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City Council Agenda Packet 09-23-2024 Joint1. Agenda Documents Documents: JOINT CITY COUNCIL -PLANNING COMMISSION-EDA SPECIAL MEETING AGENDA 9-23-24.PDF DATA CENTER RESEARCH -REPORT.PDF PAGES FROM CHAPTER 3 - MONTICELLO 2040 VISION AND PLAN (20230727 ADOPTION).PDF 1.1. Agenda Documents Documents: SPECIAL MEETING ADDITIONAL INFORMATION.PDF AGENDA JOINT CITY COUNCIL/MONTICELLO PLANNING COMMISSION/ ECONOMIC DEVELOPMENT AUTHORITY WORKSHOP Monday, September 23, 2024 — 5:00 PM Monticello Community Center Planning Commissioners City Councilmembers: Economic Development Authority Staff: 1. Call to Order 2. Introductions & Purpose Chair Paul Konsor, Vice Chair Andrew Tapper, Teri Lehner, Melissa Robeck, Rob Stark Mayor Lloyd Hilgart, Charlotte Gabler, Sam Murdoff, Tracy Hinz, Lee Martie President Steve Johnson, Rick Barger, Jon Morphew, Halli Sittig, 011ie White Rachel Leonard, Sarah Rathlisberger, Angela Schumann, Matt Leonard, Jim Thares, Ron Hackenmueller, Tyler Bevier 3. What is a Data Center? (Guest: Thom Jackson, Association for Computer Operations Management) 4. Power: Data Center Needs (Guest: Jacob Andre, Xcel Energy) 5. Current City Land Use Perspective a. Environmental Review —AUAR (Guest: Alison Harwood, WSB) 6. Future Considerations a. Utility Requirements 7. Additional Information Requested/Direction 8. Adjournment r4�:"N - ri t an Consulting Ilc Steve.GrittmanConsulting@gmail.com MEMORANDUM Planning - Zoning - Land Use TO: Mayor Hilgart and Monticello City Council Monticello Planning Commission Angela Schumann, Community Development Director FROM: RE: GC FILE NO: DATE: MEETING DATE: PROPERTY ADDRESS: PID: BACKGROUND Stephen Grittman, City Planner Monticello — Data Center Land Use Research 120.02 — 24.04 September 16, 2024 September 23, 2024 (Joint Workshop) This analysis is being prepared to assist the City of Monticello in evaluating the potential for data center development in the community within the context of land use impacts. Within the last six months, there have been various inquiries regarding the potential for development of data centers of different sizes, locations, and configurations within the Monticello area. The developers have been seeking information on the City's ability to provide infrastructure and consider land use review and decision, which have raised a number of elements for policymaker discussion. Data centers are a new and distinct type of use in Monticello. Thus, this analysis is focused on determining the most appropriate land use and zoning designations for these uses, identifying the factors that the City may use to evaluate the acceptability of data center development in the City, and determining the impacts and locations that, if allowed, are most appropriate. Data Centers Descrintion Data centers are concentrations of computer servers that store data and software applications. There are several types, including proprietary "enterprise" centers that are specific to and paired with a single business enterprise, "co -located" centers that serve a variety of businesses that rent or sell data space, and "cloud" or "hyperscale" centers that manage data for large tech users such as Amazon, Google, Microsoft, Meta, or similar organizations. The data center facility consists generally of multiple computer servers, cooling systems, infrastructure such as electricity systems and structures, back-up power generation, and related functions. For a comprehensive description of data center function, use, design, and other aspects of data centers, various web locations can provide additional information, including: httas://www.techtarget.com/searchdatacenter/definition/data- center#:-:text=Cloud%2Dbased%20data%20centers..Web%20Services%2C%20Google%20or%20Micro soft. Land Use. 2040 Land Use Guidance and Zoning Designation General Land Use Comments Independent data centers (such as cloud/hyperscale or co -location centers) are typically seeking locations in remote sites and are typically large structures (200,000 square feet or more), requiring tens or even hundreds of acres of land. Many data centers are surrounded by external support infrastructure equipment including back-up generators and cooling equipment. However, because they generate very low levels of employment (post construction), they do not require large parking lot fields or extensive truck docking and circulation space. Some industry estimates place permanent employment per acre at about 10% of a comparably sized manufacturing facility. The building -to -land ratio of these uses, based on recent concept layouts provided to