Data center ban proposal paused by Inver Grove Heights City Council
The Inver Grove Heights City Council has delayed a decision on a proposed one-year data center moratorium ordinance after Qlevr, a data company, threatened legal action. Qlevr argues that state law protects its application, which was submitted before the moratorium was considered. The council will revisit the topic at its June meeting.
The Inver Grove Heights City Council has opted to delay a decision on a proposed one-year data center moratorium ordinance, following a legal threat from data company Qlevr. The council had previously voted 3-2 in favor of the moratorium, but Qlevr contended that its data center application was submitted before the proposed ban, making it exempt under state law.
QLevr LLC plans to construct a 54,000 square-foot facility at the former Travel Tags site, a project that initially prompted the city to consider the moratorium. The company argues that any decision not based on objective zoning criteria would expose the city to significant legal risk. While local leaders from Xcel Energy have discussed potential impacts on the electrical grid, Qlevr emphasizes its project's minimal environmental footprint, including an estimated five megawatts of power usage and closed-loop water cooling similar to one or two single-family homes.
The council's latest move means the moratorium ordinance decision is postponed until at least its June meeting. This delay highlights the growing tension between communities seeking to understand and regulate data center development and companies pushing to advance their projects amid rising demand for AI infrastructure.