Elk River City Council rejects ordinance amendment that would have allowed for a data center

Elk River, Minnesota, residents packed a city council meeting and spilled into an overflow room on Monday night as council members discussed a data center proposal. 

The proposed 60,000-square-foot facility would have brought an estimated 40 jobs and hundreds of thousands of dollars to the city. But ultimately, the Elk River City Council voted against an ordinance amendment that would have allowed for the project in the city's "light industrial" zone. 

Residents in Elk River have repeatedly raised questions over noise, water usage and transparency.

While the council still needs to vote on a conditional use permit for the project, Mayor John Dietz says the council will likely deny the permit. 

Dietz also recommended the city consider a one-year moratorium on data centers in order to study some centers already in use. 

The decision is a relief for Tim Jones, who owns Aegir Brewing, situated next door to the proposed data center.

"We can move forward as a business now," Jones said. "I think the city did a great job taking the time, and listening to people and understanding that there is a lot more to learn before they make a big decision like this for the community."

Several other Minnesota cities have already implemented a pause on data center development, including Eagan.

The city of Eagan passed a one-year moratorium back in February. WCCO learned Monday that Eagan faces a lawsuit filed by a data center company that called the moratorium "ill-advised" and "unlawful". 

A spokesperson for the City of Eagan said, in part, "The City is confident in its position and intends to vigorously defend its moratorium through the legal process."

Inver Grove Heights, Minnesota, officials also put a moratorium on data centers in place this year and face the threat of litigation.