Inver Grove Heights amends data center moratorium to avoid multi-million dollar lawsuit
The Inver Grove Heights City Council voted to amend its interim data center moratorium to allow developer QLevr to proceed with its data center plans. This decision came after QLevr filed a lawsuit challenging the moratorium, seeking over $150 million in damages. The amendment was made to avoid a costly legal battle, with the developer agreeing to dismiss the lawsuit in return.
The Inver Grove Heights City Council in Minnesota voted 3-1 to amend an interim data center moratorium, allowing Florida-based developer QLevr to move forward with a proposed 54,000-square-foot data center. This decision follows a lawsuit filed by QLevr in Dakota County District Court, challenging the validity of the city's moratorium, which was enacted in June to study potential data center impacts.
Attorneys for QLevr, represented by Larkin Hoffman, warned the city that damages sought in the lawsuit were expected to exceed $150 million. To avert a potentially multi-million dollar liability, the city agreed to amend its existing interim ordinance to exclude QLevr's application, in exchange for the developer dismissing the case without the city incurring damages. City documents indicated the city's liability insurance maxes out at $1 million, leaving taxpayers responsible for any costs beyond that.
Council members Tony Scales, John Murphy, and Sue Gliva voted for the amendment, citing a lack of viable alternatives to prevent the data center's development and avoid financial risk. Council member Mary T'Kach cast the sole dissenting vote, advocating for the city to continue litigating. The amendment to the moratorium was approved after three readings.
While the general moratorium remains in place until next June, QLevr's data center site plan application is now scheduled for consideration at the Sept. 28 city council meeting. If approved, further steps like a development contract and building permits would still be required.