Minnesota cities are trying to decode data center impacts

Minnesota cities, supported by the University of Minnesota Extension, are collaborating on a $200,000 research project to develop data-driven insights into the impacts of data center development. The initiative, sparked by Byron City Administrator Al Roder, aims to equip local government officials with scientific information to make informed decisions about future proposals, rather than relying on emotional responses.

The year-long project involves city administrators from Byron, Stewartville, and Lewiston, working with university researchers and legal/environmental experts. Workshops have been held for city administrators and elected officials throughout southeast Minnesota to identify key questions. The goal is to create tools that help local leaders balance potential economic benefits, such as stemming rising tax pressures on residential properties, with concerns about environmental and infrastructure impacts.

Initial discussions have covered topics ranging from environmental considerations like water usage to the vast electricity demands of data centers, noting a trend towards air-cooling. Carrie Jennings, research and policy director at Freshwater and a U of M faculty member, highlighted the shift to electricity reliance and advised cities to proactively set limits on water and electricity use, and establish zoning requirements or upgrade payment terms for developers.

Stewartville City Administrator Bill Schimmel mentioned the city is reviewing its comprehensive plan and zoning policies to create safeguards without hindering development, with similar actions in Byron and Lewiston. The research findings, expected to be released in August or September, are anticipated to provide statewide benefits, extending beyond data centers to any large industrial user in rural Minnesota.