Judge sides with Lakeville in data center review lawsuit
A Dakota County judge ruled in favor of the City of Lakeville, affirming the adequacy of its environmental review for the Olam Property. The Minnesota Center for Environmental Advocacy had sued, arguing the review was insufficient given the potential for a data center on the site. Lakeville officials expressed satisfaction with the decision, which they believe clears the way for continued industrial investment.
A Dakota County judge has ruled in favor of the City of Lakeville in a lawsuit filed by the Minnesota Center for Environmental Advocacy (MCEA).
The MCEA had challenged the city's environmental review of the 152-acre Olam Property, arguing that it failed to adequately consider the possibility of a data center being constructed on the site. The group contended that email correspondence referencing a potential data center should have been added to the administrative record, highlighting the significant environmental implications of such a project, particularly regarding water and energy usage.
However, the Hon. Bryce A.D. Ehrman disagreed, stating that the existing hundreds of pages of documents were sufficient and that additional references to a data center as a potential use were no different from other documents already on file. Lakeville Mayor Luke Hellier expressed satisfaction with the outcome, affirming the city's confidence in its review process and hoping the decision will encourage continued industrial investment.
While Olam Holdings 1 LLC, an entity related to Terawatt Infrastructure, has not submitted a specific data center project for review, an Alternative Urban Areawide Review (AUAR) in 2025 evaluated potential industrial or office park uses for the site. Despite the ruling, MCEA staff attorney Luke Norquist stated that while they disagree with the judge's determination of adequacy, the lawsuit provided clarity for the community and that the court acknowledged the city's vague analysis "very well may limit the future applicability" of the study for data center development. He emphasized that the order does not green-light a data center project in Lakeville.