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Apple Valley Today
By the People, for the People
Apple Valley Rejects Proposal for Large Data Center
City cites water supply concerns and incompatibility with comprehensive plan
Apr. 3, 2026 at 6:40am
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An abstract, minimalist representation of the data center proposal that Apple Valley has repeatedly rejected, highlighting the city's focus on strategic land use over economic incentives.Apple Valley TodayThe city of Apple Valley, Minnesota has consistently denied a proposal from Oppidan Development and landowner Rockport LLC to build a large data center complex on 134 acres of land. The city cited the plan's incompatibility with the city's comprehensive plan, as well as an inability to fund the necessary water treatment and storage expansions to support the data center's projected water needs.
Why it matters
Data center development has become a major point of discussion in Apple Valley and across the state, as cities weigh the economic benefits against concerns over water usage, infrastructure costs, and land use compatibility. Apple Valley's repeated rejections of this proposal highlight the challenges cities face in balancing these competing priorities.
The details
Oppidan and Rockport had sought to rezone the 134-acre site, which is currently part of a mining operation, to allow for the construction of up to 1 million square feet of data center buildings and 60,000 square feet of support buildings. However, the city's planning commission and city council unanimously denied the requests, citing the plan's incompatibility with the city's comprehensive plan, which calls for a mix of retail, hotel, office, and other uses along the roads where the data center would be located.
- In February 2025, Oppidan and Rockport first applied to rezone the land from 'Sand and Gravel' to 'Mixed Use Business Campus' to accommodate the data center proposal.
- On March 18, 2026, the planning commission unanimously recommended denial of the proposal.
- On March 26, 2026, the city council unanimously denied the preliminary plat, site and building plan, building permit, and conditional use permit for the data center project.
The players
Oppidan Development
The real estate development company that proposed the data center project on the 134-acre site in Apple Valley.
Rockport LLC
The landowner of the 134-acre site in Apple Valley where Oppidan proposed building the data center.
Apple Valley
The city in Minnesota that has repeatedly denied the data center proposal, citing concerns over water supply and land use compatibility.
What’s next
The city says it will need to study the impact of Rockport's proposal to use private water wells if the project is approved, and is seeking $40 million in bond funding from the state legislature to address its broader water infrastructure needs.
The takeaway
Apple Valley's repeated rejections of the data center proposal highlight the challenges cities face in balancing economic development with concerns over water usage, infrastructure costs, and land use compatibility. As data centers become an increasingly prominent part of the business landscape, more cities will likely have to navigate these complex tradeoffs.
