Minnesota Court of Appeals ruling pauses data center plans

News Clip1:07WCCO - CBS Minnesota·MN·6/9/2026

A Minnesota Court of Appeals ruling has stalled a proposed 500,000-square-foot data center in Faribault, siding with environmental advocates over concerns about air quality, noise, and greenhouse gas emissions. This legal battle is part of a broader trend where Minnesota cities are debating data center development, with some city councils proposing year-long moratoriums despite potential litigation from developers.

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Gov: Minnesota Court of Appeals, City of Faribault

A recent Minnesota Court of Appeals ruling has led to a slowdown in the development of a proposed 500,000-square-foot data center. The court ruled in favor of the Minnesota Center for Environmental Advocacy regarding a case in Faribault, which had raised concerns about the project's impact on air quality, noise pollution, and greenhouse gas emissions.

Residents near the proposed site have voiced strong opposition, citing worries about their families, pets, neighbors, and community. The Minnesota Center for Environmental Advocacy argued that residents had not received clear answers to their environmental questions, a stance the court ultimately upheld.

An attorney representing the City of Faribault expressed disappointment with the decision, stating that the city takes its environmental review obligations seriously. Archer Data Centers, the developer behind the project, acknowledged the court's decision, emphasizing their commitment to transparency during the initial environmental assessment process and stating their intention to move forward despite the ruling.

Amidst these legal battles, city councils across Minnesota are contemplating or moving forward with plans to enact one-year pauses or moratoriums on data center development, indicating a growing statewide debate over these projects and their environmental and community impacts.