Waite Park Weighs Data Center Moratorium, New Assessment Policy

(KNSI) — The Waite Park City Council is taking up two critical policy questions at a Monday afternoon work session that could shape how the city grows, and how residents pay for that growth.

First, council members will discuss placing a temporary moratorium on data center development. The move comes after staff discovered the city has no ordinances governing data centers or their potential demands on city resources. The interim ordinance would give staff time to research and draft appropriate regulations before any development proposal is put forward.

Data centers have become an increasingly attractive target for tech industry expansion across the Midwest, drawing scrutiny from communities concerned about their heavy demands on electricity, water, and infrastructure.

For example, Google is moving forward with plans for a 1.8 million square foot data center campus in Hermantown, near Duluth. The City Council gave it the go-ahead last fall. Developers promised a huge tax revenue boost, hundreds of construction jobs, and significant investment, but the project faces strong opposition from residents. A lawsuit was filed, which led to the restart of the environmental review process. Residents argue it will create increased noise, light pollution, higher utility rates, and use huge amounts of water from Lake Superior, which is the source of the city’s drinking water.

On the infrastructure front, staff is pushing for a formal assessment policy, which is something the city currently lacks. Without consistent guidelines, how residents are charged for street, utility, storm sewer, and sidewalk improvements can vary from project to project. The city says a formal policy would bring consistency and clear criteria to future projects, including how costs are repaid to the city over time. Recent discussions around 2026 improvement projects appear to have prompted the push.

The council will also hear updates on proposed state legislation that could expand multi-family housing in residential and commercial zones.

The work session will be held at the District 742 Administrative Building at 1201 2nd Street South in Waite Park.

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