Inver Grove Heights saves taxpayers millions by avoiding lawsuit; data center moves forward

News Clip2:39KSTP 5 Eyewitness News·Inver Grove Heights, Dakota County, MN·9/15/2026

Inver Grove Heights taxpayers are off the hook for a multi-million dollar lawsuit after the City Council voted to exclude data center company Clever from a previously enacted moratorium. This decision allows Clever's 54,000 square foot data center project to move forward, despite community pushback, with a major site plan application vote scheduled in two weeks. The city will also require sound testing and specify generator usage.

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Gov: Inver Grove Heights City Council

The Inver Grove Heights City Council has taken action to avoid a potential $20 million lawsuit, saving taxpayers from a significant financial burden. The lawsuit was threatened by data center company Clever, which aims to build a 54,000 square foot facility at the former Travel Tags building along Carman Avenue East.

Clever initiated legal action after a moratorium was passed, arguing that they were in good standing and in the developmental phase of their project before the moratorium was enacted. To mitigate the lawsuit risk, the City Council voted to exclude Clever from the moratorium, a decision that essentially ensures the data center project will proceed. A council member acknowledged the significant community pushback against the project but stated that, as of now, its construction is all but certain.

The next step for the project is a vote on the major site plan application, scheduled to take place in two weeks. The city has added conditions, including regulations on when generators can be used at the site and requirements for sound testing to be conducted by the city once the facility is operational. Residents are also hopeful that the city will review the overall process for future developments. While the company still needs to secure building permits after site plan approval, the current council decision marks a significant step forward for Clever's data center.