staff (and supported by other sources), show approximately 25,000 square feet of building footprint per acre -nearly 60% land utilization. This is a very high ratio as compared to other industrial uses and even commercial uses. Byway of comparison, the developed portion of the City's Otter Creek industrial campus area, with a mix of manufacturing, warehousing, and office uses (such as Karlsburger, Suburban, Dahlheimer), has a building -to -land ratio of approximately 20%. Even with intense development, industrial areas are unlikely to exceed 30% ratios. Thus, while data centers (as economic development targets) provide very low employment, they may compensate through more intensive land utilization, resulting in the potential for larger property tax revenues per acre. Their lower employment creation and nature of use also results in significantly lower traffic volumes and truck traffic impact on nearby roadways. Other aspects of data center development raise different issues. These can include extensive City water use and demand (and a consequent increase in sanitary sewer flow), extraordinary power demand, and notably, significant noise impacts from generator and/or cooling equipment operation. Quantifying these impacts would be important for the City to make judgments about the extent to which data center development is compatible with the City's land use and economic development objectives. Land Use Guidance Considering the general function and operation of these facilities, and that there is no direct customer interaction, data centers would most appropriately be considered an industrial use within Monticello's existing land use framework. The City's 2040 Comprehensive Plan document describes three general categories of industrial use. "Employment Campus" is described as applying to "to areas of Monticello where a high concentration of jobs is desired" While the Employment Campus designation includes reference to "Computer Technology" land uses, this reference is intended and commonly read as technologyjobs consideringthe employment goals of this land use category. Strengthening the employment focus of the Employment Campus designation within the 2040 Plan would lend additional clarity and support to this 2040 Plan goal. The Employment Campus designation generally points to zoning districts including Industrial -Business Campus (IBC). The 2040 Plan identifies "General Industrial" uses as those which are reliant on industrial service and outdoor storage. The plan suggests that the potential for significant off -site impacts on residential or commercial development may mark a particular industrial enterprise for this category. The plan suggests that General Industrial uses will most commonly be regulated through the application of the 1-2 (Heavy Industrial) zoning district. The "Light Industrial Park" land use category bridges the Employment Campus and General Industrial descriptions. This category accommodates a broad range of industrial businesses and specifies zoning districts that include both IBC (Industrial Business Campus,) and 1-1 (Light Industrial) zoning districts. The land use category focuses on activities that are primarily indoor, and with very limited impacts, other than traffic generated by employees and trucking activity in support of business shipping operations. Presuming (subject to verification) that noise from generators or cooling systems can be controlled, data centers fit most appropriately into the "Light Industrial Park" land use category. There is an outdoor mechanical equipment aspect to the uses, but not outdoor storage in the usual sense. Because these uses do not generate employment in great numbers, they are also inconsistent with the Employment Campus designation. In this regard, and perhaps others, the language of both the Employment Campus and Light Industrial Park designations in the 2040 Plan would benefit from additional updating to address the changing land use conditions surrounding data center development. Reinforcing the employment focus of the Employment Campus land use category is the primary consideration; better defining the meaning of "computer technology" as an example use with a focus on employment would be another. In the Light Industrial Park category, emphasis on the compatibility with other industrial businesses, and mitigation of any potential heavier impacts would be important. Even more specifically, if data center development is found to be an attractive economic development objective, specifying its location in Light Industrial Park land use area would be a valuable tool in directing this use to appropriate