Elk River brewery owner says future of business depends on whether city approves data center next door

In Elk River, Minnesota, a local brewery owner believes the future of his business depends on whether the city approves the installation of a data center right next door. 

The city could see up to $800,000 in additional revenue. The public power company believes that the data center could actually help stabilize rates for other customers. 

But Timothy Jones believes the data center would be a death sentence for his brewery, joining a chorus of neighbors who stand firmly in opposition to the proposal. 

"I think it would mean either closing this location and moving or closing completely," Jones said. 

The consistent humming that typically comes with the cooling equipment for a data center is what Jones is most concerned about. A third-party consultant submitted a study to the Elk River Planning Commission that concluded that the proposed center's noise pollution, with certain mitigation tools in place, falls below the legal limit in Minnesota. 

But Jones is drawn to the fact that his brewery is in an industrial zone, sitting just yards away from where one version of the plan places the cooling devices. The study shows that this area would experience noise exceeding 70 decibels; the legal limit is 80 decibels. 

"Which is the equivalent to a garbage disposal or an alarm clock. I just don't see people coming, even walking through to get a beer and enjoy it inside, let alone enjoy it on the patio and just have that constantly in their ear," Jones said.

On Wednesday, the city planning commission recommended that the city council vote against an ordinance that would effectively pave the way for the data center and others in industrial zones. The commission also recommended that the city take a six-month moratorium to re-evaluate the issue at hand and dig through ways to properly address public concerns. 

Ultimately, the city council can choose to vote however councilors see fit on July 6. The company behind the data center, Swervo Development, is promising 40 jobs that would come with a center that is essentially designed to store data for other companies. At the moment, the warehouse at the proposed site — 19178 Industrial Blvd. — is empty. 

The 33-megawatt facility is also an attractive proposal for Elk River Municipal Utilities. The public power company's general manager, Mark Hanson, said that the data center's power bill would be so high that it would provide a major boost to their revenue streams; the knock-on effect, according to Hanson, is that everyone else's rates have a better chance at stabilizing in the future.

"From a profitability, this is a substantial opportunity as a utility," Hanson said at Tuesday's planning commission meeting. 

Jones is hoping that the council takes the advice of the planning commissioners. 

"We just want to see transparency and a slower pace so that everything can be clear and informed before decisions are made," Jones said.