Harmony session refines draft definitions ahead of proposed data‑center ordinance

Facilitator Katrina Hurley opened a joint planning session in Harmony on Feb. 4, 2026, to continue work on definitions that will be incorporated into a future data‑center ordinance, emphasizing that the meeting was for drafting language and that no decisions would be made.

The session brought together Mayor Steve Donney; Council Members Jesse Grabau, Kyle Scheevel and Tara Morem; EDA Board Members Stuart Morem, Greg Schieber and Kelsey Bergey; Planning and Zoning Board Members Rod Johnson and Miles Petree; and several residents and staff, including Chris Hahn (CEDA) and Alissa Stelpflug, the city administrator.

Why it matters: The definitions developed at this stage will determine how the city later frames standards on noise, setbacks, water use, emissions and financial protections — issues that shape how data centers operate near residents and how the city enforces compliance.

Key outcomes

- Buffers and screening: The group consolidated “buffer” and “landscape buffer” into a single definition that covers both permanent vegetation and structural elements (for example, fences or walls) and retained “screening” as a distinct definition described as a visually solid barrier to prevent ineffective materials from qualifying as screening.

- Utility and interconnection language: Participants decided to include examples of utility infrastructure (substations, transmission lines, water mains, sewer lines and stormwater systems) but to preserve broad language — “including but not limited to” — to avoid excluding future technologies. The group agreed interconnection terms should be drafted in consultation with MiEnergy for technical accuracy.

- Public utility and energy terms: The group adopted definitions consistent with Minnesota statutory language and Harmony’s municipal electric system wording to limit the ability of a data center to bypass local utility regulation by bringing its own generation. Definitions for energy use, load, megawatt and peak demand were added to the draft even though the city may later decide whether to regulate peak demand.

- Emissions, hazardous materials and environmental review: Members agreed to use Minnesota language for emissions (particulate matter, volatile organic compounds and nitrogen oxides) and adopted state statutory definitions for hazardous materials, wastewater and effluent. Participants flagged concerns about newer cooling chemicals and persistent “forever chemicals” and confirmed environmental review references (EAW, EIS, AUAR) would appear in the draft definitions.

- Cooling systems: To prevent loopholes, the group defined “closed‑loop cooling” as a system that recirculates coolant without continuous discharge and that uses zero water, chosen specifically to avoid systems described as closed loop that nonetheless draw significant groundwater.

- Financial safeguards and incentives: The group agreed to include clawback provisions for future incentives and to require financial assurance for decommissioning or site restoration, permitting either escrow or performance bonds. The escrow definition was revised so the city may hold funds directly rather than requiring a third party.

- Monitoring, reporting and enforcement: Draft definitions were expanded to include development agreements as a vehicle for monitoring and compliance. Reporting was set to require annual operational reports covering water use, energy use and compliance, submitted to the City and any required regulatory agencies. The group adopted the Minneapolis definition of “enforcement action” as a reference point.

- Permit transferability and revocation: Members agreed that permits would require city approval before transfer to another operator and adopted standard definitions for revocation and default applicable to zoning and development agreements.

What was not decided: The session did not include formal votes or motions. Several policy choices — including whether Harmony will regulate peak demand, specific noise limits, setback distances, and precise water‑use caps — were left for subsequent meetings focused on standards and safeguards.

Next steps: Hurley and staff will incorporate the agreed definitions into a draft ordinance for review by the Planning and Zoning Commission and later referral to the City Council. Follow‑up joint sessions were scheduled for Feb. 18, March 4 and March 18 to address technical standards, community benefits and fiscal protections. Several environmental organizations are expected to observe future meetings.

Reporting note: The session record lists 26 definitions to be completed and allocated an estimated four minutes per definition; it also notes a 35‑year state sales‑tax exemption on equipment for data centers that makes PILOT (payment‑in‑lieu‑of‑taxes) agreements an important tool for local revenue. The draft language references Minnesota statutes and the Minnesota Energy Code, and it specifies consultation with MiEnergy for interconnection language.