A Minnesota appeals court on Monday hit the brakes on plans for a massive hyperscale data‑center campus in Faribault, ruling that the city has to complete a full Environmental Impact Statement before the project can move ahead. The decision effectively pauses plans for roughly 500,000 square feet of server halls on about 84 acres south of 150th Street West and east of Acorn Trail, and it guarantees a longer, closer look at water use, greenhouse‑gas emissions and noise before any heavy equipment rolls in.
Appeals court: Faribault didn’t take a hard look
The Minnesota Court of Appeals found that Faribault’s decision to rely on a shorter Environmental Assessment Worksheet instead of a full EIS was "arbitrary and capricious" and not backed by substantial evidence on greenhouse‑gas emissions, air quality and noise. Judges pointed to unexplained changes in emissions estimates between EAW drafts and said the record did not show the city had taken the required hard, reasoned look at likely impacts. Those findings appear in the Minnesota Court of Appeals opinion.
What was proposed, and where
Archer Datacenters bought the mix of farmland and woodland in late 2024 and started advancing plans for a campus of up to 500,000 square feet with roughly 120 megawatts of power capacity. City and project documents place the property at the southeast corner of 150th Street West and Acorn Trail and show multiple single‑story server buildings plus a substation to feed the large electrical load. That land deal and the basic project outline are described by Archer Datacenters and in industry coverage from DatacenterDynamics.
Local officials and advocates react
City officials and the developer kept their public reactions measured. City spokesman Brad Phenow told the Star Tribune the city "is committed to ensuring all environmental issues are properly addressed," while acknowledging officials had hoped for a different outcome. Archer CEO Jordan Milman said the company "looks forward to continuing our work with the city," even as the project heads back into deeper review. The Minnesota Center for Environmental Advocacy, which brought the appeal, called the ruling a win for residents and for tougher scrutiny of hyperscale projects, according to the Star Tribune’s reporting.
What the ruling requires next
The court’s order means Faribault now has to complete a full EIS, which is a far more detailed study that involves scoping, agency review, draft and final documents and formal public comment periods before key permits can be issued. The Minnesota Center for Environmental Advocacy says the project will stay on hold while that process plays out. The Minnesota Environmental Quality Board provides the framework and timelines the city will have to follow for the EIS.
Part of a wider fight across Minnesota
Faribault’s setback is one of several recent legal and local challenges to large data‑center proposals in Minnesota, including a judge’s temporary hold on a Google‑linked project in Pine Island and ongoing suits or reviews in Hermantown and Monticello. Those cases, along with a push at the Statehouse for clearer rules on big facilities, reflect growing unease about water consumption, grid strain and neighborhood impacts tied to hyperscale computing. Reporting on those related fights and policy debates is available from MPR News.
For nearby residents, the ruling feels like a green light for deeper scrutiny. For the city and the developer, it adds fresh uncertainty about timelines and costs. Faribault officials say they will follow the court’s direction as the EIS unfolds, while advocates see the case as proof that legal challenges can still shape where and how these giant tech facilities get built.
