By Emma Nelson
Moratorium on data center development
The Inver Grove Heights City Council approved a one-year moratorium that pauses construction or expansion of data centers within the city. The moratorium passed in a close 3-2 vote on June 26, 2026, and affects proposals including a planned 54,000-square-foot data center on Carmen Avenue. Councilmembers Brenda Dietrich and Murphy voted against the measure. The site plan for the Carmen Avenue project was tabled for future consideration. Residents expressed strong concerns about transparency and timing during council meetings.
Housing and land use changes underway
Housing development in Inver Grove Heights continues at pace. Several multifamily projects are underway including the Peltier Reserve Apartments development, plus upcoming plans for Archer Trail Townhomes, Kingston Cove, Hillcrest Pointe Phase 2, and Nord 61. A new project at 6050 Cahill Avenue aims to deliver 220 affordable units—140 designated for workforce residents and 80 for seniors—with amenities like community lounges, fitness areas, outdoor gardens, and walking trails. These developments reflect the city’s efforts to address housing inventory in response to ongoing demand.
Infrastructure and planning for growth
To support anticipated growth and connect key areas, the city and Dakota County are advancing several large‐scale infrastructure projects:
- 70th Street (County Road 26) Reconstruction: Resurfacing and reconstruction between Allen Bay and Highway 52; segments of this corridor will be reduced from five to three lanes. New roundabouts are planned at Angus Avenue, Babcock Trail, and at Highway 52. Storm sewers and walking trails are part of the design. Construction is expected to begin in 2027.
- 117th Street (County Road 32) Reconstruction & Modernization: A partnership between the city and county to upgrade a section of 117th Street so it meets safety and capacity requirements—including enhanced pedestrian access and better railroad crossings. The plan also includes a separated multiuse trail.
- Northwest Expansion Area AUAR Update (2025): The city completed a new assessment of its Northwest Expansion Area, which addresses land use, transportation, stormwater, and sanitary sewer systems. The AUAR guides mitigation strategies and growth direction consistent with the comprehensive plan.
- 65th Street Area Plan: This study area north of 70th Street and east of Highway 3/South Robert Trail is being planned for potential redevelopment. City leaders are weighing land‐use scenarios, infrastructure needs, and resident feedback to inform long‐term planning.
Balancing growth and community concerns
These changes highlight a balancing act between accommodating regional growth and addressing local quality-of-life issues. Developers and city leaders are introducing more housing types, aiming for affordability and walkability. But proposals like the data center moratorium show that residents are pushing back when they feel developments could impact environmental health, traffic, or transparency.
As these projects move forward, community members are encouraged to stay involved—through open houses, public comment periods, and council meeting agendas. The city’s decisions now will shape Inver Grove Heights for years to come.