Elk River delays data center decision after residents raise concerns
Residents in Elk River, Minnesota, voiced strong opposition at a City Council hearing regarding a proposed 33-megawatt data center by Elk River Capital LLC and Swervo Development. Concerns focused on noise, property values, and the impact on community infrastructure, including electricity and water. The City Council delayed a decision and continued the public hearing to a later date, with a zoning ordinance amendment being a prerequisite for the project's progression.
The Elk River City Council delayed a decision on a proposed 33-megawatt data center after a public hearing on June 15 was dominated by resident opposition. The project, proposed by Michael Margulies of Elk River Capital LLC, operating as Swervo Development, involves converting a vacant 62,000-square-foot manufacturing building into a data center. Residents raised concerns about noise, property values, water usage, electricity demand, and the overall long-term impact on the community, including its proximity to schools and businesses.
Elk River Municipal Utilities General Manager Mark Hanson addressed the council, explaining that the city's electric and water systems have sufficient capacity and that the project would pose little risk to utility customers, potentially offering financial benefits. Developer Michael Margulies stated that the company is collaborating with city staff and conducting additional studies, including a comprehensive noise analysis.
The project requires a zoning ordinance amendment and a conditional use permit, as data centers are not currently permitted in Elk River's Light Industrial district. The Elk River Planning Commission is scheduled to revisit the ordinance amendment on June 23, with the City Council's July 6 hearing focusing on whether to allow additional data centers and applicable standards. Several residents called for a moratorium on new data centers to allow for more research and regulation development. The council took no immediate action, continuing the public hearing to July 6.