Date
June 15, 2026
Added to tracker
October 7, 2026
Court or forum
Minnesota District Court, Dakota County
State
Minnesota
Property type
Data Center
Amount / scale
$50,000 in damages sought; challenges a one-year moratorium on data centers using more than 20 megawatts within 500 feet of homes
Parties
Plaintiff: Eagan CapitalDefendant: City of Eagan

Eagan Capital sued the City of Eagan, Minnesota, alleging the city lacked authority to enact a one-year moratorium, adopted in February 2026, on new or expanded data centers using more than 20 megawatts of electricity within 500 feet of homes. The complaint, filed June 15, 2026, argues the Minnesota Public Utilities Commission has exclusive authority to regulate electricity demand in the state and seeks $50,000 in damages; the city has said it separately denied the company an interim use permit after unpermitted trailer-mounted chiller units were installed and operated at the site.

Why it matters

The suit is part of a wave of litigation nationally over local moratoria aimed at data centers' outsized electricity and land-use footprint, testing whether cities can regulate data center development directly or whether that authority is preempted by state utility regulators. A ruling curbing municipal moratorium power would materially affect how data center developers site large power-intensive projects near residential areas in jurisdictions without existing zoning frameworks for the use.

A Minnesota data center developer has sued the City of Eagan over a one-year moratorium the city adopted in February 2026 on new or expanded data centers that would draw more than 20 megawatts of electricity within 500 feet of homes, arguing the city lacks the legal authority to impose the pause at all. The lawsuit, filed by Eagan Capital on June 15, 2026 in Dakota County District Court, is part of a broader pattern of Minnesota communities pushing back against data center development through zoning and moratorium tools.

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