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Judge stops Google's 500-acre Minnesota data center as lawsuit targets massive power demand

The delay could prove costly.

A glass building with a Google logo at the top.

Photo Credit: iStock

A massive proposed Google data center in Minnesota is on hold before construction even gets underway.

As The Minnesota Star Tribune reported, a judge paused work on the planned nearly 500-acre facility near Pine Island, drawing fresh scrutiny as critics argue it still has not received a full enough environmental review.

What's happening?

Goodhue County District Judge Patrick Biren issued the temporary restraining order late Friday, halting work on Project Skyway, a data center planned on nearly 500 acres about 18 miles north of Rochester, the Star Tribune noted.

The order came after the Minnesota Center for Environmental Advocacy (MCEA) sued, arguing Pine Island used a streamlined environmental review process that did not fully account for the project's potential effects.

"We need to know more about what's happened behind the scenes, because this environmental review was so vague," Joy Anderson, lead attorney for the MCEA, told the Star Tribune.

They further claim the site was described as a future technology center, even though city officials and developer Ryan Cos. knew Google would be using it.

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Biren wrote that the challenge "would be moot if construction begins" to justify the pause, according to the Star Tribune. He added that the city and Ryan Cos. still had not provided some project information the group had sought via email.

The delay could prove costly. Ryan Cos. said in court that postponing the project, which was scheduled to begin construction in July, could cost as much as $5 million while the lawsuit continues, the Star Tribune reported.

Why does it matter?

The biggest flashpoint is power demand. The data center could require as much as 2,700 megawatts of electricity. The paper noted Pine Island officials say the project would not raise local utility bills.

Artificial Intelligence can bring benefits, including helping utilities better manage power systems and integrate more renewable energy. But the infrastructure behind it can also come with tradeoffs, including heavy energy use, large water needs for cooling, security concerns, and the risk that communities could end up bearing added strain on local resources.

The case reflects a broader tension playing out across the country of how to balance economic development and fast-growing digital infrastructure with transparency, environmental oversight, and community trust.

What's being done?

The restraining order preserves the status quo while the lawsuit proceeds and the requested project records are reviewed. The pause gives opponents time to press for a more thorough environmental analysis before construction can move forward.

Google and the project's backers point to proposed mitigation measures, according to the Star Tribune. The company said it would support major additions to Minnesota's clean energy system through Xcel Energy, including 1,400 megawatts of wind power and another 200 megawatts of solar, per the paper. 

City leaders and developers say the project would exceed local green-space requirements and generate tens of millions of dollars in revenue for the area. However, a project of this scale is certainly worth a second look, and the MCEA wants to lock in Google's commitments.

"This is going to be massive," Anderson told the Star Tribune. "It's really critical for us to know what is going to happen when you build a 2,700-megawatt facility."

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