Lakeville Just Wrote New Data Center Rules — Before a Single One Showed Up
TLDR
- Lakeville's Planning Commission backed new data center rules on July 23, 2026.
- Big multi-building "campus" data centers would be banned.
- Smaller ones need a special permit, a public hearing, and studies on water, energy, and noise.
- They'd only be allowed in one industrial zone south of County Road 70, at least 500 feet from homes and the city's edge.
Here's something you don't see every day. A city writing rules for a business that hasn't even shown up yet. That's exactly what Lakeville did on July 23. The Planning Commission voted to recommend brand-new rules for data centers. And they're strict. Let's walk through what changed and why it matters for Lakeville.
Why Now?
Data centers are everywhere in the news. These are the giant buildings full of computers that power the internet, AI, and cloud storage. They use a ton of power and water. Right now, Lakeville's rules would let one get built with very little review. City planner Daniel Lick told the board it's smarter to set rules early. "It's always best from a regulatory standpoint if you anticipate the use rather than react to one," he said. There's no data center application in Lakeville right now. The city just wants to be ready.
The Big Change: A Public Hearing and a Special Permit
Today, a data center is a "permitted use." That means if it checks the boxes, the city pretty much has to approve it. The new rules turn it into a "conditional use." That's a fancy term for one thing: you have to come before the Planning Commission, hold a public hearing, and prove your project won't hurt the city. It gives Lakeville — and you — a real chance to weigh in.
Campuses? Not Allowed.
Here's the clever part. The new rules split data centers into two types. A "data center" is one building. A "data center campus" is a bunch of them together — the huge hyperscale kind. The rules allow the single-building type by special permit. But the campus type isn't listed as allowed anywhere in the city. And in zoning, if it's not listed, it's banned. So Lakeville just quietly closed the door on the biggest projects.
Where They Can Go
Data centers used to be allowed in three zones. Now they'd only be allowed in one — the I1 industrial district south of County Road 70, west of I-35. That's the same area seeing big warehouse growth. On top of that, any data center would have to sit at least 500 feet back from County Road 70, from homes, and even from the city's southern border with the next township. The city didn't want noise or lights spilling over onto neighbors.
Water, Noise, and Cleanup
Any data center would have to hand in three studies: one on energy, one on water, and one on noise. Water is a big deal here. The buildings use it for cooling, and the region pulls drinking water from the same underground source. Noise is another. The rules limit backup generators to power outages only and add tougher limits on the low humming sound fans make. And if a data center ever shuts down? The owner has to file a cleanup plan and post money up front so taxpayers never pay to tear it down.
One Resident Wants More
Charles Banks spoke on behalf of the Lakeville Friends of the Environment and a new group, the Lakeville Green Coalition. He thanked the city and called the new rules a strong start. But he pushed for hard numbers — actual limits on water and power, not just studies. He pointed to Meta's data center in Rosemount and proposed ones in Farmington as reasons to worry about the shared water supply. Then he left the room with a line worth repeating: "Do our children need water or data to live?"
Commissioner Travis liked the new testing rules and suggested adding one more — an economic impact statement showing jobs and pay. Lick said that's more of an economic development question than a zoning one, but noted it's good info to have.
The Bottom Line
This isn't final. The Planning Commission only recommends. The City Council makes the call on August 3. And even the board admits this is just a first step — Lick said the rules will get revisited as the technology and the risks become clearer. If data centers matter to you, show up on August 3 or send the city a note. Want the bigger picture on how Lakeville is handling its rapid growth? We've been tracking it all year.
FAQ
Is a data center being built in Lakeville right now? No. There are zero applications. These rules are just getting the city ready in case one comes.
Could a giant hyperscale data center still get built here? Not under these rules. The multi-building "campus" type isn't allowed anywhere in the city, which effectively bans it.
Why is everyone so worried about water? Data centers use lots of water to stay cool. Dakota County's drinking water comes from an underground aquifer that's already under pressure from growth.
Does the city control the electricity part? Mostly no. Power is regulated by the state. Lakeville can only review a slice of it through the permit process.
When is the final vote? The City Council votes August 3, 2026. The Planning Commission's July 23 vote was just a recommendation.
