Kearney City Council approves Project Horizon data center
The Kearney City Council unanimously approved the controversial Project Horizon data center redevelopment plan after months of debate. The project, proposed by SDV and Mara Holdings, faced resident concerns regarding water use, noise, and electricity, prompting the city to draft and adopt extensive new data center regulations. The expanded facility is projected to use significantly more electricity and water, but the city believes it will not jeopardize resources and will bring economic benefits.
The Kearney City Council unanimously approved the Project Horizon data center redevelopment plan, proposed by developers SDV and Mara Holdings, following months of public debate and resident concerns. The project aims to expand an existing cryptocurrency mining facility in northeast Kearney, increasing its power consumption from approximately 100 megawatts to 368 megawatts and its water usage to 2 to 5 million gallons annually through a closed-loop cooling system.
Residents raised significant concerns during public hearings, primarily focusing on water use, noise levels, the project's proximity to a veterans' home, and community benefits. Mayor Jonathan Nikkila acknowledged the contentious nature of the project and the community's valid concerns, stating that officials expected strong opinions.
In response to public input and a recognized lack of specific regulations, City Manager Brenda Jensen confirmed that the city drafted and adopted ten pages of supplemental regulations. These new rules specifically address water efficiency, noise levels (requiring quieter operation than an arterial road), and mandate conditional use permits with multiple public hearings and impact studies for data center applications. Electricity regulations are largely covered by state law LB1010, which requires high-energy users to cover grid strain costs.
Despite the opposition, the council approved the application after nearly three hours of discussion, with city staff asserting the project would not jeopardize city resources and would bring benefits such as $20 million in annual property taxes and 59 jobs. Developers plan to begin construction in late 2026, with the first phase operational by spring 2028. SDV expressed gratitude to the city, council, and planning commission, emphasizing their commitment to being a responsible neighbor and aligning with the city's goals.