The meeting’s primary focus was the proposed ordinance that seeks to classify data centers under a conditional use permit (CUP), affording the city enhanced oversight. This designation would enable the city to evaluate each project based on operational specifics such as water and electricity usage, rather than allowing data centers as a blanket permitted use. The ordinance, still in its formative stages, was informed by comparisons with other municipalities and insights from industry experts. An important aspect of the discussion was the annexation process with Randolph Township, a critical element in determining future land use for the proposed data center sites currently situated within township boundaries.

Council members engaged in discussing the draft ordinance, posing questions and raising concerns. The dialogue touched upon whether the CUP process adequately protects the city’s interests or if a specific zoning category for data centers might be warranted. Despite suggestions to establish a distinct zoning classification, city staff expressed confidence in the CUP process to manage data center developments effectively. Concerns were voiced regarding the clarity of provisions related to infrastructure requirements and environmental impacts, such as noise, light, air, and water pollution. The rapid evolution of data center technologies was acknowledged, with attendees noting the potential for current regulations to become outdated.

A particular point of interest was the city’s capacity to regulate the types of energy sources employed by data centers. The draft ordinance allows for the use of diesel and natural gas generators, while also considering future technologies like battery and solar energy. This flexibility aims to accommodate advancements in energy technologies while maintaining an adaptable regulatory framework. Discussions also covered the definition of “enclosed energy storage,” which refers to structures housing large-scale battery storage facilities essential for data centers, with a focus on whether these facilities should be internal or external.

The council explored the implications of energy-intensive operations, specifically addressing the high energy consumption associated with certain types of data centers, such as those involved in cryptocurrency mining. There was consensus around potentially prohibiting such energy-heavy data centers, emphasizing the need to prevent undue strain on the city’s resources. The city’s current inability to regulate power usage, due to the absence of a municipal electric utility, highlighted the role of Dakota Electric, the local power provider, in assessing and managing power needs.

Another aspect of the meeting was the emphasis on public safety and infrastructure preparedness. Discussions underscored the importance of integrating fire prevention and suppression systems in data center developments, alongside ensuring sufficient water capacity for emergencies. Attention was drawn to the need for the local fire department to assess its capability to respond to potential incidents at data centers, signaling that these factors would be considered in the planning stages of any development.

The council also addressed procedural matters, focusing on the structure of the conditional use permit process, compliance, and enforcement mechanisms. Questions were raised regarding how violations of CUPs are managed, with an acknowledgment of the challenges posed by limited enforcement resources. Although existing city ordinances provide frameworks to ensure compliance, the capacity to monitor and enforce regulations effectively remains a concern.