Wisconsin Welcomes Massive OpenAI and Oracle Data Center Project

It's official: OpenAI, the creator of ChatGPT, and tech giant Oracle are the key players behind the colossal new data center campus planned for Port Washington, Wisconsin. The project, initially announced by developer Vantage Data Centers with an $8 billion price tag, has now been revealed to be a much larger investment of over $15 billion, encompassing four state-of-the-art data center buildings.

The Stargate Initiative Comes to Wisconsin

This development is a core component of the ambitious Stargate program, a $500 billion national initiative designed to massively expand the United States' artificial intelligence capacity. First announced by President Donald Trump in January, the program aims to secure America's lead in AI technology.

The Port Washington location, named "Lighthouse," will be the only Midwest site in the program, joining other Stargate locations in Texas and New Mexico. The companies are committed to developing an additional 4.5 gigawatts of power capacity to support this expansion, as detailed in a recent announcement.

Dana Adams, President of North America for Vantage Data Centers, expressed excitement about the project's potential. “It puts Wisconsin on the map really as part of the fourth industrial revolution and enabling a lot of this technology from within the state,” she said. OpenAI's Vice President of Industrial Compute, Peter Hoeschele, added that expanding to Wisconsin is a “major step toward building the infrastructure that will help ensure everyone can benefit from AI.”

Economic Boom Investment and Job Creation

The economic impact is projected to be substantial. The "Lighthouse" campus is expected to create over 4,000 construction jobs during its development. Once operational, Vantage Data Centers will employ approximately 330 people on its site operations staff, with OpenAI and Oracle bringing an additional 700 jobs to the roughly 670-acre campus.

Rebecca Gries, executive director of the Milwaukee 7 Regional Partnership, anticipates that the high-profile nature of these companies will attract talent from across the country to Southeast Wisconsin. Port Washington Mayor Ted Neitzke IV echoed this sentiment, stating that the investment will create “long-term economic ripple effects” and enhance the quality of life for local residents. A groundbreaking ceremony is anticipated for November, with a target completion date of 2028.

Community Divided Support and Concerns

While the project received initial approval from the Port Washington Common Council in August, it has not been without controversy. Recent public meetings have seen an influx of residents voicing strong concerns about the campus's significant water and energy demands and its potential environmental impact. One meeting was moved to a larger venue to accommodate the crowd.

“The people of Port Washington have made it clear that they oppose this project,” resident Tracy Finch stated during a recent council meeting. In contrast, local construction unions have voiced strong support, highlighting the creation of career-building jobs. Steve Buffalo of the International Union Of Operating Engineers 139 noted, “These are career building jobs, not temporary work.”

Addressing Environmental and Infrastructure Challenges

To address water usage concerns, Vantage has stated the buildings will use a “closed-loop liquid cooling system,” which Adams described as a “very water-conservative, very water-sustainable” solution.

The campus's massive energy requirement of 1.3 gigawatts necessitates significant infrastructure upgrades. A $1.4 billion transmission line project by American Transmission Co. is being proposed to support the development. Vantage Data Centers announced it is underwriting 100% of this investment with a dedicated electricity rate from We Energies, designed to protect other customers from rate increases.

However, this new transmission line has created another point of opposition. Some residents in the proposed path are worried about decreased property values and disruptions to local wildlife, with a group launching a website to voice their concerns. The Port Washington Common Council is expected to vote on the tax incremental financing district for the project in November.