SE Twin Cities

Data center developments are expanding across the state, with the first local project planned in the area and another proposed near Pine Island covering over 400 acres. Community reactions have been mixed, as some residents see potential benefits while others raise concerns about the speed of approvals and lack of public input.

Minnesota State Rep. Pam Altendorf (R-Red Wing) stated that these projects are moving forward beyond her legislative influence. “These current data center projects are past any legislation or input that I can propose at a state level. Very important decisions are being made, legal contracts are being signed and the fate of these centers being built are all happening at a local township and city government level,” she said.

Altendorf emphasized that decisions regarding the 240-acre facility near Cannon Falls are taking place between local officials and Tract, a land development company that will eventually sell to an unidentified end-user. “To be clear, the city does not know who the final owner of this property will be,” she noted.

Residents have raised questions about possible increases in electricity rates due to high energy demands from data centers. Citing a recent Bloomberg article, Altendorf said, “electricity costs as much as 267% more than it did five years ago in areas near data centers.”

Water usage is another concern. Cannon Falls City Administrator Jon Radermacher assured Altendorf that the city has enough capacity to supply approximately 50 million gallons annually for cooling needs. Some citizens questioned whether chemicals used could affect groundwater or complicate wastewater treatment.

Other topics under discussion include changes in property values, potential tax benefits for the city, and whether jobs created during construction would translate into long-term employment opportunities for locals.

Altendorf also highlighted statewide energy issues following Governor Walz’s signing of a law requiring carbon-free energy by 2040. She warned this mandate could strain reliable power sources as large-scale data centers increase demand on the grid and may contribute to rolling blackouts during peak times.

She encouraged community members to engage with their local elected officials before final decisions are made: “The best advice I can give is to not assume anything, but to ask questions and occupy a seat at the table before all decisions have been made.”

Altendorf concluded by reaffirming her commitment to balance economic growth with environmental and local concerns as discussions about data center construction continue throughout Minnesota.