Proposed Google data center in Pine Island to undergo new environmental review
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A controversial proposed Google data center in Pine Island will be the first in Minnesota to undergo a new, more-robust environmental review as part of a lawsuit settlement reached this week.
The data center, known as Project Skyway, has been on hold for months after the Minnesota Center for Environmental Advocacy (MCEA) filed a lawsuit, arguing that the original environmental review of the proposal wasn’t thorough enough. The nonprofit said that Google failed to disclose basic information about the project, including its size, scale and projected water and energy use.
The settlement, approved in a unanimous vote by the Pine Island City Council on Wednesday, puts an end to the litigation involving the city, MCEA and Ryan Companies, the project developer. It mandates a new environmental assessment under the supervision of the Minnesota Pollution Control Agency.
MCEA CEO Kathryn Hoffman called it a win.
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“This is the first time in the state of Minnesota that a state agency will conduct an environmental review for a data center,” Hoffman told MPR News after the city council meeting. “We have not seen that before. They’ve all happened at the city level, and we think it’s really important that the state be involved in these environmental review processes because these are complex projects.”
“These are regional and statewide issues like water and energy use. Every other industry needs to go through these environmental review processes. There’s some expertise and institutional knowledge at the state level that we think will be very valuable here.”
Under the agreement, Google and Ryan Companies will be required to work with the Minnesota Pollution Control Agency to present a detailed analysis of the proposed project’s water and energy usage, as well as potential noise and light pollution.
Ryan Companies and Google have agreed to develop a plan to mitigate those effects, which they will present to state regulators and the city, followed by a public comment period involving state and local officials. Mailers advertising the comment period will be sent to the entire 55963 zip code.
The project cannot be constructed until both the city and the state agency approve the mitigation plan.
Peter Fitzgerald, senior vice president with Ryan Companies, told MPR News that the company is pleased the lawsuit has been settled.
“We found some common ground,” Fitzgerald said. “All parties are looking for what’s in the best interests of Minnesota and what’s in the best interests of the community. We’re happy that the previous approvals made by the city of Pine Island remain in place, and we definitely look forward to working with the MPCA on their review. It’s a clear path forward.”
Google’s representative Halston Sleets declined a request for comment from MPR News.
The data center has long been controversial in town, with critics saying the process has been opaque. Pine Island residents said they didn’t learn that Google had developed the proposal until after the city council approved the original study.
It’s also received heat from southern Minnesota political candidates like DFLer Jake Johnson, who is running to oust Republican U.S. Rep. Brad Finstad, as well as local residents and environmentalists. The fierce community opposition has even spurred some political newcomers to run for local office in Pine Island, as well as in other communities across Minnesota where data centers have been proposed.
Earlier this month, the Minnesota Attorney General’s office raised concerns that Google’s agreement with Xcel Energy to power the hyperscale data center in Pine Island could leave Xcel’s other customers on the hook for millions and possibly more than a billion dollars in extra costs.
Aubree Derksen, representative for the grassroots coalition Stop the Pine Island Data Center, said she hopes the new environmental review will hold Google and Ryan Companies accountable.
Despite warnings of approaching severe storms, about 20 group members showed up Wednesday night and waited an hour and a half outside the city council meeting before being admitted inside to hear the settlement announcement.
“I want it to be made clear that residents had a seat at the table with this,” Derksen said. “If you look at the court record, you’re not going to see us officially represented, but that does not mean we weren’t there. We were, and we had a significant role in shaping the outcome of this process. This is not Google and Ryan suddenly coming up with this on their own. No, this is very much resident-informed.”
While the settlement doesn’t set legal precedent, MCEA’s Hoffman said she hopes that more data center proposals in the future will see the value of working with the state on a more-thorough environmental review — and she hopes it will bolster legislative efforts to standardize the process.
“If we really want a standardized system in which all data centers have to go through robust state environmental review, we would like to see the Legislature pass a bill that requires environmental impact statements for all data centers,” Hoffman said, adding that her group will continue advocating for that policy change in the coming session.
