A data center owner is suing the city of Eagan after it adopted a one-year moratorium on new or expanded data centers in February.
The complaint was filed on behalf of Eagan Capital on June 15 and alleged the city lacks the authority to enact a temporary suspension. Eagan Capital is asking for $50,000 in damages.
Eagan was the first city in the state to put a hard pause on data centers. The city already has two data centers, but the moratorium is focused on development projects that would use more than 20 megawatts of electricity within 500 feet of homes.
Eagan Capital attorneys argue the city doesn’t have the authority to regulate electricity.
“The Minnesota Public Utilities Commission has exclusive authority to regulate electricity demand in Minnesota,” the complaint read.
The Public Utilities Commission sets the rates and terms of service for eight major investor-owned electric members, which include Xcel Energy, Minnesota Power, Otter Tail Power and Dakota Electric Association, according to its website.
In a statement to MPR, the City of Eagan said it denied an Eagan Capital Interim Use Permit after staff identified temporary trailer-mounted chiller units had been installed and placed into operation without the required permits.
“In May, the City Council denied the Interim Use Permit because the proposed use was not lawful under the property’s current zoning,” the city said. “The City is confident in its position and intends to vigorously defend its moratorium through the legal process.”
There are currently 78 data centers in Minnesota. Tech companies are eyeing Minnesota for data centers because of its relatively cool climate and available land, water and electricity.