City Council Okays One-Year Moratorium on Data Centers, Eyes Infrastructure Upgrades

City Council Okays One-Year Moratorium on Data Centers, Eyes Infrastructure Upgrades

By Emma Nelson

Inver Grove Heights residents have seen significant developments from their City Council this summer. Among them: a newly approved moratorium on data center construction and active plans for several infrastructure improvements across the city.

One-Year Pause on Data Center Construction

On June 26, the City Council voted 3-2 to approve a one-year moratorium on planning or expanding data centers, including a proposed 50,000-square-foot facility on Carmen Avenue. The pause will give officials time to study environmental, noise, and traffic impacts raised by neighbors. Previously, some residents gathered more than 700 signatures on a petition for a detailed Environmental Assessment Worksheet related to the project. The city also faces a potential lawsuit from the developer alleging roughly $150 million in damages. Budget, environmental protection, and process transparency have emerged as key issues.

Where Things Stand

  • The moratorium includes actively pending applications, including the proposed data center on Carmen Avenue. Any new applications will also fall under the temporary pause.
  • Councilmembers voting against were concerned about legal exposure, developer relations, and cost to taxpayers.
  • The moratorium’s timeline provides city staff time to study regulatory gaps and possibly update ordinances or require stronger environmental assurances from applicants.

Moving Forward on Roads and Trails

While the data center issue draws attention, several infrastructure projects are progressing toward construction, aimed at improving safety, mobility, and sustainability.

70th Street East Reconstruction

Dakota County and the city are collaborating on a major rebuild of 70th Street East (County Road 26). This includes reconstructing the roadway between Allen Bay and Highway 52, reducing lanes from five to three between Highway 52 and Cahill Avenue, adding a new trail, updating storm sewer systems, and installing roundabouts at Angus Avenue and Babcock Trail. It’s planned for construction in 2027.

Other Projects Underway

  • The Highway 52 bridges over I-494 were redecked, repainted, and upgraded in 2025 to improve structure lifespan, lighting, and drainage.
  • The city’s Area Plan for the Northwest Expansion includes preliminary roadway, sewer, and stormwater infrastructure to support future development.
  • Reconstruction and utility work are happening now along South Street and connected streets in Inver Grove Heights and neighboring South St. Paul, with anticipated substantial completion by October this year.

What Residents Should Know

If you live near Carmen Avenue East or along the corridors for road or trail improvements, here are some ways to stay involved and informed:

  • Attend upcoming council meetings—especially those that include discussions of environmental reviews or zoning changes related to data center proposals.
  • Watch for public notices and reports in the insights section of the City’s website, which publishes project maps, draft plans, and interactive tools.
  • Expect construction delays or traffic shifts during the rebuilds, and follow alerts from Dakota County about trail closures, temporary detours, and construction schedules.

Why It Matters

Both the moratorium and infrastructure strategy reflect a balancing act. Residents are asking questions about quality of life—sound, traffic, environmental impact—while the city aims to manage growth, maintain mobility, and plan for long-term sustainability. What’s clear: Inver Grove Heights is thinking hard about what growth should look like, and how to protect what makes this community livable.