locations. Zoninga Desi;�nation The Light Industrial Park land use designation points the City toward either an 1-1 (Light Industrial) or IBC (Industrial Business Campus) zoning designation. For the reasons noted above (primarily low employment numbers, but also potential impacts on surrounding Employment Campus uses such as commercial or office uses, staff believes that the 1-1 District is the better fit in a Light Industrial Park land use category for data center uses. That said, the current zoning ordinance does not include specific zoning use designations or classifications that are good fit to address the nature and impacts of Data Center development. For example, data centers are not light manufacturers (producing and assembling goods and products), nor are they directly a warehouse (with shipping and receiving of goods and products). Noise, architecture, site design, extensive outdoor mechanical equipment, buffering issues, and possibly other impacts set this use apart from the City's more common industrial land uses. Because of these differences, identifying Data Centers as a separate use, and then including the use as a Conditional Use Permit with specific performance standards in the 1-1 District would be the more direct way to allow them, and address their potential impacts. In sum, it is recommended that the language of the zoning ordinance be updated to develop a specific use classification for data centers, and that specific performance standards by developed to address their site impacts. Land Absorption and Public Infrastructure The large size of the buildings being discussed can rapidly consume the City's available industrial land, again at a pace not anticipated by prior planning. In some cases, developers will seek to acquire enough land to facilitate future expansion and/or additional data center buildings in a consolidated format. The City will want to evaluate the demand for this type of land use relative to the amount of currently available and planned Light Industrial Park Lang area, The City will also want to consider how specific locations can create spillover impacts on other future land use planning, particularly if the proposed areas are around Bertram Chain of Lakes park, both for the park use itself and for the City's high -amenity residential opportunities. As suggested above, there are several potential aspects of Data Center Development beyond land use that may impact the City's consideration of this unique type of development. These uses can be prodigious users of water for cooling (depending on the style of cooling they choose), and likewise, create impacts on the City's wastewater treatment capacities. Some development parties have indicated to staff that with advances in recirculation and evaporation technology the volume of wastewater sent to the City's treatment facility is likely to be in the range of one-third the volume of purchased water use. Nonetheless, these impacts can accelerate the point at which the City's infrastructure capacities reach the thresholds at which new infrastructure expansions are required. This demand on public infrastructure can also be seen as an opportunity on which the City may capitalize as it seeks to grow into new areas. The costs of new trunk infrastructure facilities, whether those are streets, sanitary sewer, water, or otherwise, are often stumbling blocks for incremental growth. Large projects such as data centers can, with reasonable foresight, provide a downpayment on the infrastructure growth needs. The City is currently completing utility studies which will evaluate both the impacts and necessary improvements in more detail. Additional study will be required as new proposals are considered. Summary Actions to Consider For Data Center development planning, staff suggests the following considerations: • Revise the 2040 Comprehensive Plan to more definitively focus on the employment density objectives of the Employment Campus land use designation, including clarifying references to "Computer Technology" land uses. • Revise the 2040 Comprehensive Plan to specify that data center land uses are best suited to the Light Industrial Park land use category, helping to ensure that the demands on the City's planning goals are properly addressed and data center development is not mislocated. • Revise the Zoning Ordinance to create a use category for Data Centers, including a broad definition, and designation of this use by Conditional Use Permit in the 1-1, Light Industrial District only. • Revise the Zoning Ordinance to create a list of considerations and use specific standards for consideration