A massive data center, proposed by Virginia-based CloudHQ, received preliminary approval from the Chaska City Council at its Oct. 21 meeting.

The 1.4-million-square-foot building is slated for the West Creek Corporate Center off Engler Blvd., near the western edge of the city. “This is the largest economic development project we will ever see,” suggested Mayor Mark Windschitl. “Many cities would love to see this in their community.”

The project doesn’t sit well with many of the residents in the adjacent Clover Ridge neighborhood, however. A number of homeowners rose to voice their opposition to the plans during the three-hour-long debate related to the council’s preliminary plat and zoning change discussion.

The industrial park already touts three data centers, but all of the others are much smaller in size – UHG (251,000 square feet), Stream (115,000 square feet), and US Bank (52,350 square feet).

The current plans for CloudHQ call for a two-story building, with approximately 715,000 square feet on each floor. Much of the building will stand 48.5 feet tall, but there will also be a number of towers 72.5 feet tall.

Current city rules restrict building heights in this industrial park to 36 feet, requiring the council to vote to allow for the taller structure. CloudHQ has agreed to construct a 30-foot-tall berm to screen nearby homes from the large building. Shrubs and trees will be planted along the top and sides of the berm to reduce noise created by the building’s heating and cooling systems situated on the rooftop.

But residents contend that the extra steps CloudHQ is taking won’t be enough. Susan Nelson called the project “enormous” and out of character for the area. She said construction noise over the two- to three-year construction project will kick up dust and disrupt their quiet neighborhood. “It will impact my quality of life,” she said. “This is going to decrease our property values.”

Sean Bogolin, who’s lived in the neighborhood for nine years, suggested that an even taller berm – maybe 36 feet – is needed. He also laments that the new business will block his view of beautiful sunsets from his home.

Mike Siemienas said the CloudHQ structure will be one of the tallest buildings in Chaska and doubts the trees will do an adequate job of screening homes during the 15 to 25 years it will take for them to fully grow.

David Rylee admitted that Chaska was “visionary” when it started planning for an industrial park catering to data centers 17 years ago. But allowing CloudHQ to exceed the established 36-foot-tall restrictions on such buildings is a “travesty,” he added.

Mayor Windschitl thanked the residents for their input but noted that the company was doing its best to protect the neighbors from noise, view and exhaust encroachment.

“They’ve really gone above and beyond,” he said. “They’re certainly making a strong effort.”

Council member Mike Huang said he believes the company will try hard to be a good neighbor, countering suggestions that the facility will be noisy and disruptive. “Data centers are generally pretty quiet,” he said. “A lot less impactful than an Amazon warehouse.”

Council member McKayla Hatfield told the crowd that she traveled to several large data centers in neighboring communities to check them out. She didn’t find them noisy or disruptive from a traffic standpoint.

When asked about the benefit Chaska residents would see from the proposed development, City Administrator Matt Podhradsky noted that the impact on the city property tax base would be significant. Additionally, a new 200MW substation will be required to service the new business, bringing additional revenue to the city-owned utility.

According to Brett Burnette, development manager for the CloudHQ project, the facility will create between 75 and 100 jobs. Construction costs will be around $1 billion.

Ultimately, the council voted 4-1 in favor of the preliminary plans, with Taylor Hubbard, who represents Ward 2 in that part of the city, casting the lone no vote.

Council members emphasized that one additional step remains in the approval process, and they suggested homeowners remain engaged so the project can possibly be improved even more.

In other business:

• The council approved a zoning amendment to allow a D-Bat baseball/softball training facility to locate in a Chaska Creek Way industrial building. The new local facility will be one of about 170 D-Bat franchisees across the nation and will lease 24,330 square feet of space. Owners hope the business will be operational by early next spring.
• The council approved the concept plan for the Goddard School Preschool and Early Childhood Education Center off Meadow Lane and White Oak Drive. The two-story building will offer 13,050 square feet of space and serve up to 159 children. Chris Walters reported the school hopes to be open by Jan. 1, 2026, serving families who are having a difficult time finding day care openings.
• A resident approached the council complaining about electric-bike traffic on local walking trails, requesting the city take action to limit the speedy vehicles on certain pathways.

“It’s a giant issue,” Mayor Windschitl said. “I’m 100% with you.”

City Administrator Podhradsky said city staff will research options the council can consider during an upcoming meeting.