Port Washington approves development agreement for $8 billion data center

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Another step has been unlocked for the proposed data center in Port Washington.

The city of Port Washington Common Council approved a development agreement with Denver-based Vantage Data Centers, which proposed a data center campus worth billions of dollars west of Interstate 43. The development agreement sets the project cost at $8 billion, more than the $3.3 billion data center campus Microsoft is building in Mount Pleasant.

Vantage will develop data centers with more than 2.5 million square feet on the south portion of a 1,900-acre site, which is a different plan from original owner Cloverleaf Infrastructure, city officials said in a news release. The new plan will be completed across 672 acres.

There could be a future development north of Lake Drive, but it’s not currently under consideration.
Plans also include a 6,500-square-foot visitor center and a 50,000-square-foot warehouse. The four buildings will use a total of 1.3 gigawatts of power, officials said.

Data center buildings will be supported by parking lots with up to 200 stalls, generators, transformers, utility buildings and dry coolers.

Under the agreement, Vantage will pay up front for infrastructure improvements and be reimbursed through a 20-year tax increment district. The city estimated around $175 million in infrastructure improvements to support campus activities.

Those improvements include expanded capacity for water and wastewater treatment facilities, upgraded water mains and sewer lines, power infrastructure and a new water tower.

To cover the 1.3 gigawatts of power usage, Vantage will work with We Energies to provide power for the campus and local consumers without financial burden on residents, officials said. Power will come from a mix of sources including wind and solar, natural gas, batteries and nuclear power.

The city said 70% of power capacity will come from clean energy resources and the remaining will be matched with renewable energy purchases. Vantage will support We Energies‘ addition of 600 megawatts of clean energy to the grid.

The data center will cool its systems with a closed-loop chiller system with dry coolers, which will save billions of gallons of water each year, officials said. The water Vantage will use will be purchased from the city and will be equal to around 65 residential homes. There won’t be a direct water connection to Lake Michigan.

Officials said the development agreement is designed to spare residents of any costs associated with the project.

“This is a historic day for the City of Port Washington and our residents,” City of Port Washington Mayor Ted Neitzke IV said in a statement. “With this agreement in place, we can move forward on a generational opportunity to improve our infrastructure, relieve the tax burden on our residents and boost our local businesses. This agreement positions our city for a strong, vibrant future without disrupting any of the great things we all love about living here today. And it does so while protecting residents from absorbing any costs related to this project. We look forward to a continued strong partnership with Vantage on a successful project that will benefit everyone.”

“Vantage Data Centers appreciates the support of Mayor Ted Neitzke and the Common Council for our project,” said Tracye Herrington, vice president of new site development at Vantage Data Centers, in a statement. “With the development agreement approved, Vantage looks forward to finalizing next steps in order begin mobilizing on site. We’re excited to take this next step to move our project forward and become part of the Wisconsin community, bringing job creation, economic growth and a sustainable impact.”

South of Milwaukee, Microsoft is working to open the first phase of its data center campus in early 2026 and has already started hiring full-time staff in Mount Pleasant. The company said it will start work on a second phase but hasn’t shared how much that will cost. The tech giant said the next phase will be “additive” to the $3.3 billion investment announced in 2023.

When it first proposed plans to the village of Mount Pleasant, Microsoft engineers said they would build nearly 1.3 million square feet in the first phase.