KSTP Eyewitness News reports…

A legal fight over a data center could cost Inver Grove Heights residents millions if the city loses.

The city is being sued by a data center company that submitted its application and said it was in good standing with the city before the Inver Grove Heights City Council approved a one-year moratorium on data centers.

City leaders learned Monday night that losing the lawsuit could cost $20 million — Mayor Brenda Dietrich put that figure into perspective, noting that taxpayers would be footing the bill.

“A resident’s city taxes would go from $1,833 to $3,053, which is an annual increase of $1,220 or 67%. So, just framing that up in real dollar amounts,” said Dietrich.
A city lawyer said Monday the lawsuit would be dropped if the city excludes Q’Levr from that recently passed one-year data center moratorium. Q’Levr wants to build a 54-thousand-square-foot facility at the former Travel Tags building along Carmen Avenue East.
The council voted to change the moratorium to exclude the company, but there are still two more readings before a final vote.

The city is asking for input…

As it sits now, the city is asking people to send written comments. The mayor and council would have to add a public hearing as the process moves forward, and at least two council members supported that Monday night.

I wrote about the Aug 5, Harmony City Council meeting earlier, but The Fillmore County Journal provides a more complete account, starting with…

In a joint planning session on August 5 the Harmony City Council, the Harmony EDA and the Harmony Planning and Zoning came together to review a draft data center ordinance for the city. Mayor Steve Donney opened the meeting and explained that there would be no public comment; the public was encouraged to submit written comments following the meeting.

City Attorney Greg Schieber introduced Soren Mattick, a municipal attorney from the Twin Cities who was assisting Harmony with the ordinance. Harmony had been approached by MiEnergy last fall about the possibility of building a data center in Harmony. Since the city had no ordinance on the books about such centers, the EDA, P & Z and council began a series of five or six meetings to consider the item.

Mattick shared that the main concerns with data centers were electricity and water consumption, noise and overall environmental concerns. Using a slideshow presentation, Mattick walked the group through the draft ordinance.

The ordinance would provide for a CUP (conditional use permit) for data centers. This means that a company would need to apply to the council for a permit before proceeding with development. A public hearing would be required, which would give the public opportunity to share any concerns.

News Break reports…

The Elk River City Council unanimously approved a one-year moratorium on new data center development Aug. 3, giving the city time to study the rapidly growing industry and develop regulations before considering future proposals.

The action came after the applicant seeking to develop a data center in Elk River formally withdrew its requests for a zoning ordinance amendment and a conditional use permit.

The community was engaged…

The vote came after weeks of packed public hearings, emotional testimony and intense community debate over a proposal that drew widespread opposition from residents concerned about noise, environmental impacts, energy use and the long-term effects of locating a large-scale data center in Elk River.

What does it mean?

“The moratorium does two things,” Carlton told the council. “First, it prohibits all data center development applications, including land use applications, rezoning requests and similar proposals. In other words, all data center development is prohibited during the moratorium.”

He said the second purpose is to direct staff to begin studying what a data center ordinance should include.

The Isanti-Chisago County Star reports…

The city of Cambridge is officially placing a one-year moratorium on the construction of data centers within the city limits.

The council had previously instructed staff to do some initial research into data centers in order to determine if an official moratorium is needed. During an official moratorium, more extensive research will be performed leading up to crafting appropriate ordinances and city codes on the subject. …

estover said staff looked closely at three proposed data centers in Minnesota: at Pine Island, Monticello, and Hermantown. Through that research, staff came to the conclusion that if a hyperscale data center were to be constructed here, most or all of the land would have to be annexed into the city limits. This also means city utilities would need to be extended.

She did note there may be some perceived benefits to a city such as tax base growth, stabilization, and employment opportunities both during construction and once the data center is operational. She added that what would need to be researched very closely is whether those benefits outweigh the negatives that have frequently been voiced across the country. …

About a month ago, ICTV reported on Facebook…

“No data center has been proposed in Itasca County, but the issue has become a contentious one in other communities, including Hermantown.” Cory Smith, the current Itasca County Commissioner for District 1 running for reelection, shares where he’d draw the line if the question ever comes here. Watch the full candidate forum with all three District 1 candidates at watchictv.org.

