Officials in Elk River, Minnesota, have denied a zoning application for a proposed data center project and are considering a year-long moratorium on new developments.
Swervo Development Corp. affiliate Elk River Capital was proposing to convert an existing 60,000-square-foot (5,575 sqm) industrial building at 19178 Industrial Blvd NW into a 33MW data center.
However, the Elk River City Council this week voted against an ordinance amendment that would have allowed for the project in the city’s “light industrial” zone. As reported by CBS, the council still needs to vote on a conditional use permit for the project, but the council has indicated it will likely deny the permit.
More about future plans…
This week’s meeting also saw the council ask city staff to draft a one-year moratorium on new data centers for consideration at an upcoming meeting.
More about similar projects…
Elsewhere in Minnesota, Swervo has partnered with Eagan Capital to convert a former Unisys data center in Eagan into a colocation facility. A local moratorium in the Dakota County city, however, is blocking expansion plans. Swervo affiliate Eagan Capital is filing a lawsuit to lift the moratorium.
Here are some earlier stories on the project:
- Elk River rejects changing rules to allow data centers (July 8, 2026 MPR)
- Public pushes back against proposed data center in Elk River (June 15, 2026 KARE 11)
- Proposed Elk River data center faces strong pushback (June 2, 2026 Hometown Source)
- Elk River brewery owner says future of business depends on whether city approves data center next door (June 24, 2026 CBS News)
- Minneapolis data center pause heads back to City Council (June 17, 2026 MPR)
- Proposed data center in Elk River faces opposition from residents (June 15, 2026 CBS News)