Residents urge delay as Elk River weighs data center proposal
Residents in Elk River, Minnesota, voiced strong opposition to a proposed 33-megawatt data center, raising concerns about noise, property values, and environmental impacts during a public hearing. Despite Elk River Municipal Utilities officials asserting low risk to city infrastructure, the City Council continued the hearing without action, pending review of a zoning ordinance amendment and conditional use permit. Residents also called for a moratorium on new data centers.
A June 15 public hearing in Elk River, Minnesota, saw significant public opposition to a proposed 33-megawatt data center project. Residents expressed concerns about low-frequency noise, backup generators, water usage, impacts on property values, and the proximity to schools and businesses. Abby Huselid, a Concordia College student, and Tony Sofield, a resident, were among those urging city officials to consider long-term community impacts and the need for more information.
Michael Margulies, representing Elk River Capital LLC and Swervo Development, which includes owner Ned Abdul, presented plans to convert a 62,000-square-foot former manufacturing facility into the data center. Margulies noted ongoing work with city staff, including a forthcoming comprehensive noise study. Elk River Municipal Utilities General Manager Mark Hanson addressed utility concerns, stating the city's electric system has ample excess capacity (206 MW capacity vs. 76 MW peak demand, projected to rise to 112 MW with the data center by 2029) and that the closed-loop glycol cooling system would require minimal water.
Hanson emphasized that the project would pose little risk to utility customers, provide long-term financial benefits, and that the developer would cover all infrastructure costs and prepay electric bills. He also highlighted that Elk River already hosts two data centers that have operated for approximately 20 years. Despite these reassurances, residents like Jan Filer, a realtor, voiced fears over the unknown impacting homeowner investments, while Tim Jones, owner of Aegir Brewing Co. located next to the site, expressed concerns about noise affecting his business's outdoor patio.
After presentations and testimony, the Elk River City Council took no action and continued the public hearing to July 6. The developer is seeking both an ordinance amendment to allow data centers in the Light Industrial district and a conditional use permit. The Elk River Planning Commission is scheduled to revisit the ordinance amendment on June 23 before making a recommendation to the City Council, which is expected to decide on allowing additional data centers and applicable restrictions on July 6.