Blue Earth to Get Third Data Center by 2027
The city of Blue Earth, Minnesota, is embracing data center development, with two facilities currently operating and a third planned by 2027. Local officials cite low-cost electricity and significant tax revenue as key benefits, while proactively addressing community concerns like noise and water usage. The city administrator noted that new businesses, including data centers, are welcomed as long as they meet existing building and zoning codes.
The city of Blue Earth, Minnesota, is poised to welcome a third data center by 2027, contrasting with other cities like Mankato that are implementing moratoriums on such developments. Blue Earth currently hosts two data centers, with the new facility planned for a 46-acre property west of the West Industrial Park, shared with another company, Talus Ag. Tim Stoner, manager of Blue Earth Light and Water (BELW), highlighted the city's appeal as a "highly desired area" for data centers.
The primary draw for these facilities is the availability of low-cost electricity from BELW, though data centers pay market rates for the power. The expansion in data centers is projected to significantly increase the city's electrical power consumption from 30 megawatts per day to 140 megawatts, which will provide a substantial boost to local revenue. Stoner explained that the revenue generated from increased electricity sales, property taxes from the new data center, and city sales tax on electricity could contribute as much as $1.27 million in extra income to the city starting after next year, potentially preventing electrical rate hikes for residents.
Local officials have diligently studied the potential impacts of data centers, including sound generation, water use, and the possibility of companies leaving. Stoner assured residents that efforts are underway to limit noise and that the data centers do not use water for cooling. City administrator Dawn Collins reiterated the council's welcoming stance towards new businesses that comply with all building ordinances and zoning codes, emphasizing the role of local governance in these decisions.