of the CUP for Data Center uses. Factors may include (among others): o Proximity to high -amenity residential land areas. o Availability of adequate sewer/water/road infrastructure for the foreseeable future beyond data center development, and recapture of reasonably attributable costs. o Adequate visual buffers are included to ensure that the building uses are compatible with other similar uses in the zoning district. o Adequate measures to mitigate noise emanating from the building and its mechanical systems. SUPPORTING DATA Monticello 2040 Vision + Plan, Excerpts 411� m Monticello))) 2040 VISION + PLAN - COMPREHENSIVE PLAN I NOVEMBER 23RD, 2020 ADOPTION E= City of Monticello Boundary ......... Monticello Orderly Annexation Area (MOAA) 0 Parcels C Streets +H+ Railroad Water Bodies 0 Development Reserve (DR) Open Space and Resource Conservation (OSRC) City Parks and Recreation (PR) 0 Estate Residential (ER) Low -Density Residential (LDR) 0 Traditional Residential (TR) EXHIBIT 3.3 0 Mixed Neighborhood (MN) 0 Mixed -Density Residential (MDR) 0 Manufactured Home (MH) 0 Downtown Mixed -Use (DMU) Community Commercial (CC) Regional Commercial (RC) Commercial and Residential Flex (CRF) Employment Campus (EC) 0 Light Industrial Park (LIP) General Industrial (GI) 0 Public and Institutional (P) 0 Xcel Monticello Nuclear Generating Plant (MNGP) MONTICELLO 2040 VISION + PLAN 55 EMPLOYMENT AND INDUSTRIAL DESIGNATIONS Monticello currently contains approximately 194 acres of land used for industrial and employment purposes. The industrial land in Monticello is generally located in the Otter Creek Business Park, along Chelsea Road between Edmonson Avenue and Fenning Avenue, and the Cargill complex in downtown. The Future Land Use Map includes approximately 1,729 acres of industrial and employment designated land to promote a strong industrial business sector represented by increased jobs and tax revenue generated for Monticello. The goals for developing workforce and tax base are found in the Economic Development Chapter of this plan. Three designations classify industrial and employment generating uses. Li4ht Industrial Park This designation encourages the broadest range of industrial related land uses, including warehousing and distribution. Three large areas of the City are designated as Light Industrial Park. This includes Otter Creek Business Park and parcels located directly to the north on Chelsea Road. Two large portions of the MOAA have also been designated as such, including portions of the Northwest Study Area and a large area just south of the city boundary on the east side of Highway 25. The planning objective for expanding the amount of industrially designated land is to increase the number and types of industrial and employment generating businesses in Monticello. General Industrial The General Industrial designation applies to areas centered along Chelsea and Dundas Roads. These areas include uses that may require automotive access for customer convenience, servicing of vehicles or equipment, loading or unloading, outdoor storage or parking of commercial service vehicles. Cargill's facility adjacent to the Downtown is also designated as General Industrial. Employment Campus An Employment Campus designation applies to areas of Monticello where a high concentration of jobs is desired. The design character of these areas includes site and building design elements that incorporate landscaping, screening, and building treatments that promote a high -quality visual environment. Open spaces and smaller commercial uses or restaurants may be intermixed to serve the employment base. Other permitted employment uses may include advanced manufacturing, research and development, technology and communications, and professional and corporate office uses. TABLE 3.4.- FUTURE LAND USE EMPLOYMENT AND INDUSTRIAL ACREAGES Light Industrial Park 757 General Industrial 220 Employment Campus 752 Source: Cargill Kitchen Solutions Inc. Source: WGI Industries MONTICELLO 2040 VISION + PLAN 61 TABLE 3.7.