Court pauses development on planned Google data center in Pine Island

Goodhue County District Judge Patrick Biren has issued a temporary injunction, pausing development on a Google-backed data center project known as "Project Skyway" in Pine Island, Minnesota. The injunction follows a lawsuit filed in October by the Minnesota Center for Environmental Advocacy (MCEA) against the city of Pine Island and developer Ryan Companies. MCEA contends that the city's approval of a conditional use permit in January for the 482-acre development, which includes at least 100 acres for the data center, was based on an inadequate Alternative Urban Areawide Review (AUAR).

The lawsuit alleges that the AUAR lacked specific details on the project's projected electricity and water consumption, as well as its potential noise and light impacts. Judge Biren sided with MCEA, noting that the defendants' failure to disclose certain records in response to a Minnesota Government Data Practices Act request raised concerns about irreparable harm. MCEA staff attorney Abigail Hencheck stated the decision acknowledges resident concerns about the data center's environmental effects.

Ryan Companies announced it is reviewing the order to determine its next steps. The city of Pine Island maintains that Project Skyway would use no more water than a residential development of the same size, but MCEA highlights that the fully built-out data center could increase the city's current water usage by 50%, potentially consuming up to 55.5 million gallons annually. Xcel Energy is slated to partner on the project, proposing 1,400 megawatts of wind energy, 200 megawatts of solar, and a 300-megawatt battery to meet electricity demands. MCEA disputes the city's figures, arguing they are based on studies for less intensive "technology center" or "light industrial development" rather than a hyperscale data center, which typically has higher resource demands.