Elk River City Council rejects data center ordinance, considers moratorium
The Elk River City Council unanimously rejected an ordinance to allow for a data center, effectively halting the proposed project due to resident concerns over noise and water usage. The council is now considering a moratorium on data center construction. This follows similar actions in other Minnesota cities like Eagan and Inver Grove Heights, both of which have enacted moratoriums and are now facing lawsuits from data center companies.
The Elk River City Council voted unanimously against an ordinance amendment that would have allowed a data center project, effectively shutting down the proposed facility. Residents had expressed repeated concerns regarding noise, water usage, and transparency. Following this decision, Mayor John Dietz indicated the City Council is now taking steps toward implementing a moratorium on data center construction.
A local business owner, EIR Brewing, expressed relief, stating the project's uncertainty had paused expansion plans. The council's move comes as other Minnesota cities grapple with similar issues. Eagan, for instance, enacted a one-year moratorium in February but now faces a lawsuit from an unnamed data center company, which claims the moratorium is "ill-advised and unlawful." A spokesperson for Eagan stated the city is confident in its position and intends to defend the moratorium vigorously.
Inver Grove Heights has also put a moratorium on data centers in place this year and is similarly facing the threat of litigation from developers. The debate over data center development continues across the state, with legal challenges emerging against cities implementing construction pauses.