Data Center debate in Pine Island as judge pauses development

Data Center debate in Pine Island as judge pauses development

News Clip5 EYEWITNESS NEWS·Pine Island, Goodhue County, MN·7/24/2026

A planned data center project in Pine Island, Minnesota, called Project Skyway, has been paused by a lawsuit filed by the Minnesota Center for Environmental Advocacy. The nonprofit sued the city and developer Ryan Companies, alleging the city did not conduct an adequate environmental impact study before approving a conditional use permit. Construction was scheduled to start this month but is now halted pending a court ruling.

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Gov: Pine Island City Council, Pine Island

A data center project named Project Skyway in Pine Island, Minnesota, has been temporarily halted by a lawsuit. The Minnesota Center for Environmental Advocacy (MCEA) sued the city of Pine Island and developer Ryan Companies, alleging that the city council failed to conduct an adequate environmental impact study before approving a conditional use permit for the nearly 500-acre development. Construction was slated to begin this month near Highway 52, but a judge's pause means it cannot proceed until a court ruling.

Residents, including Janet Hanke and Aubree Derksen, voiced strong opposition, citing concerns about the city's future, transparency issues, and the feeling that community voices were overridden by "big tech." Derksen also mentioned a petition was started against the data center. Kathryn Hoffman, CEO of MCEA, emphasized the lawsuit's aim for a more democratic and transparent process regarding the project's potential effects on local resources like water and air quality. In contrast, supporter Doug Sailer argued the project would generate hundreds of millions in tax revenue, crucial for local schools and services, with minimal impact on traffic, noise, or city services. City officials have declined to comment due to the ongoing litigation, which will ultimately decide the project's fate.