Thief River Falls seeks moratorium on data centers coming to the city
The City of Thief River Falls plans to introduce an 18-month moratorium on data center projects due to increasing inquiries and a need to develop comprehensive ordinances. The City Council has scheduled a public hearing for September 15th to consider adopting the interim ordinance. This measure aims to establish standards for location, infrastructure, water, noise, electricity rates, and property tax implications while protecting residents and the city from potential lawsuits.
Thief River Falls, Minnesota, is moving to impose an 18-month moratorium on new data center developments following increasing inquiries from four to five prospective data center operators.
Mayor Mike Lorenson stated that the city needs time to research and develop an ordinance that will establish comprehensive standards for data center location, infrastructure, water usage, noise levels, and rate-payer protection. The City Council unanimously voted to set a public hearing for Tuesday, September 15, to consider the adoption of this interim ordinance.
The mayor highlighted concerns about investors' expectations, specifically regarding the desire to purchase electricity at cost, which he deemed irresponsible and unfair to taxpayers given the lack of financial incentives for the city. Another point of contention is the property tax implications of modular data centers, which are often considered non-permanent structures and may not be subject to standard property taxes. The city's proactive measure is also intended to protect itself from potential lawsuits should a company attempt to move forward with development without established regulations.