Pine Island city council advances data center project despite lawsuit

CONTINUING COVERAGE: Lawsuit against Pine Island data center seeks to pause project
Published: Dec. 16, 2025 at 10:42 PM CST

PINE ISLAND, Minn. (KTTC) – Pine Island city council members approved two preliminary development plans Tuesday for Project Skyway, a 480-acre data center proposal, despite ongoing legal action and community opposition.

The Minnesota Center for Environmental Advocacy (MCEA) filed a lawsuit in October challenging the project’s Alternative Urban Area Review, an environmental study the organization has claimed is insufficient for the project to advance. A temporary restraining order is also pending to halt the project for more environmental studies to potentially be completed.

The major concerns residents are voicing include the project’s water usage, energy consumption, and noise pollution.

“There’s some really important questions, and it’s very frustrating because this is just a pattern of let’s move forward before we have important questions answered,” Pine Island resident Rev. David Derksen said.

Amanda Nygaard, another Pine Island resident, said she opposes “data centers located so close to residential homes that affects our quality of life and our livelihoods.”

15 other residents stood before the council during the public comment period of Tuesday night’s meeting, all of them voicing similar concerns for the future project.

Developer cites economic benefits

Ryan Companies, the project developer, stated the data center would generate tens of millions of dollars for the city, use less water than a similarly sized residential subdivision, and create hundreds of jobs.

The project website also states, Ryan Companies will follow all Minnesota noise pollution laws, pay for any public infrastructure advancement needs for the project, and meet Minnesota’s 2040 carbon-free mandate at no extra cost to residents.

Former Pine Island council member, Johnathan Pahl spoke during the public comment period, urging the council to move forward with the project and calling upon residents who think similarly to also make their voices heard.

“I also call on anybody in this town or who has a vested interest in this town to no longer remain silent if you believe that this is a possible good outcome for Pine Island,” Pahl said.

The city council went into closed session at the end of the meeting to discuss the lawsuit.

Ryan Companies declined to comment on the ongoing legal action.

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