- FUTURE LAND USE ACREAGES Note: This acreage includes both developed and undeveloped land within the City and MOAA. MONTICELLO 2040 VISION + PLAN 63 EMPLOYMENT CAMPUS (EC) The Employment Campus designation is characterized by a campus -like environment on large parcels. It also provides a high level of amenities including pedestrian connections and architectural and landscape treatment that maintain high standards of visual quality in a campus like environment. Characteristics such as noise, vibration and odor do not occur or do not generate significant impacts. Hazardous materials handling and storage may also occur but must be stored indoors. This designation primarily applies to areas used for research and development, medical laboratories, advanced and light manufacturing, green and renewable technology development (not installations), computer technology, corporate headquarters and office campuses, and industrial engineering facilities. Some commercial uses such as restaurants and hotels are also allowed. Employment • Research and Development • Advanced and Light Manufacturing • Green & Renewable Technology Development • Corporate Headquarters and Offices Campuses • Industrial Engineering Facilities Commercial • Restaurant • Child Care • Corporate Hotel Recreational • Plaza • Public Space Primary Mode Vehicular with f� access to collectors and arterials Transit or shuttle service Secondary Mode Pedestrian -friendly streetscape Bicycle facilities and parking • Floor Area Ratio (FAR) ��� 2018 Correlating 0* 0.50 to 0.75 Zoning District • Height - IBC Up to 6 stories Business • Lot Area - Campus District N/A 80 9« LAND USE, GROWTH AND ORDERLY ANNEXATION LIGHT INDUSTRIAL PARK (LIP) The Light Industrial designation accommodates a variety of light industrial uses. Uses are characterized by a higher level of amenities not required in the General Industrial designation. Characteristics such as noise, vibration and odor do not occur or do not generate significant impacts. Hazardous materials handling and storage may also occur but must be stored indoors or screened from the public right-of-way. Activities such as the handling of hazardous materials and outdoor storage are limited. This land use designation does not include the principal retail commercial uses found in the Employment Campus and a more limited range of commercial activities. Transportation impacts which occur are in direct support of the manufacturing or production use. The Light Industrial land use is distinguished from General Industrial land use by reduced potential for noise, visibility, truck activity, storage and other land use impacts. The Light Industrial Designation accommodates uses such as processing, assembly, production, and fabrication manufacturing which uses moderate amounts of partially processed materials, warehousing and distribution, research and development, medical laboratories, machine shops, computer technology, and industrial engineering facilities. Office uses also occur within these areas. This designation also accommodates limited local -serving commercial uses which may generate storage or noise impacts. Industrial • Warehousing and Distribution • Light Manufacturing • Assembly • Production & Fabrication • Research and Development • Medical Laboratories • Computer Technology Commercial • Minor Auto -Repair • Self Storage Primary Mode Vehicular with access to collectors and arterials ifs Transit or shuttle service Secondary Mode Shared bike/ pedestrian facilities 2018 Correlating • Floor Area Ratio ♦ Zoning District (FAR) 0.50 to 0.75 Light Industrial District • Height - Up to 4 stories IBC Industrial • Lot Area - Business Campus N/A (Amended March 2023; Resolution 2023-27) MONTICELLO 2040 VISION + PLAN GENERAL INDUSTRIAL (GO The General Industrial designation allows for a variety of industrial uses that may need separation from residential or commercial uses. These uses have the potential to generate off -site impacts including noise, odors, and vibration. Buffering, screening and landscape treatments may be required to enhance public rights -of -way and ensure land use compatibility. Transportation needs and impacts beyond those in direct support of a site -specific manufacturing or production use may occur but require additional consideration or mitigation. This designation includes manufacturing, production and assembly, wholesale trade, production brewing, contracting yards, warehousing and distribution terminals and other industrial uses that may need separation from residential or commercial uses. This designation also accommodates limited local -serving commercial uses which may generate storage or noise impacts. Industrial • Manufacturing • Warehouse and Distribution Operations • Recycling Facilities • Production Brewing • Construction and Contracting Yards • Machinery/Truck Repair Commercial • Major Auto Repair • Commercial Entertainment/ Outdoor Recreation Primary Mode Vehicular with access to collectors and arterials Transit or shuttle service Secondary Mode Shared bike/ pedestrian facilities • Floor Area Ratio (FAR) 2018 Correlating 0.50 to 0.75 oN* Zoning District • Height Up to 2 stories Heavy Industrial • Lot Area - District N/A 82 LAND USE, GROWTH AND ORDERLY ANNEXATION DATA CENTER JOINT WORKSHOP SEPTEMBER 2024 INTRODUCTION 1. Workshop Purpose 2. What is a Data Center? 