Elk River City Council rejects ordinance amendment that would have allowed for a data center

Elk River City Council rejects ordinance amendment that would have allowed for a data center

News ClipCBS News·Elk River, Sherburne County, MN·7/7/2026

The Elk River City Council rejected an ordinance amendment that would have permitted a 60,000-square-foot data center, influenced by resident concerns about noise, water usage, and transparency. Mayor John Dietz subsequently recommended considering a one-year moratorium on data center development. This decision mirrors actions in other Minnesota cities like Eagan, which faces a lawsuit over its own data center moratorium.

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Gov: Elk River City Council, City of Eagan, Inver Grove Heights officials, Mayor John Dietz

Residents of Elk River, Minnesota, packed a city council meeting to discuss a proposed 60,000-square-foot data center facility. Despite estimates of 40 new jobs and significant revenue for the city, the Elk River City Council voted against an ordinance amendment that would have allowed the project in a "light industrial" zone. This decision followed repeated concerns from residents regarding potential noise, water usage, and a lack of transparency from the developers.

Mayor John Dietz indicated that the council would likely deny a conditional use permit for the project, which still requires a vote. He also suggested that the city consider enacting a one-year moratorium on data center development to allow for further study of operational data centers. This move was welcomed by local business owners, such as Tim Jones of Aegir Brewing, whose establishment is next to the proposed site.

The article notes that several other Minnesota cities have already implemented similar pauses on data center development. Eagan, Minnesota, enacted a one-year moratorium in February and is now facing a lawsuit from an unnamed data center company, which has called Eagan's moratorium "ill-advised" and "unlawful." Officials in Inver Grove Heights, Minnesota, also put a moratorium in place this year and are confronting potential litigation. The City of Eagan spokesperson affirmed confidence in their position and intent to defend the moratorium legally.