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Mountain Lake council hears resident concerns about proposed data center
Summary
The council reviewed the previously approved Conditional Use Permit for a planned 12,000 sq ft data center at 2203 3rd Avenue and fielded extensive public testimony about electric rates, backup generation, noise and water/sewer impacts; no action was taken at the July 20 meeting.
The Mountain Lake City Council on July 20 reviewed public concerns about a Conditional Use Permit (CUP) previously approved on Nov. 17, 2025 for a proposed data center up to 12,000 square feet, estimated at about $2.5 million, at 2203 3rd Avenue.
City Administrator Michael Mueller summarized staff findings, saying the facility would purchase electricity at market rates through the regional energy market and that the city’s Municipal Utilities would not enter long-term power contracts or assume energy-pricing risk. Mueller also told the council the facility will be operated as a curtailable load and is not expected to impact the local electrical distribution system.
Residents raised concerns during public testimony about a range of issues, including potential pollution from backup power, noise impacts, and whether the project would increase demand on municipal water or sewer systems. Staff responded that the project will not use diesel or other on-site backup generation and will not connect to the City’s water or sanitary sewer systems. Staff said they visited a comparable data center in Blue Earth and reviewed Minnesota noise standards and measurements that indicate the proposed facility should comply with state noise limits.
The council did not take action on the data center at the July 20 meeting. The meeting opened with a motion to approve the agenda and consent items, which carried 3–0. The council adjourned at 7:25 p.m.
