City prepares for data center boom amid growing demand

During a recent government meeting, officials discussed the city's response to Requests for Information (RFIs) regarding industrial property, revealing a total of eight RFIs received over the past two years. The latest inquiry pertains to a large property of approximately 130 to 150 acres, which poses challenges due to its size and the nature of manufacturing being sought. While manufacturing is permitted in the business park zoning district, many RFIs indicate a demand for heavier manufacturing, which may not align with the district's intended use for multi-use buildings and light manufacturing.

City staff noted that most inquiries typically seek smaller parcels, ranging from 10 to 50 acres, with a preference for pad-ready sites. This trend has made the larger site less appealing for potential projects, including Project Maxwell. However, city officials view this as an opportunity to gather baseline information and strengthen relationships with development partners, including Connexus and Xcel Energy, whose government relations representatives have recently changed.

In a related discussion, the demand for data centers was highlighted, with officials noting that Minnesota is lagging behind other states in attracting these facilities. The growth of artificial intelligence and technology reliance is expected to drive continued demand for data centers. Officials emphasized the importance of being prepared for such opportunities, citing Meta's recent decision to establish a large data center in Rosemont as a positive example.

Concerns were raised about the availability of electricity for potential data center sites, with current capacity not meeting the demands of larger operations. However, officials expressed optimism that partnerships with energy providers could facilitate the necessary infrastructure development over time. The conversation underscored the city's commitment to attracting high-tech jobs and enhancing property values through strategic planning and collaboration with energy partners.