Proposed Elk River data center faces strong pushback
A proposed 33-megawatt data center by Elk River Capital LLC in Elk River, Minnesota, is encountering strong resident opposition at Planning Commission meetings. Concerns primarily focus on potential noise, future data center proliferation due to zoning changes, and the impact on local utilities, despite the municipal utility confirming sufficient capacity. The project requires an amendment to the city's zoning ordinance and approval of a Conditional Use Permit, with decisions pending from the Planning Commission and City Council.
A proposal by developer Ned Abdul, through his company Elk River Capital LLC, to convert an existing industrial building into a 33-megawatt data center in Elk River, Minnesota, has met with significant resident opposition. During a recent Elk River Planning Commission meeting, over 50 residents voiced concerns regarding potential noise, the precedent set by amending the city's Light Industrial (L-1) zoning to allow data centers, and the project's impact on local infrastructure. Opponents fear the zoning change could lead to a proliferation of additional data centers beyond this specific project.
Elk River Capital LLC is seeking an amendment to the City of Elk River's zoning ordinance to include data centers as an allowed use in L-1 zones, along with establishing standards for energy usage, size, noise levels, and cooling systems. The company is also requesting approval for a Conditional Use Permit. Ned Abdul, who also heads Swervo Development Corp, and his attorney spoke in favor of the project, highlighting the use of a closed-loop cooling system and a noise study underway. They anticipate the facility would operate 24/7 with 40 full-time employees, primarily renting server space.
Mark Hanson, general manager for Elk River Municipal Utility (ERMU), addressed concerns about electricity and rates. He stated ERMU would require the developer to cover all connection costs, preventing impacts on ratepayers. While the data center would increase the utility's energy usage by 50-60%, Hanson confirmed ERMU has excess generation capacity. He also noted that consistent electricity consumption from a single large customer could help stabilize utility rates and increase city revenues through a fee-in-lieu-of-taxes agreement. The Planning Commission has not yet voted, planning another public hearing on June 23 before making a recommendation, with the City Council scheduled to vote on July 6.