Sierra Club Sues Wisconsin DNR Over Data Center Environmental Review

Port Washington council approves TID for $15B data center campus as residents continue to speak out

The controversy surrounding the construction of a $15 billion data center campus in Port Washington, Wisconsin, has intensified as environmental groups challenge the state’s regulatory processes. The Wisconsin Department of Natural Resources (DNR) faces legal action for allegedly reversing its decision to conduct a comprehensive environmental review of the project.

Midwest Environmental Advocates (MEA) has filed a lawsuit on behalf of Sierra Club Wisconsin in the Ozaukee County Circuit Court. The lawsuit asserts that the DNR issued permits for the data center, developed by Vantage Data Centers for Oracle and OpenAI, without preparing an environmental impact statement (EIS). This decision has sparked concern among environmental groups who argue that such a significant project requires a thorough examination of its potential environmental effects.

Emails obtained by the groups through a public records request reveal that in July 2025, DNR attorney Molly McNab informed Vantage representatives that an EIS would be necessary. Vantage’s director of senior corporate counsel, Andrew Stewart, mentioned in a communication dated July 18, 2025, that the requirement was causing internal panic. Emails further show that on September 23, a Vantage official texted Port Washington Mayor Ted Neitzke regarding the governor’s office inquiry about why an EIS might jeopardize the project.

Elizabeth Ward, Sierra Club Wisconsin’s director, emphasized the importance of environmental impact statements, stating, “It’s deeply concerning that with such a massive project like the Vantage data centers, the DNR did not do an environmental impact statement.” She also noted the agency’s lack of public explanation for not pursuing a detailed review.

While the DNR has refrained from commenting on the ongoing litigation, Vantage has expressed confidence in the permitting process. A statement from Vantage asserts their commitment to working “closely and transparently” with the DNR and other agencies, emphasizing their focus on responsible project development.

The environmental groups contend that the DNR’s decision violates Wisconsin’s Environmental Policy Act, given the project’s massive scale and potential impact on the human environment. The data center spans 672 acres and is expected to consume significant energy resources. The first phase alone would require 1.3 gigawatts of electricity, with future demands potentially reaching 3.5 gigawatts.

Local residents and environmental advocates have voiced concerns about the project’s environmental footprint, particularly its water and energy consumption. The construction of new gas-fired power plants, amounting to 5.4 gigawatts, is reportedly driven by the energy needs of data centers. Additionally, a draft energy assessment by the Public Service Commission of Wisconsin indicates a potential 40 percent increase in electricity demand by 2032 due to data center growth.

Residents have also raised issues regarding traffic, noise, dust, and light pollution, as well as emissions from backup diesel generators. The project involves filling 4.7 acres of wetlands, further exacerbating environmental concerns.

MEA attorney Michael Greif underscores the lawsuit’s focus on ensuring transparency and accountability in the DNR’s decision-making process. “Perhaps due to outside pressure, they ended up walking that requirement back,” Grief remarked. “Today we’re challenging that decision, and ultimately hoping to get a full environmental review of the Vantage data centers, as well as the other electrical infrastructure that the data center is spurring construction of.”

In addition to environmental challenges, Oracle has also initiated legal proceedings against the Public Service Commission over financial requirements for data centers, adding another layer of complexity to the project’s regulatory landscape.

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