Environmental groups sue DNR over environmental review process for Port Washington data center

A pair of environmental groups filed a lawsuit Friday in Ozaukee County Circuit Court alleging that the Wisconsin Department of Natural Resources skipped a required environmental review process at the request of the company that is building a massive data center in Port Washington. 

The lawsuit, filed by Midwest Environmental Advocates on behalf of the Sierra Club, alleges that the DNR backed off from requiring an environmental impact statement  after the company, Vantage, said it would “kill the project.” 

Communications between data center representatives and DNR staff, obtained by the groups through open records requests, showed Vantage complaining about the EIS requirement. The DNR ultimately conducted a more limited environmental analysis summary. 

Vantage, Oracle and OpenAI are currently constructing a $15 billion hyperscale data center in the community. The data center will cover 672 acres and in its first phase require 1.3 gigawatts of power. 

In the lawsuit, the groups argue that by not conducting the full environmental impact statement, the DNR ignored the potential impacts of the construction and operation of the massive data center on the local wetlands, water supply, air quality and energy demand. The lawsuit states that failing to conduct the full review before granting permits for the data center violates Wisconsin’s Environmental Policy Act.
“The Port Washington data center is unlike anything Wisconsin has seen before,” Elizabeth Ward, director of the Sierra Club’s Wisconsin chapter, said. “It will completely transform the local landscape, consume staggering amounts of electricity and water and significantly increase fossil fuel emissions. At a time when scientists warn that greenhouse gas emissions must be reduced to avoid the worst impacts of climate change, we cannot afford to be making long-term decisions that move us in exactly the opposite direction.”

The DNR permitting is not the only legal dispute the project is currently facing. Earlier this year, the state’s Public Service Commission instituted a tariff that outlines how data center companies must pay for the required energy use and compels them to put up a large amount of collateral for necessary infrastructure improvements. The tariff is designed to insulate regular Wisconsinites from seeing their energy bills increase or being left to cover the costs of massive upgrades to the grid if a company fails or abandons the project. 

Oracle has argued it doesn’t have enough funds to meet the collateral requirements and appealed to the PSC to reconsider. This week, the PSC declined that appeal, setting up a legal battle over the tariff. 

A DNR spokesperson said the agency couldn’t comment on active litigation.