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Pushback against data center controversies has spread across the nation, and now it’s happening in Inver Grove Heights. Here’s an overview of the current project and the latest updates.
What’s Proposed
- What: An approximately 54,000-square-foot data center. The initial build will be a three megawatt facility with a planned expansion to five megawatts. The developer describes it as “small, low-impact” and “designed to operate quietly.” The proposal is smaller than the typical “hyperscale” data center that can be hundreds of acres in size.
- Where: A 13.9-acre site at 5842 Carmen Ave, the previous Travel Tags that was demolished over the winter. It’s zoned for industrial uses and is next to the South St. Paul airport.
- Who: Florida-based QLevr Data Centers.
Potential Impact
- Power: Expanded power infrastructure to the facility will be paid for by the developer and the ongoing energy usage will be equivalent to about 3,100-4,800 homes, according to the applicant. They note that direct connection means it is separate from the electric grid for the surrounding community.
- Water: The facility will use a closed-loop water system that requires about 70,000 gallons of water initially and recirculates it. For the sake of comparison, the entire city of Inver Grove Heights uses 2.7 million gallons of water per day. Ongoing water usage is minimal, according to the applicant.
- Noise: Backup generators are the main cause of noise and have significant screening, including a 23-foot wall with sound-absorbing panels. The developer claims they can reduce noise to 45-decibels at the property line, just below the 50-decibel limit at night.
Process
Here’s an overview of the process to date:
- Planning Commission review: Planning Commission considered the proposal and held a public hearing on April 7, 2026, approving it on a 6-3 vote. Several members were clearly opposed to the project, but had no legal standing to deny it as the proposal met city code.
- City Council review: Council first reviewed the project on April 27, hearing public comment and ultimately voting unanimously to table the project until May in order to gather more information. Then it got complicated with a proposed moratorium (see below).
- Moratorium: As this data center proposal was working through the process, the City Council proposed a one-year moratorium on data centers, which would include the current proposal. Passing ordinance changes impacting current projects is generally a good way for cities to get sued (sure enough, see below). The Council approved the moratorium on June 26 on a 3-2 vote (Mayor Brenda Dietrich and Council Member John Murphy voted no).
- Lawsuit: As early as April 16 the Qlevr threatened a lawsuit if the project is stopped or a moratorium is passed. They allege a potential $150 million in damages, while the city’s insurance has a $1 million cap (meaning the city would have to pay anything over $1 million). Eagan is likewise facing a lawsuit over their data center moratorium.
- Environmental review: Local resident Carrie Lundberg organized a petition to require an environmental assessment worksheet (EAW). The 712 signatures collected far surpass the 100 required. The purpose of an EAW is to determine if the project will have significant environmental effects and therefore need an environmental impact statement (EIS), which is a whole other round of environmental review that still doesn’t approve or deny a project but gives more context and data. So at this point, the project site plan is delayed while the EAW plays out. On Friday, June 26, Council unanimously approved continuing the site plan to a future date.
What’s next: The city will go through the EAW process and start their moratorium to study data centers, while waiting to see if legal threats become legal action.
Pushback
The data center proposal has drawn strong community response. Meetings have been packed and contentious. Pushback has focused on the potential negative environmental impact of a data center, including water and power usage and noise.
The Monday, June 22 Council meeting ended abruptly and was rescheduled for Friday morning, purportedly because the Council had new information to consider. That prompted shouts of complaint from residents. Just a few minutes into the Friday, June 26 meeting, Mayor Dietrich called a five-minute recess in response to crowd reaction to her rules limiting clapping, cheering, booing, etc. During the public comment period, she called another five-minute recess when the audience clapped after the second comment.
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