Proposed Zoning Ordinance updates include data center definitions

Proposed Zoning Ordinance updates include data center definitions

News ClipSouthernminn.com·Owatonna, Steele County, MN·10/29/2026

Owatonna is proposing updates to its zoning ordinance to define and regulate minor and major data centers, despite having no current data center projects planned. The proposal would allow minor facilities only as accessory uses and require major facilities to obtain a conditional use permit, with utility, wastewater, stormwater and noise requirements.

zoninggovernmentelectricitywaterenvironmental
Gov: Owatonna Planning Commission, City of Owatonna, Owatonna City Council, Owatonna Public Utilities, Southern Minnesota Municipal Power Agency, Minnesota Pollution Control Agency

The Owatonna Planning Commission is updating the city’s Zoning and Subdivision Ordinance to establish definitions and use categories for data centers. Community Development Manager Greg Kruschke said Owatonna is not currently considering a data center and lacks the electrical capacity and transmission infrastructure needed for a large-scale facility.

The October proposal would define minor data centers as facilities with up to 5 megawatts of designed IT load and major data centers as those exceeding 5 megawatts. Minor facilities would be allowed only as accessory uses in specified business and industrial districts, while major facilities would require a conditional use permit, public hearing and notice. Owatonna Public Utilities would review large-load impacts, while projects would also need to meet wastewater, stormwater, infrastructure and state noise-control requirements.

The draft ordinance is expected to proceed through a public hearing and two readings before the Owatonna City Council, with a proposed effective date of Jan. 1, 2027, if approved.