BE will soon have three data centers
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BLUE EARTH-- While some cities, like Mankato, are putting moratoriums on having data centers in their area, the city of Blue Earth seems to be embracing them.
Blue Earth currently has two data centers operating, and next year will be adding a third one, according to Blue Earth Light and Water manager Tim Stoner.
While most residents are well aware of the first one, which is just off Highway 169 next door to Cabin Coffee, they are surprised there is a second one.
That one is located in the West Industrial Park, and is just north of the Blue Earth Light and Water water treatment plant, and just east of Winnebago Manufacturing. It is hard to see from any street and is low profile, with its building units being just one story tall.
Next year, in 2027, a new data center will be built on property that is west of the West Industrial Park, across the road from Winnebago Manufacturing.
That is on 46 acres that BELW now owns and it will be the site of two companies, Talus Ag and the new data center.
"Yes, there are two data centers in operation now and another will be coming here," Stoner told a group of citizens last Tuesday. "We are in a highly desired area for them to locate."
The reason is not just the location, but because of available of low cost electricity.
Stoner says the BELW rates are low compared to other areas in the state and country. But the new data centers are not getting cheaper rates than what other users get.
"They pay market rate to Blue Earth Light and Water," he said.
It all started about three years ago, Stoner relates, when the data center owners showed an interest in locating in Blue Earth.
"We have been working hard on how to protect the community and still have these new businesses locate here," Stoner said. "We studied their sound generation, use of water and locations. We also looked at the level of return."
By that Stoner says that BELW has had to create some infrastructure to provide electricity to these new customers, but the benefit is that they will be a large customer of electricity and that will be a big boost locally.
He said an average summer day in the past needed 11 mega watts of electricity. Now electrical power consumption is 30 mega watts per day year round. In the near future that will jump to 140 mega watts.
"Blue Earth once had 5,200 residents and now has 3,100 now," Stoner says. "But those 3,100 need all the services the town provides, like water and electricity."
Having the data centers will be a boost to local residents, he adds, in that their electrical rates will not have to be raised for the foreseeable future despite the increase in infrastructure.
There are some other benefits, Stoner told the group.
"The new data center will be paying property tax that will be significant," Stoner says. "And the city gets a city sales tax on the sale of electricity to the data centers."
He said that could mean as much as $1.27 million in extra income to the city starting after next year.
Stoner addressed some of the concerns that people have with data centers. Those include excessive noise, water use and the possibility they just close up and leave.
"We have tried to have them limit noise, which they are trying to do, and they don't use water for cooling," he explained. "And the concern with them leaving will not impact us here, and we feel are prepared for that but don't anticipate it happening."
Stoner says that BELW has done a lot of work to mitigate the impact of having data centers here. He gave credit to the five-person board of BELW, all local residents, for looking at the issues and making the right decisions.
"It is a case of local governance," he said. "Why would we not want local control over these decisions."
City administrator Dawn Collins added that the council welcomes new businesses to locate here, including data centers.
"As long as they meet all building ordinances and the zoning code we are happy to have new businesses locate here," Collins said.