Port Washington data center designs approved for $8B development

Port Washington data center designs approved

Port Washington officials approved designs to develop an $8 billion data center. The mayor said it aims to sustain the environment. Not everyone is convinced.

PORT WASHINGTON, Wis. - Port Washington officials approved designs to develop an $8 billion data center. And while the mayor said the plan aims to sustain the area's existing environment, not everyone is convinced.

Data center plans

What they're saying:

Vantage Data Centers will begin by developing four data centers on the south portion of the site, which is roughly 670 acres.

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"One of the things that really drew us to Vantage was their environmental sustainability approaches, intentionality in design, and limited use of resources," said Port Washington Mayor Ted Neitzke.

Neitzke said the company plans to plant more than 2,500 trees around the center, use renewable energy and use minimal water.

"Everything they can to mitigate that through restoring wetlands, putting in retention ponds and engineering around that," he said. "The environmental impact for the city of Port Washington in that area is really positive."

Neighbor concerned

The other side:

Eric Rathgeber said he built his Port Washington home roughly five years ago. He planned to stay there, but that all changed when he learned a data center was coming to town – and that center was going to be his new neighbor.

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"Did not want to move. Built this place to retire," he said. "We just want to get out of here before it becomes unenjoyable."

Residents like Rathgeber are not totally sold on the project.

"I don't think there is any way they can completely eliminate the disruption," he said. "I know the character of this place is going to change because it's a data center."

Vantage agreement

Dig deeper:

Earlier in August, the city said its agreement with Vantage outlines major infrastructure improvements, new near-term tax revenue that will provide relief to residents, and long-term revenue the city would realize from the project once new infrastructure has been paid for. The agreement also ensures that residents will not pay for any costs associated with the project. 

Under the agreement, Vantage will invest at least $8 billion in development costs for the project, covering 672 acres on the south side of the site.

Vantage will pay upfront for major infrastructure work and be reimbursed through a tax incremental district (TID), which will be funded entirely by new property tax revenue generated by the development. The TID will remain open for up to 20 years or until costs are fully reimbursed.

Separate from the TID, Vantage will begin paying property taxes based on the assessed value of the land it is purchasing.