Lawsuit Challenges Permitting for Port Washington Data Center

MEA and Sierra Club File Lawsuit After State Regulators Abandon Required Environmental Review for Port Washington Data Center Sierra Club Wisconsin Press Release, July 10, 2026

Madison, WI—Today, Midwest Environmental Advocates (MEA) filed a lawsuit on behalf of the Sierra Club challenging a Wisconsin Department of Natural Resources (DNR) decision to issue permits for a massive data center campus in Port Washington without fully evaluating the project’s environmental consequences.

The lawsuit comes after emails obtained through a public records request revealed that DNR staff initially informed data center representatives that a detailed Environmental Impact Statement (EIS) would be required due to the scope and scale of the project. After data center representatives complained that an EIS would “kill the project,” the DNR reversed course and decided to conduct a more limited “environmental analysis summary.” The agency has never publicly explained that decision.

“This case is about transparency and accountability,” said MEA attorney Michael Greif. “Wisconsinites have a right to know why the state changed course and why one of the largest development projects in Wisconsin history is moving forward without the level of environmental review and public input the law requires.”

Vantage Data Centers, Oracle, and OpenAI are building the Port Washington data center as part of a broader effort to expand computing infrastructure for artificial intelligence. The $15 billion project is one of the first hyperscale data centers under construction in Wisconsin. The first phase alone will require an unprecedented 1.3 gigawatts of power—an amount that could power more than half a million households. The data center itself will cover 672 acres, and its energy demand will spur the construction of new gas plants, substations, and high-voltage transmission lines that will spread over six counties.

“The Port Washington data center is unlike anything Wisconsin has seen before,” said Elizabeth Ward, Sierra Club Wisconsin Chapter Director. “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.”

In comments submitted to the DNR earlier this year, MEA and the Sierra Club urged the DNR to prepare a comprehensive Environmental Impact Statement that would evaluate the data center’s direct, indirect, and cumulative environmental impacts. In particular, they pointed to inconsistencies and a lack of transparency regarding the infrastructure required to support the data center’s extraordinary energy demands. While the project’s public-facing website and other marketing materials tout renewable energy development, they make little or no mention of the new fossil fuel infrastructure—including the new Foundry Ridge gas plant in Walworth County—that will be built to power the Port Washington data center. 

According to a new report by the Public Service Commission of Wisconsin, the Port Washington data center is one of three data center projects responsible for a projected 40 percent increase in statewide energy demand over the next six years. The majority of that demand will be served by new natural gas plants or upgrades to existing gas plants.

“Environmental review is about transparency as much as it is about science,” said Greif. “When data center developers aren’t forthright with the public and regulators aren’t willing to hold them accountable, it’s difficult to understand the true environmental impact of a single project, much less the combined impact of multiple hyperscale data centers. The EIS process exists for moments exactly like this. It requires government agencies to step back, examine the whole picture, and explain its decisions. Instead, regulators abandoned environmental review without ever telling the public why.”

Source: MEA and Sierra Club File Lawsuit After State Regulators Abandon Required Environmental Review for Port Washington Data Center. https://www.sierraclub.org/wisconsin/blog/2026/07/mea-and-sierra-club-file-lawsuit-after-state-regulators-abandon-required

Rachel Tilseth is a Menomonie, Wisconsin-based environmental writer, filmmaker, and owner of Wolves of Douglas County WI Films & Media. Lead writer at The Red Cedar Watershed Ledger. Her work explores the intricate relationships between humans, wildlife, and local ecosystems.

Jan O’Neill-editor at large. Jan edits the blog for grammatical accuracy and contributes story ideas.

Given Jan’s extensive 45-year nursing background, protecting the health and well-being of the Menomonie area has been her life’s work. With deep local roots in the Red Cedar River Watershed, she views environmental conservation as a natural extension of public health. Jan is dedicated to halting the proposed mega data center to preserve the community’s natural resources, advocating instead for sustainable, community-driven economic development that protects the long-term quality of our watershed.

The Red Cedar Watershed Ledger is based in Menomonie, Wisconsin, in the historic Red Cedar Basin.

Discover how our local economy can thrive without leaving the planet behind. We cover news and stories on sustainable economic development, highlighting initiatives that boost community prosperity, foster equity, and protect our local ecosystems.

We are producing a series of educational articles and interviews featuring city leaders, scientists, and residents to explore sustainable economic development in the region. What began as a grassroots effort by Menomonie residents to successfully pause a controversial data center has evolved into a broader mission championing environmentally conscious, community-driven economic growth.”

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