Port Washington paves way for data center by acquiring 1,900 acres

Port Washington officials on Tuesday signed a deal to annex 1,900 acres of land, another step forward for a proposed data center project.

The Port Washington Common Council approved an agreement to transfer land from the Town of Port Washington adjacent to Interstate 41 near Lake Drive. In early January, the city discussed potential development of a data center with Cloverleaf Infrastructure, but it’s not clear yet who will use the future technology facility.

After annexation, the city is better positioned to move forward on infrastructure improvements and change zoning codes to ensure plans for a data center will address possible aesthetic and other concerns, officials said in a news release. Cloverleaf will identify a company to assume ownership of the site, then build and operate the data center, officials added.

The company will be expected to pay for infrastructure, power generation and water use costs, officials said. Clean energy will be a priority for the future facility, officials added.

The expected result of the project is long-term property tax revenue for the facility, more revenue for the town, water and sewer extensions to parts of the town and extension of agreements covering fire and rescue services the city provides, officials said. A data center will bring well-paying jobs as well, officials noted.

“This agreement represents an important next step on a proposed project that would provide significant benefits to our residents,” Ted Neitzke IV, mayor of the city of Port Washington, said in a statement. “We thank our colleagues at the Town of Port Washington for having the foresight to recognize this opportunity. For the City, this project can provide long-term resources for our schools and emergency services while relieving some of the burden on residents who currently bear 80% of our property tax levy. And it can do so without the pollution, noise or traffic you might see with other kinds of projects. We will continue to explore this opportunity, providing regular updates and listening to our constituents throughout the process,” he added.

Meanwhile, southeast Wisconsin is a hotbed for data center activity as the $3.3 billion project for Microsoft is underway in Mount Pleasant. The tech giant recently paused some construction to rework its building plans. In Kenosha County, an unnamed owner was granted approval to annex and rezone land for a 250,000-square-foot data center and utility substation.