Data Center Ordinance Discussion Continues in Harmony

The Harmony City Council, Economic Development Authority (EDA), and Planning and Zoning Commission held a joint planning session on March 18 to finalize a city ordinance for future data center development in Harmony, Minnesota. While there is no specific developer or project currently in place, multiple companies have shown interest due to available energy from MiEnergy and Dairyland Power Cooperative. The first draft of the ordinance is nearing completion. The discussions covered several key areas. Hyperscale data centers have been ruled out, and sixty acres of farmland have been annexed for a potential data center site. The group agreed to create an Industrial Technology Zone for such developments. Water usage will be strictly limited to bathrooms, sinks, and cleaning, with no water cooling systems allowed, and quarterly reporting will be required. A noise standard of 60 dBA was set, along with a minimum setback of 500 feet from residential areas. Regarding energy, data centers will purchase power directly from MiEnergy, with the city receiving a franchise fee. While some residents expressed concerns about utility cost increases, EDA Coordinator Katrina Hurley stated that direct energy purchases by the data center would not raise costs for Harmony residents. However, the overall increase in data centers across Minnesota is straining energy grids and driving up rates generally. The ordinance will require a reporting system for peak demand levels. An Environmental Impact Study (EIS) will be a mandatory requirement for any data center project. Decommissioning plans, including financial assurance like a bond or escrow updated every five years, were also discussed to ensure land restoration if a developer leaves, with City Attorney Greg Schieber suggesting amendments to the city's nuisance ordinance for abandoned structures.