Data center lawsuit could cost Inver Grove Heights taxpayers millions; path to avoid it moves forward
The city of Inver Grove Heights, Minnesota, faces a lawsuit from data center company Q'Levr after enacting a one-year moratorium on data centers. The lawsuit could cost city taxpayers millions, prompting the City Council to consider amending the moratorium to exclude Q'Levr's project. The council has voted to change the moratorium, but two more readings are required before a final decision.
Inver Grove Heights, Minnesota, is embroiled in a legal battle that could cost its taxpayers millions after the City Council approved a one-year moratorium on data centers. The lawsuit was filed by Q'Levr, a data center company that claims its application was in good standing before the moratorium was enacted. City leaders were informed that losing the lawsuit could result in a $20 million cost, which Mayor Brenda Dietrich highlighted would significantly increase residents' city taxes.
A city lawyer indicated that the lawsuit would be dropped if the city exempts Q'Levr from the moratorium. Q'Levr intends to build a 54,000-square-foot facility at the former Travel Tags building. The council has since voted to modify the moratorium to exclude the company, though this change still requires two more readings before a final vote.
During public comments, residents, including Heather Thornton, advocated for more community feedback opportunities before the final decision. While the city currently accepts written comments, at least two council members supported adding a public hearing as the process moves forward.