Otsego Council passes 1-year data centers moratorium
The Otsego City Council unanimously approved a one-year moratorium on data center projects, allowing the city to study potential impacts and develop new regulations. This decision follows growing public opposition to data centers in Minnesota and aims to prevent lawsuits by establishing clear rules before project applications are submitted. The city plans to update its zoning ordinances to address concerns like electricity and water usage.
The Otsego City Council in Minnesota unanimously enacted a one-year moratorium on data center projects. This decision, made on a Monday, allows city staff to conduct a comprehensive study on the potential benefits and impacts of data centers, with the goal of informing future regulations.
Otsego, which currently has no data centers and no pending proposals, joins a growing number of Minnesota cities, including Elk River and Wright County, in implementing such moratoriums due to increasing data center proposals in smaller communities and strong public pushback. City Planner Dan Licht stated that the timing is ideal, as it prevents the city from being pressured by active applications and avoids potential lawsuits, referencing a case where a developer is suing the City of Eagan over its moratorium. Council member Ryan Dunlap also noted that other cities faced lawsuits when attempting moratoriums with pending data center requests.
The moratorium is intended to provide time for Otsego to develop uniform standards and update its zoning ordinances, which currently permit data centers automatically if general requirements are met. Licht explained that existing zoning does not adequately address the scale and impacts of data centers, particularly regarding setbacks, electricity, water usage, and noise. Residents, including Jonathan Heinrichs, voiced concerns during public comments about data centers' consumption of water and electricity and their impact on property values.
Mayor Jessica Stockamp expressed disappointment with the Minnesota Legislature for not sufficiently addressing data center issues, such as noise regulations. Council member Michelle Lund suggested exploring legal avenues to require data centers to generate 50% of their power from renewable sources. The moratorium can be extended for an additional six months if necessary, but officials plan to lift it early if new regulations are adopted sooner.