PINE ISLAND —A data center settlement in southern Minnesota could pave the way for greater environmental oversight in projects across the state.
On Wednesday, Oct. 28, the Minnesota Center for Environmental Advocacy announced a settlement with Google in a lawsuit over a proposed data center in the southeastern city of Pine Island.
As part of the settlement, Google and its developers must earn state approval on an environmental review before moving forward with construction.
According to MCEA CEO Kathryn Hoffman, this is the first time a Minnesota hyperscale data center project will be reviewed by a state agency.
"The data centers previously have all gone through these localized processes run by cities, and the reality is that AI data centers are big, complex projects," Hoffman said. "They have regional and statewide implications, so it is really important that we get our state agencies involved."
Under the agreement, Google and its developers will go through the state’s environmental assessment worksheet process with the Minnesota Pollution Control Agency.
No construction can be done on the project until the agency and the city approve the plan.
The review will include an analysis of the center's impact on the local community and environment, including common concerns like noise and light pollution, water usage and impacts on energy resources. The review must also include a mitigation plan.
The review's findings will be available to all Minnesotans, and a 60-day period will allow for public comment while the state agency considers the proposal. If the agency approves the review,Pine Island city officials can then move ahead with the proposal.
"And so now they have a new environmental study, and they have this mitigation plan proposal," Hoffman said. "They can approve it, they can modify it ... or they can reject it."
Since the lawsuit was settled out of court, the environmental reviews aren't legally enforceable for other data center projects in Minnesota, like the one in Hermantown.
Hoffman said legislative action is likely needed to enforce the reviews statewide.
"Then we'll see it consistent, rather than having to fight for some transparency and public process through individual litigation, which is kind of where we've been forced to go because the data centers are moving so quickly," she said.
Hoffman said she hopes other projects will volunteer to adopt environmental reviews in the meantime, especially considering the Hermantown proposal is also owned by Google.
"Google has agreed to the state level environmental review in Pine Island," she said. "They could certainly do the same in Hermantown."
The MCEA has pending litigation in Hermantown, where tensions remain high amid recent protests at a City Council meeting.
Hoffman expressed disappointment with the city's actions, saying that they've rushed through the process without adequate public input.
"It's too bad," she said, "because I think they had an opportunity to choose transparency and good study over speed, and they did not."
The Hermantown City Council is set to vote on six data center resolutions Friday, Oct. 30.
More information on the upcoming meeting is available via the meeting agenda on the city of Hermantown website.
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