Today, the Grand Rapids Herlan Review publishes a summary of recent (July 7, 2026) proceedings of the Itasca County Board of Commissioners…

Commissioner Johnson reported on attending Coffee with Commissioners, a MN Data Centers meeting and also visited a data center in Duluth.

It’s not a lot of information but enough to see that leaders in Itasca County are thinking about data centers. For folks outside of Itasca County, these are some of the things to look at to get early signs that data centers are a topic of conversation in your community. Look to local news (even on social media) and notes from local public meetings. Many meetings are livestreamed and archived if you have the time to look.

Pine County News reports…

Pine County will hold a public hearing on Aug. 18 after adopting an interim ordinance authorizing a six-month moratorium on data center developments earlier in July.

County Administrator Kelly Schroeder explained that she verified with county attorney Reese Frederickson that “procedurally there likely should have been a public hearing” prior to the board’s vote on July 7.

After hearing public input at the hearing, the board would reaffirm the ordinance establishing the moratorium.

“We don’t want any issues moving forward with the data center moratorium,” Schroeder said.

The approved measure also directs the county’s Zoning Board to conduct a study of data center regulations and make recommendations.

The boards met for an informational session about data centers at a June 30 Committee of the Whole meeting, after which the moratorium was brought back to the agenda.

Interesting to see decisions at the county-level and to see how quickly decisions about data centers are evolving…

County administrator Kelly Schroeder explained that the moratorium covers all Pine County townships and cities that have opted into county zoning.

Schroeder added that the board could extend the measure if the Zoning Board needs more than six months for the study.

The board had previously considered a moratorium on April 7, but a motion made by commissioner Matt Ludwig to adopt the interim ordinance failed due to a lack of a second.

The Twin Cities Pioneer Press reports…

The Hastings City Council on Monday night moved forward a potential pause on any data center development, joining a growing number of cities across the state considering such a measure.

The ordinance calls for a moratorium on any data center projects for one year, allowing Hastings city staff to study the impact of these facilities, while also considering how to better define such facilities within city code.

The city council on Monday approved the first reading of the proposed moratorium, and will consider final adoption at its Aug. 17 meeting, when they will also solicit comments from the community with a public hearing.

KEYC reports...

The North Mankato City Council held a public hearing on August 3, 2026, regarding a moratorium and study on data centers within city limits.

The meeting was well attended…

Council chambers were full of residents and of around 15 who spoke, only one opposed the motion. The rest were in favor, but also asked the council to reconsider the language as they felt it was too broad.

They will vote in two weeks…

The council decided to table the vote on the ordinance for two weeks to consider public input and ensure correct language in the moratorium. Council members agreed, “We want to get it right”.

I wrote about the proposed data center locating to the former Star Tribune earlier. FOX9 has followed up with notes on varying options of location stakeholders on the project…

• What they’re saying:
  “We have to get things right here,” Rainville said.

  Rainville believes the data center, and other future developments like it, can help shift some of the property tax burden away from homeowners, renters and small business owners. “They’re here already, and they’re part of our economy, which will lower the tax base. For every renter and homeowner and small business owner in this city, which are getting crushed right now,” said Rainville.

• The Downtown Council’s perspectiveLocal perspective:Adam Duininck, CEO of the Minneapolis Downtown Council, sees the data center as a potential solution to downtown’s high vacancy rate.”How long are we willing to let 30% vacancy just hold? If we take a pass on these investments, they’re going to go to a different downtown,” said Duininck.

• Community concerns and city council actionThe other side:Some city council members and neighbors are worried about the environmental impact, and whether a data center is the best use for the site.”Is this the best use of land, a data center, or should there be more activation for community?” said Aurin Chowdhury, Council Member for the southeast side of the city.