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Minnesota cities are trying to decode data center impacts
Researchers are building tools for cities to weigh water, power and tax effects as officials prepare for future data center proposals.
On June 10, 2026, Byron City Administrator Al Roder partnered with officials in Stewartville and Lewiston to research data center impacts and define questions for future development decisions.
Development interest across the region, including projects in Pine Island and land agreements approved by Cannon Falls City Council earlier this year, prompted cities to seek proactive, data-driven answers.
Supported by a $200,000 University of Minnesota Extension grant, researchers led by Freshwater research and policy director Carrie Jennings are analyzing the shift from water-cooling to electricity-intensive air-cooling systems.
Stewartville city administrator Bill Schimmel and Lewiston city administrator Ragini Varma are updating comprehensive plans and reviewing zoning policies to provide safeguards while maintaining current economic growth.
Expected for release by August or September, research tools will assist communities statewide in evaluating any large industrial user, helping leaders balance tax benefits with potential community impacts.