Council rejects data center zoning amendment, calls for one-year study
The Elk River City Council unanimously rejected a proposed zoning amendment that would have allowed data centers as a conditional use in Light Industrial districts, following extensive public opposition. The council also directed staff to prepare a one-year moratorium on new data center applications to allow time for further study and policy development. This decision effectively blocks the current data center proposal and pauses future applications.
The Elk River City Council unanimously rejected a proposed zoning amendment on July 6 that would have permitted data centers as a conditional use in the city's Light Industrial districts. This decision followed weeks of public hearings, community debate, and numerous petitions from residents concerned about noise, water use, electrical demand, and environmental impacts.
While council members, including Mike Beyer, J. Brian Calva, Cory Grupa, and Jennifer Wagner, stressed that their vote was not an outright rejection of data centers as an industry, they concluded that the specific proposal from Elk River Capital LLC and Swervo Development was not an appropriate fit for the proposed location at 19178 Industrial Blvd. NW. They emphasized the need for more research and a more flexible review process for future projects.
In response, the council also unanimously directed city staff to develop a one-year moratorium on new data center applications. This moratorium aims to provide city officials with time to study comparable facilities, evaluate potential impacts, and determine appropriate standards and locations for data centers within Elk River's comprehensive plan. Mayor John Dietz supported this approach, advocating for individual project reviews through a Planned Unit Development (PUD) process rather than broad ordinance amendments, and highlighted the need to address unresolved questions about electrical transmission capacity from Great River Energy.
The Planning Commission had previously recommended denying the amendment, and the City Council is expected to consider findings supporting the denial of the ordinance amendment on July 20. The public hearing for the separate conditional use permit application was continued until August 3, with staff expected to recommend its denial, effectively blocking the specific 33-megawatt data center project.