Eagan Sues Data Center Over Unpermitted Chillers

The city alleges Eagan Capital operated temporary cooling equipment at its Pilot Knob Road facility without required permits.

Updated on Nov. 10, 2026 in Data Centers

Bold flat-color editorial illustration of a single rectilinear data center block with ventilation louvers beside a sound barrier, set under a pale cold sky. — The City of Eagan sued Eagan Capital on Monday, alleging its Pilot Knob Road data center ran temporary chillers without required permits and exceeded noise limits. AI Illustration. Upload story photo >

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The City of Eagan has sued Eagan Capital, a data center company on Pilot Knob Road, for operating temporary chillers without permits. Mayor Mike Maguire announced the legal action at a November 2 city council meeting.

Why it matters

The dispute centers on whether data centers are permitted in the Research and Development zoning district, which the city says they are not. The case follows an earlier lawsuit Eagan Capital filed against the city over a data center moratorium.

Aerial pictures from 2025 show no chillers on the property, while 2026 images show chillers in place. The city denied an interim use permit and an application for a mechanical permit for permanent chillers.

The players

City of Eagan

The Minnesota suburb of Eagan is the plaintiff in the lawsuit and has taken action to regulate data center development within its borders.

Eagan Capital

Eagan Capital is a data center company operating a facility along Pilot Knob Road that is now the defendant in the city's lawsuit.

Mike Maguire

Mike Maguire is the mayor of Eagan who announced the legal action against the data center operator at a city council meeting.

The details

Eagan Capital installed temporary chillers to cool the data center and prevent overheating, then applied for a permit after being notified one was required. The city also alleges noise from the facility exceeds code despite a sound barrier, affecting the nearby Lawn Oak and Pilot Knob area.

May 2026: Eagan Capital told the council it did not think a permit was needed for the chillers.
November 2, 2026: Mayor Mike Maguire announced the lawsuit at a city council meeting.

Under the Hood

The dispute turns on Eagan's zoning code, which does not list data centers as a permitted principal use in the Research and Development district. The city is enforcing that restriction against the chillers and permit applications at the Pilot Knob Road facility.

Residents near Pilot Knob Road may notice ongoing noise and construction tied to the chillers while the case proceeds. The outcome could determine whether data centers operate in Eagan's Research and Development district.

The takeaway

Local zoning rules can determine whether large data center operations are allowed to proceed. Residents and businesses in similar areas should check whether their municipality permits such facilities before taking action.