Woodbury Approves Data Center Moratorium After Questions About Water, Power

Woodbury Approves Data Center Moratorium After Questions About Water, Power

News ClipWoodbury News Net·Woodbury, Washington County, MN·9/24/2026

Woodbury's City Council approved a one-year moratorium on new data centers and expansions to study concerns about water usage, electricity demand, noise, and potential zoning changes. The moratorium aims to establish new regulations that could impact both future development and existing facilities operated by companies like IronGate and Medtronic. Residents voiced concerns regarding infrastructure costs, air quality, and drinking water supply.

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Gov: Woodbury City Council, Woodbury City Planner, Woodbury City Attorney, Woodbury Planning Commission

The Woodbury City Council unanimously approved a moratorium on new data centers and expansions beyond existing approvals on September 23. This one-year pause will allow the city to study the industry's impacts, including water use, electricity demand, noise, and necessary zoning adjustments, before new proposals arise.

City Planner Eric Searles confirmed there are no active applications from data center developers. The moratorium, which took effect immediately, blocks related rezoning proposals, comprehensive plan amendments, conditional use permits, and variances, as well as applications to establish or expand data centers. It also targets proposed water or sewer users whose annual consumption would place them among the city's largest users.

Council members, including Kim Wilson and Jennifer Santini, discussed the moratorium's scope, clarifying that it cannot retroactively limit operations within existing approved capacities. Resident Susan Asplund raised concerns about who would bear the costs of supporting additional electricity demand, the impact on Woodbury ratepayers, and the effects of backup generators and air quality, especially in light of the city's ongoing PFAS contamination treatment for drinking water. Mayor Anne Burt noted that noise had not been an apparent issue at one existing facility, though the study will examine it.

Woodbury currently hosts three data centers: two IronGate facilities and one Medtronic facility. IronGate's properties at 401 Bielenberg Drive and 500 Bielenberg Drive reportedly have 15 megawatts and 6 megawatts of capacity, respectively. The city's study is expected to combine independent research with findings from other communities, with initial results anticipated in early 2027.