Monticello Tech data center proposal comes into focus
Monticello Tech has submitted a revised application for a 547-acre data center campus in Monticello, Minnesota, providing clearer details on water use, electricity, and landscaping. The proposal is currently undergoing a completeness review by city staff before proceeding to formal land-use approval and public hearings. Local residents have raised concerns about water consumption and noise, which the application addresses with proposed closed-loop cooling and noise mitigation plans.
Monticello Tech has submitted a significantly revised application for a proposed 547-acre data center campus south of Monticello, Minnesota, offering residents and city officials the clearest view yet of the extensive project. The application, filed on August 3 after city staff deemed an earlier submission incomplete, includes hundreds of pages of detailed engineering plans, technical studies, and narrative documents addressing everything from water usage and electrical infrastructure to landscaping and construction staging. The development aims to establish a land-use framework for up to 3 million square feet of data center space across as many as eight principal buildings, although initial planning is based on a conceptual 2 million square feet.
A key revision addresses community concerns regarding water consumption. Monticello Tech proposes a closed-loop, air-cooled system, which circulates water within a sealed network, significantly reducing water demand compared to traditional evaporative cooling. The system is estimated to use approximately 75,000 gallons per day, comparable to 273 homes, and city engineering studies suggest it can be accommodated by Monticello's existing water system. Furthermore, the updated plans detail how electricity would be provided via a new Xcel Energy substation connected to existing transmission lines, with all transmission upgrades to be funded by the developer or future operator.
The project is currently undergoing a completeness review by city staff, who have until August 21 to determine if the application meets all requirements of the city's recently adopted Data Center Planned Unit Development ordinance. If deemed complete, the proposal will advance to detailed technical review and then to public hearings before the Planning Commission and City Council. While the end-user company remains unidentified, and final architectural and operational details will be determined later, the application provides comprehensive plans for infrastructure, phased construction over four to eight years starting no earlier than 2028, and extensive perimeter landscaping designed for 100% year-round opacity. The developer estimates the project could generate approximately $7 million annually in property taxes and privately fund over $70 million in regional water and sewer infrastructure, benefitting nearby properties.