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Inver Grove Heights Carves Out Data Center From Moratorium to Avert Major Lawsuit

The council exempted QLevr’s proposed project to reduce legal exposure and shift the dispute into the city’s planning review process.

Overview

  • The City Council voted 3-1 on Monday to remove QLevr LLC’s proposed 54,000-square-foot data center from a one-year moratorium so the developer can proceed to formal review.
  • QLevr filed suit after the moratorium took effect, arguing its application complied with existing rules and prompting legal warnings that the city could face at least $20 million in damages if it lost.
  • City officials said the municipal insurance cap is $1 million, meaning any judgment above that amount could fall to local taxpayers and drove the council’s risk-avoidance decision.
  • The project must still clear the major site plan at the Sept. 28 council meeting, then win a development contract and receive building permits before construction can begin.
  • Neighbors remain concerned about noise and utility impacts, and one councilor who voted no pledged a review of zoning and permitting rules to better address future data center proposals.