the honeymoon phase for these massive tech projects is ending in many parts of the country.

The legislative pressure is also mounting at the federal level. In late March, Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez proposed a federal data center moratorium. This proposed legislation, titled the Artificial Intelligence Data Center Moratorium Act, aims to halt the construction of all new data centers until strong national safeguards are in place.

The bill seeks to address concerns about government reviews of AI products, the potential for mass job displacement, and the impact on consumer electricity prices. Sanders first voiced his support for such a moratorium in December, and he recently emphasized that a moratorium would give the country time to understand the risks and protect working families. He stated that a moratorium will give us time, time to understand the risks, time to protect working families, time to defend our democracy and time to ensure that this technology works for all of us, not just the few.

Rep. Ocasio-Cortez has also voiced her support for these efforts, citing concerns about how AI could be used to expand mass surveillance. She expressed frustration with the current state of regulation, noting that all of this harm has occurred, not in spite of, but because of the absence of federal legislation to regulate AI. She added that it is extremely discouraging to see how even the most minute efforts to protect people at some of the smallest and most basic levels, like trying to prevent AI-generated child pornography, are still being combated.

On the other side of the debate, industry representatives are pushing back hard against these restrictions. Cy McNeill, the senior director of federal affairs at the Data Center Coalition, has argued that these facilities are essential to our modern existence. He suggested that this infrastructure is not optional; it is foundational. McNeill warned that a federal mandate to halt data center construction risks rationing access to digital services, impairs our global competitiveness, and will have substantial impacts on Americans daily lives.

Tech giants are clearly feeling the heat from this widespread backlash. Major companies like Amazon, Google, and Oracle signed a White House pledge last month to cover the rising consumer electricity costs that result from the operation of their data centers. It is a reactive move, but one that highlights how much pressure these companies are under to appease local communities and federal regulators alike.