Data center battle continues as Eagan faces lawsuit
Eagan Capital, a data center owner, has filed a lawsuit against the city of Eagan, Minnesota, challenging its recently enacted data center moratorium. The company argues that the moratorium constitutes electrical regulation, which falls under the purview of the Minnesota Public Utilities Commission, not local government. Eagan became the first city in the state to implement such a ban, with neighboring Inver Grove Heights following suit.
Eagan Capital, a data center owner, has initiated legal action against the City of Eagan, Minnesota, contesting the city's recently enacted data center moratorium. The lawsuit alleges that the city's temporary halt on data center development, implemented in February, oversteps its authority by infringing on electrical regulation, a domain reserved for the Minnesota Public Utilities Commission.
The city of Eagan was the first in Minnesota to impose such a moratorium, described as a temporary stop to the 'energy-hungry backbone of the booming AI industry.' Neighboring Inver Grove Heights has since adopted a similar measure. An Eagan spokesperson informed the Star Tribune that the city is 'confident in its position and intends to vigorously defend its moratorium through the legal process.' Eagan Capital seeks to expand its data center operations within the city.