Marshall City Council Approves Moratorium, Delays Data Center Project

The Marshall City Council has enacted a one-year moratorium on data center construction, effectively delaying a controversial project by Alterra Development. The moratorium, approved at an August 3rd meeting, will halt any new data center approvals within city limits until August 2027. This decision follows significant community opposition and concerns regarding the project's impact on the environment, particularly its proximity to wetlands and a lake, and its substantial demands on electricity and water resources.

Alterra Development had purchased 270 acres at the Brooks Industrial Park last October, intending to build a data center. While the company stated its plans would generate hundreds of skilled jobs and millions in tax revenue, residents voiced dissatisfaction over not having a say in the project's progression. Mayor Scott Wolfersberger emphasized the moratorium provides an opportunity to address the community's concerns, including issues like low-frequency noise and energy consumption.

Alterra has reportedly scaled back its initial concept, deciding not to build a gas generation plant, which would reduce the project's energy use by 60%, reclassifying it as an "enterprise class" rather than "hyperscale" data center. Mayor Wolfersberger also addressed what he described as misinformation regarding water usage, stating modern closed-loop systems use significantly less water than commonly believed. The city intends to use the moratorium period to learn more and ask the right questions, also monitoring potential state-level data center legislation.