Inver Grove Heights City Council OKs pause on data center development amid litigation threat

The Inver Grove Heights City Council has voted 3-2 to enact a one-year moratorium on data center development, a decision made early Friday morning after a third and final vote. This action follows passionate opposition from local residents, who raised concerns about noise pollution and electricity consumption during the public meeting.

Attorney Jacob W. Steen from Larkin Hoffman, representing QLevr, LLC, had previously sent a letter to the city in May, threatening a lawsuit if a moratorium was passed. The letter claimed the city lacked legal authority to halt QLevr's development and warned that such "unlawful actions may exceed $150 million" in damages. Jason Kuboushek, a partner at Iverson Reuvers and legal counsel for the city, anticipates legal action now that the moratorium has been approved.

Inver Grove Heights joins Minneapolis in implementing data center moratoriums, while Elk River's Planning Commission has recommended a similar measure. Professor James Coleman, a University of Minnesota legal expert, noted the unique questions communities across Minnesota face regarding data centers, balancing significant potential revenue with high electricity and water consumption.

Separately, a coalition against data centers, including Cathy Johnson, chair of the Coalition of Responsible Data Center Development, gathered at the Minnesota State Capitol in St. Paul, urging Gov. Tim Walz to implement a two-year statewide moratorium. Johnson, involved in a lawsuit against data center development in Farmington, questioned who truly benefits from these projects.