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EDA debates pursuing small data‑center projects; water and power needs top concerns
Summary
Kasson City officials discussed small‑scale data‑center prospects, citing potential tax and load benefits but warning about water demands, backup generation emissions and siting. Board directed staff to prepare a site‑selection map for future consideration.
Members of the Kasson City Economic Development Authority spent a substantial portion of the meeting discussing whether the city should pursue smaller data‑center projects (roughly 10–15 megawatts, sited on two‑to‑three‑acre parcels) and what preconditions would be needed before actively soliciting one.
Board members and staff said data centers can provide steady electric load, jobs and tax base, and that Kasson’s municipal utility could be attractive to prospective operators. But participants emphasized tradeoffs: water infrastructure and competing demand for residential wells, noise from some air‑cooling technologies, and the environmental effects of backup diesel generators.
“Water is the biggest thing I’ve always been concerned about,” one board member said, noting that while some modern designs use closed‑loop coolants and much less water than older evaporative systems, projects that require new wells or large water draws could detract from residential or school supplies. Examples from nearby projects (Pine Island, Cannon Falls, Rosemount) were used to show different outcomes depending on site conditions and pre‑existing water permits.
Speakers also raised power‑supply questions. Staff noted the council had approved battery storage and a small solar project and that Excel Energy allowed the city to begin a facility study to evaluate whether a municipal substation would be needed to support a data center. Participants proposed that staff prepare a development map and identify shovel‑ready parcel options and utility capacity as next steps.
The board did not take formal action to pursue or solicit a data center at the meeting; members asked staff to gather site information and produce a map for further discussion in the new year.