3. Power: Data Center Needs 4. Current City Land Use Perspective 5. Future Considerations 6. Utility Requirements Financial Components 7. Additional Information & Direction CITY OF Monticello LAND USE DISCUSSION 9 General Characteristics o Range of site and building size o Tax base o Employment o Site features o Public infrastructure demand .; ;� '�- • ,. .fin,.,•.• •• .,) a k b sle •• IleNow— •., r'i• CITY OF Monticello I. \010, • m Pm -I■ II00ON alI � � N • +� \ , :1 lq!L'ii ' III I. 1 FUTURE LAND USE MAP ■' it II -- '��� Immm mm� LAND USE & ABSORPTION Development Reserve Open Space and Resource Conservation City Parks and Recreation Estate Residential Low -Density AeMdeMal Traditional Resi lerA Mixed Neighborhood Mixed -Density Residential Manufactured Home Downtown Moved Use Ccmmuniy Commercial Regional Commercial __.LC�mmarri od any nnf�oJ Floor Light Industrial Park uenerai inausinai Employment Campus Public and Institutional Xcel Monticello Nuclear Generating Plant J:a 1,102 L M IBM 13�s as 757 L ,i� 752 268 616 LAND USE RECOMMENDATIONS • Revise the 2040 Comprehensive Plan to focus on the employment density objectives of the Employment Campus land use designation, including clarifying references to "Computer Technology" land uses. • Revise the 2040 Comprehensive Plan to specify that data center land uses are best suited to the Light Industrial Park land use category, recognizing use impacts, supply and land absorption potential. • Revise the Zoning Ordinance to create a use category for Data Centers, including definition, and designation by Conditional Use Permit in the 1-1, Light Industrial District. • Revise the Zoning Ordinance to create a list of considerations and use specific standards for consideration of the CUP for Data Center uses. o Proximity to high -amenity residential land areas. o Availability of adequate sewer/water/road infrastructure for the foreseeable future beyond data center development, and recapture of reasonably attributable costs. o Adequate visual buffers are included to ensure that the building uses are compatible with other similar uses in the zoning district. o Adequate measures to mitigate noise emanating from the building and its mechanical FUTURE CONSIDERATIONS • Utility Requirements & Study • Impact and Capacity Standards • Feasibility and Cost Recovery • Financial Analysis • Available Tools CITY OF Monticello DISCUSSION • Questions • Concerns • Additional Research CITY OF Monticello Data Center Overview Presented to: City of Monticello, MN September 23, 2024 GREATER MINNESOTA CHAPTER Advancing Data Center and IT Infrastructure Professionals Information Classification: General C7 Data Center Overview Thom Jackson, PE Data Center Design Engineer MN A FCOM Chapter President • Registered Professional Engineer (PE) in MN • LEED Accredited Professional • Dept. of Energy Data Center Energy Practitioner • Data Center Mentor ow AFCOM GREATER MINNESOTA CHAPTER Advancing Data Center and IT Infrastructure Professionals Data Center Overview Just a room full of computers Data Center Overview Just a room full of computers Data Center Overview What uses a data center? Retail Transactions Phone Call Directions Documentation C( RAn' O � Email Health Records EEI Streaming TV Social Media Music Internet BankingStreaming Apps Data Center Overview Data Center Sizes / Types Types • Enterprise • Colocation • Edge • Hype rsca l e Growth Rate • 2000 - 1 M W • 2010 -10 MW • 2024 -100 M W+ Figure 5: Primary Markets Historic Net Absorption, Preleasing & Under Construction Megawatts (MN) 3,500 • Net Absorption • Released • Under Construction S.- - Research wR[ D.I. -.1 solutions. su - ',0rca Data Center Overview Where is the Cloud? -* -W Data Center Overview Are data centers important? • Outages • 911 calls, Retail, Internet connectivity for business • Security • Health Records, Financial, School Records, Photos • Speed and Accuracy • Bank transactions, Stock Market, Favorite Show! Data Center Overview Artificial Intelligence — Data Center Impact W Look Up Bombay > Friday • Mar 15, 2024 • 8:06 AM Adjust n IMG 5649 Apple Whone 14 Pro Main Camera — 24 mm f1.78 12 MP • 3024 x 4032 2.5 MS IS0800 24 mm 0ev f1.78 1/60s 1 Al tool ChestLink version 2.6, Oxipit Posteroanterior Anteroposterior view? view? 1 �l AUTOGENERATED REPORT Data Center Overview What supports a Data Center? Sys Building Power Cooling Internet / Cabling IT Data Center Overview Current Average Size • All DCs are different but current average building blocks: • Building Footprint N 225,000 sf • Three 10 MW data halls N35,000 sf each • Chillers on the roof • Data Center Overview e Recent Concerns - Energy Usage e79 • Always Increasing Energy Efficiencies • Renewable Energy Deployments • Green Grid - founded in 2007 • Defined Power Usage Effectiveness (PUE) • Defined Water Usage Effectiveness (WUE) Data Center Overview Recent Concerns — Water Usage 0 • Depends on available water utility • Depends on chosen cooling technology • Evaporative Cooling Tower - up to 15 gpm / MW • Closed Air -Cooled Chiller - minimal Data Center Overview Recent Concerns - Noise • IT Equipment Noise • Far within concrete building • Generators - Emergency use only • Sound Attenuation • Cooling Equipment • Sound Dampening Fans Data Center Overview Recent Concerns - Pollution • Emergency Generators • Used just like Hospitals -only during utility outage • Testing one hour per month • Meets EPA requirements • Data Center Overview Recent Concerns — Traffic • Construction Traffic • Once Built, box truck deliveries of: • IT equipment • Maintenance materials • Employees 24/7 • Data Center Overview Recent Concerns - Jobs for Local Area C] C] C] Hundreds of trades jobs during N24-month construction Highly skilled IT workforce Trades jobs to maintain MEP equipment • Data Center Overview Why Minnesota? • Considered a Tier 2 Market • Free Cooling Potential > 80% of the year • MN tax incentive program • Available Power & Land Data Center Overview Take sways • Data c:enter:3 are behind every business. • Technology Growing • Al will require more • Good Neighbor • Great Jobs • Concerns Manageable C: iF1 R n a • Data Center Overview AFCOM Information Classification: General GREATER MINNESOTA CHAPTER Advancing Data Center and IT Infrastructure Professionals C7 wsb Alternative Urban Areawide Review City of Monticello Council Work Session 6 Relevant Terms and Definitions EQB: Environmental Quality Board AUAR: Alternative Urban Areawide Review EAW: Environmental Assessment Worksheet EIS: Environmental Impact Statement RGU: Responsible Government Unit (City of Monticello) Significant: cannot be undone and/or addressed through a formal review or permitting process. z What is an AUAR? • State environmental review document • Hybrid of an EAW and EIS • Studies the effects different development scenarios/land uses may have on the environment and community infrastructure • Updated every 5 years Purpose of an AUAR • Used as a planning tool • Identify the potential for cumulative impacts of anticipated development within an area • Identify mitigation measures for potential impacts • Informs future permitting, planning, and zoning decisions • Does not approve or deny a project When is review required? • State statue (MN Rule 4410) requires environmental review for various types of development types and densities. • AUARs are an allowable type of environmental review for certain development types. • Eligible development types include: • Residential, commercial, warehousing, and light industrial Who manages the AUAR? • City is RGU and is the owner of the document and responsible for ensuring completeness and accuracy. • Future mitigation measures identified may be responsibility of developer or city — determined at time of plan review 4 Topics Covered in an AUAR • Land Use and Cover Types • Required Permits/Approvals • Geology and Grading • Water Resources • Wildlife and Habitat • Contamination • Greenhouse Gas/Climate Impacts • Water and Sewer Infrastructure • Transportation • Historic Properties • Visual • Air and Noise • Cumulative Potential Effects • Mitigation Plan 5 General AUAR Timeline Order to Prepare Draft AUAR Final AUAR RGU Adopts Order to Prepare AUAR RGU prepares Draft AUAR. Distribution for 30-day comment period Response to comment and revisions to AUAR Distribution for 10-day agency objection period AUAR Adoption If no objections, RGU adopts AUAR M Scoping AUAR • Required by some development scenarios: • Specific project included that would exceed EIS thresholds • Specific project included that exceeds 50% of the study area • Involves a formal review of the Draft AUAR Preparation Order prior to Final Order • Allows review and comment on the general scope of the AUAR scenarios and study area. • May suggest additional development scenarios • May suggest expanded study area • May identify additional relevant issues What follows adoption? • AUAR remains valid for 5 years for scenarios studied. • All development within study area is covered for environmental review. • Developers review and implement mitigations measures, as necessary. Updating the AUAR • Must be