Apple Valley continues to deny data center use

The city of Apple Valley, Minnesota, has repeatedly denied a proposal by Oppidan Development and landowner Rockport LLC to rezone 134 acres for a 1 million-square-foot data center technology park. The proposed site, located southwest of County Road 42 and Pilot Knob Road, was intended for five data center buildings and several support structures. The City Council unanimously rejected a preliminary plat, site and building plan, building permit, and conditional use permit on March 26, following a unanimous recommendation for denial from the Planning Commission on March 18. The city's denials are primarily based on the proposal's inconsistency with its Comprehensive Plan, which designates the area for diverse uses such as retail, hotel, and office, not a large, homogenous mixed-business campus. A significant concern also revolves around the city's inability to fund the substantial water treatment and storage expansions required to meet the data center's projected water needs. Apple Valley is already facing water issues, including the shutdown of two wells due to PFAS contamination and a projected $106 million need for water infrastructure by 2030, for which it is seeking state bond funding. Oppidan and Rockport initiated their rezoning efforts in February 2025, attempting to change the land from "Sand and Gravel" to a newly created Mixed Use Business Campus district designed to accommodate data centers. Despite presenting economic benefits, including thousands of construction jobs, 200 permanent "blue collar tech" jobs, and a $4.5 million annual tax increase, their applications consistently lacked support from city officials. Rockport disputed the city's water analysis and, in January, indicated its intention to proceed "for legal reasons" after its most recent extension request expired on March 31. Public comments and resident opposition have also cited concerns over water, electricity, noise, traffic, and land use.