MN lawsuit: Effects from data center projects fly under the radar

The data center construction boom remains on Minnesota's radar with new environmental protections in place, but two cities face lawsuits with claims they are falling short in getting a read on how much future projects would drain natural resources.

The Minnesota Center for Environmental Advocacy recently took legal action against the cities of Lakeville and North Mankato, arguing local leaders did not follow state law under the environmental review process when advancing projects.

Evan Mulholland, staff attorney at the center, said the evaluations left a lot to be desired.

"We don't know how much water they're going to use. For energy, we don't know where the energy's going to come from," Mulholland outlined. "We don't know whether they're going to have contracts for clean energy, for carbon-free energy, or not. All of these things are just missing."

He pointed out the public is also left in the dark about potential noise when equipment is running to store digital data and keep computing machines cool. This spring, state lawmakers extended tax breaks to lure more centers, along with tougher environmental regulations.

Advocates said the safeguards are a good step, but not enough. When reached for comment, North Mankato officials say they led an open review process.

Data centers are known for massive water consumption and pushing energy demand higher. In some cases, developers request to implement backup diesel generators, potentially adding to their carbon footprint.

Mulholland stressed they are not against such facilities, recognizing the need to accommodate digital use in everyday life. He emphasized they are seeking transparency when measuring the environmental impact.

"Some of these cities have signed nondisclosure agreements with the developer, and it's becoming an obstacle for the public to understand what it is being proposed to be built," Mulholland noted.

North Mankato officials said they were looking at different types of development, prompting a broad review without specific details. But the lawsuit contended city staff used the term "data center" in emails when discussing the matter. The plaintiffs are requesting a stop to project activity, including permitting, until a more detailed environmental assessment is done.