updated every 5 years. • Must be updated if proposed development differs/is more impactful than studied scenario(s). g wsb THANK YOU XceiEnergy@ Xcel Power: Data Centers Jake Andre I Manager -Economic Develop nt © 2024 Xcel Energy inter Boom Significant rise in interest last 18-24 months due to AUML Minnesota has been identified as a massive emerging market Climate, incentives, renewable energy, labor, fiber Forcing utilities to rethink generation planning Typically grow at 1-2% Need to bring on significant amount of new generation to serve Xcel Energy° 345kV and 115kV transmission lines, which ensure a reliable power supply crucial for uninterrupted operations. Established Infrastructure: Monticello's existing infrastructure offers a direct pathway to the available spaces Customer Advantages: Clients will benefit from superior power quality and receive discounts on voltage. 1 �® 't _J�J • 1, The proposed Sherco Solar Project near the Sherco • Power Plant in Becker will have a capacity of 460 MW, Relationship to Scale providing enough energy to power 100,000 homes. 9GW system Solar We own and operate two nuclear power plants, which produce nearly 30% of the o electricity we provide to our customers in the With three facilities, including the High Bridge plant in Upper Midwest and supporting Minnesota's St. Paul, which has a capacity of 530 MW, they can carbon reduction goals with carbon -free generate enough energy to power between 397,500 Nuclear energy. and 530,000 homes. • Xcel Energy's Monticello Nuclear Natural Gas Generating Plant with a capacity of 671 MW, the plant's ability to power 500,000 homes indicates a significant economic With our Hennepin Island Hydro Generating Station, impact on the region, potentially supporting 13.9 MW of hydro power can supply electricity to the development of additional Q approximately 10,425 to 13,900 homes. infrastructure, such as data centers. Xcel Energy's Freeborn Facility in Freeborn Hydro :�_D County, MN, with a capacity of 200 MW, can power around 65,000 homes. We own or purchase about 195 MW of biomass • 100 turbines 00 generation on our systems — enough to power more kT� than 140,000 average -size homes. All the biomass Wind �j a plants that we own are former coal plants. © 2024 Xcel Energy Biomass Typical Infrastructure Involves running a 345 kV transmission line to connect a substation, which will then link to the data center. • This high -voltage line is crucial for ensuring reliable and efficient power delivery to support the data center's significant energy demands. Xcel Energy also offers various programs including energy audits, equipment rebates, and extensive energy studies, to help businesses optimize their data cente operations Rosemount Meta Data Center © 2024 Xcel Energy 5 Planning and Permitting Process e �= Interconnection Request Submission (requires site control) Includes details such as voltage, load ramp, substation ownership, location, etc. System Impact Study (SIS) (approximately 9-12 months, payment required) — Provides planning -level estimates on necessary upgrades and associated costs.' Facility Study (approximately 3 months, payment required) — Offers a more precise estimate (±20%) on costs and timing. Post Studies - Transmission approval from the State of Minnesota (permit, 12-month process) OInterconnection Agreement/Electric Service Agreement — Formalizes the commitment from both parties regarding payment and delivery. © 2024 Xcel Energy Evaluation of Larger System Impacts Transmission Upgrades Xcel Energy needs to invest in both generation and transmission infrastructure to meet data center demands. This includes building new and upgrading transmission lines to handle increased loads. Incremental Generation — Mix of Renewables and Gas Xcel Energy will likely use a mix of renewable energy and dispatchable gas generation. This hybrid approach ensures a stable power supply, especially during peak demand or when renewable sources are low. Downward Pressure on Rated Large electric users like data centers help utilities spread costs across the system. Data center development will help keep other customers' bills low Positive Impacts on System Repairs and Maintenance New infrastructure investments can improve grid reliability and efficiency, leading to fewer outages and reduced maintenance costs. New Technology — Utility -Scale Batteries and SMRs Utility -scale batteries are crucial for balancing the grid and storing excess renewable energy. They provide backup power during peak demand, reducing reliance on gas generation and enhancing grid stability. © 2024 Xcel Energy 'r9Y © 2024 Xcel Energy