Data Center Discussion

Recently in the media, data centers have been a topic of discussion. Common concerns of the larger data centers include water and electricity usage, noise pollution and proximity to residential land uses and schools. The most recent case was a proposed ordnance amendment and conditional use permit (CUP) request for a data center located in Elk River. Ultimately, the Elk River City Council denied the request and have placed a one-year moratorium on data centers to allow staff to research the concerns around data centers.

The current Ramsey zoning code allows data centers to be located within the I-1 and I-2 zoning districts as a permitted use with no specific performance standards. The attached map shows the industrial zoning districts and the vacant parcels that could potentially be developed. Parcel availability is limited. However, there is still an opportunity for a data center to be located within the City of Ramsey. Most likely it would be a smaller-sized data center because of the lack of large developable industrial acreage in Ramsey. 

Types of Data Centers 

There are three (3) types of data centers: edge data center, cloud computing center, and AI data center. All data centers require large amounts of energy and specialized cooling systems, but AI data centers are larger, use more resources, and incorporate specialized equipment. 

Edge Data Center: Typically it is a colocation center, meaning it enables businesses to rent out space for their own hardware. Instead of using their own on-premise space for servers, networking devices, and other computing equipment, they can rent out space in a data center. The end user is typically located close by the facility. Edge data centers generally require less power, less transmission infrastructure and have a smaller footprint. 

Cloud Computing Center: Cloud computing facilities don't rely on specialized computer chips, they share space with multiple tenants, and act as a digital warehouse for data. These facilities host, compute, storage, and networking resources for large enterprises and consumers worldwide. They are operated by large operations such as Amazon, Microsoft, Google and other companies that require the storage of large amounts of data.

AI Data Center: AI data centers are built for a single purpose, use specialized computer chips to process massive amounts of data, are generally the largest of the data centers and use more resources. 

There are many components to regulating data centers that staff will continue to research and bring the information to the City Council for discussion.

Not applicable

If the City Council directs staff to amend the code to allow data centers as a CUP with specific performance standards, the process may take between 4 to 6 months. This amount of time will be needed for staff to become well-educated on data centers, present information at future work sessions, and work with the City Attorney to develop an ordinance that meets the needs of the City of Ramsey.

Not applicable

Staff recommends City Council discuss data centers and consider the following:

1. Leave data center as a permitted use in the I-1 and I-2 Industrial Districts (no city code changes)
2. Amend City Council to permit data centers as a CUP with specific design and performance standards
3. Amend the City code to prohibit data centers as a use in all zoning districts

Provide staff with direction in terms of amending city code language regarding data centers.