Lawsuit filed against Eagan asks court to void city's data center moratorium
A lawsuit has been filed against the City of Eagan, Minnesota, by Eagan Capital, LLC, seeking to void the city's data center moratorium. The complaint argues that the city exceeded its authority by attempting to regulate electricity usage, which falls under the Minnesota Public Utilities Commission's jurisdiction. Eagan Capital is also seeking monetary damages in excess of $50,000.
Eagan Capital, LLC has filed a lawsuit against the City of Eagan, Minnesota, challenging the legality of the city's data center moratorium. The complaint, filed on June 15, alleges that Eagan is "seeking to regulate energy usage" through the moratorium, which it describes as "ill-advised" and "unlawful."
The interim ordinance, unanimously passed by the Eagan City Council on February 17, prohibits new data centers within 500 feet of residential homes or those using over 20 megawatts of electricity until February 17, 2027. Eagan Capital argues that under Minnesota law, the Minnesota Public Utilities Commission, not the city, has the authority to regulate the state's electricity industry and demand. The lawsuit further contends that the city acted arbitrarily and capriciously, claiming a data center's power usage is unrelated to its environmental impact or public welfare.
Eagan Capital is seeking a court declaration that the moratorium is void, that the city "exceeded its delegated authority," and that city officials are prohibited from enforcing it, along with monetary damages exceeding $50,000. The City of Eagan stated it is confident in its position and intends to vigorously defend the moratorium, noting that it previously denied an Interim Use Permit for Eagan Capital due to the proposed use not being lawful under current zoning.