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Eagan facing lawsuit over data center moratorium
The City of Eagan is facing a lawsuit over its data center moratorium. FOX 9's Mike Manzoni has more.
EAGAN, Minn. (FOX 9) - A legal battle is taking shape in Eagan after the city’s decision to pause new data center development sparked a lawsuit and raised questions about local authorities over electricity regulation.
Eagan’s moratorium and the lawsuit from a data center owner
What we know:
In February, Eagan became the first city in Minnesota to pass a moratorium on data centers, giving itself a year to study the potential impacts of these facilities.
Eagan Capital, a data center owner, is now suing the city, arguing that Eagan does not have the authority to regulate electricity. The company points out that the moratorium makes exceptions for data centers that use less electricity.
According to the lawsuit, there are at least four data centers in Eagan, some of which date to the 1980s.
The data center owner is seeking $50,000 in damages from the city.
The other side:
The city did not immediately respond to a request for comment.
Big picture view:
Several other Minnesota communities have also enacted temporary bans on data centers. After Eagan’s move, cities like Minneapolis and Carver, as well as Wright County and Inver Grove Heights, put similar moratoriums in place. In Inver Grove Heights, a developer has threatened to sue the city over its temporary ban.
Why cities are turning to moratoriums
What they're saying:
"There is no statewide permitting system or analysis that needs to happen before these data centers can be built. Cities are left having to take matters into their own hands and say, 'Okay, we need a pause before we're going to allow this enormous industry into our city....'" explained Leigh Currie, chief impact officer with the Minnesota Center for Environmental Advocacy, a group that has sued over data centers but has no ties to the Eagan lawsuit.
"Cities have already still some measure of control in terms of reviewing proposals and determining if it's the right fit..." she said, pointing out other tools cities have in the absence of blanket moratoriums.
What's next:
A hearing in the case is set for Aug. 12.