TL;DR
Data centers are not currently a permitted use in any zoning district in Elk River. There is an application before the City to amend the ordinance to allow data centers as a conditional use in industrial zoning districts.
A 58,000 sq. ft. data center conversion is requesting 33 MW of power — a 50–60% load increase on ERMU from a single customer — presumably with a meaningful revenue increase for the utility. Noise study results are expected at the June 23 Planning Commission meeting.
Ordinance Amendment
Case File No. OA 26-02
Michael Margulies is seeking to amend Elk River City Code Section 30-1293(d) to add data centers as a conditional use within the I-1 (Light Industrial) zoning district. Because I-1 and I-2 districts share relevant code provisions, the amendment would also affect all I-2 districts as well.
Data centers are not currently a permitted use in any zoning district in Elk River. The city has two existing data centers, both of which are legal non-conforming uses — meaning they predate the current code structure and are grandfathered, but cannot expand or be replicated under existing law without this amendment.
City staff identified the following categories of standards that could be codified through this process: size limits, maximum energy use, cooling system requirements, noise mitigation, buffering/screening requirements, lighting, and setbacks.
No proposed text for Section 30-1293(d) appears in any of the submitted documents, which means the standards the city will actually codify remain unspecified in the public record as of the May 26 hearing.
Conditional Use Permit
Case File No. CU 26-05
Michael Margulies is also seeking a conditional use permit for 19178 Industrial Blvd NW a 3.23-acre parcel, within a I-1 (Light Industrial) zoning district.
The site contains two connected, one-story concrete block/metal-sided buildings totaling 63,190 sq. ft., built in phases from 1978–1997. The proposal converts ~58,000 sq. ft. to data center use after demolishing approximately 5,000 sq. ft. to reconfigure the loading dock area. The applicant states no other exterior modifications are planned.
The data center plans call for 33 megawatts (MW) of electricity maximum. Elk River Municipal Utility (ERMU) has indicated new feeders will carry 30 MW of that load; an existing feeder handles the remaining 3 MW. Per ERMU’s presentation, this represents a 50–60% increase in total energy usage from this single customer. This would appear to be a meaningful revenue increase for Elk River Municipal Utility.
Infrastructure costs beyond existing underutilized capacity are contractually the developer’s responsibility, paid upfront, protecting the rest of ERMU’s customers from bearing these costs.
Cooling is a closed loop system without ongoing water consumption. Water and glycol will be mixed to prevent the water from freezing.
The applicant’s narrative states no residential properties are within 500 feet of any property boundary. The city’s presentation states the closest residence is approximately 930 feet away. By observation, Meadowvale Elementary School appears to be at a similar distance (less than 1,000 feet).
The plan boasts ~100 construction jobs over 6–9 months. Operation calls for 40 FTEs across three 8-hour shifts, with a maximum of 10 employees on-site at any time.
The applicant has decided to conduct a noise study, the results of which are expected at the June 23 Planning Commission meeting.
The assertion is made that there will be no traffic impact.