Inver Grove Heights City Council discussing proposed data center moratorium
The Inver Grove Heights City Council in Minnesota has voted 3-2 to enact a one-year moratorium on data center development, following a contentious meeting where residents voiced concerns over environmental impacts, electricity use, and noise. The decision comes despite a data center developer threatening a $150 million lawsuit if their project is halted by the moratorium.
The Inver Grove Heights City Council has voted 3-2 to approve a one-year moratorium on data center development within the city. The decision was made during a contentious early-morning meeting that was rescheduled after a previous chaotic session where the mayor walked out amid shouting.
Residents, including Carrie Lundberg who organized a petition with over 700 signatures, advocated for the pause to allow the city to study potential impacts, including environmental concerns, water supply, noise, and strain on the electrical grid. They also pushed for an Environmental Impact Worksheet (EAW) to be conducted. Jeff Reiner, a resident, urged the council to "grow a spine" and conduct a formal community process.
The vote proceeded despite a data center developer, proposing a 55,000-square-foot facility requiring five megawatts of electricity, threatening a lawsuit of over $150 million if their project is put on hold. City attorney Jason Kubitschek of Iverson Rivers Law Firm, retained by the League of Minnesota Cities, confirmed the developer's pre-litigation threat of significant damages. Excel Energy stated it would improve infrastructure to meet demand for a facility that would run on a dedicated, builder-paid line.
The moratorium grants a temporary victory to residents who opposed the project, but city officials acknowledge it could expose Inver Grove Heights to legal action from the unnamed developer.