Minneapolis enacts data center moratorium; Minnesota Legislature fails to pass NDA ban
Minneapolis has enacted a six-month moratorium on new data centers amid growing concerns about their impact. The Minnesota Legislature failed to pass a bill banning nondisclosure agreements between data center developers and local communities. Residents near Monticello are actively protesting a proposed data center project.
Minneapolis has implemented a six-month moratorium on new data center developments. This decision comes amidst increasing scrutiny and public debate regarding the physical and environmental impact of these facilities, particularly their high consumption of power and water, and noise pollution. Residents in Monticello, Minnesota, are actively protesting a proposed data center project.
In a related legislative effort, the 2026 Minnesota Legislature failed to pass a bill that would have banned nondisclosure agreements (NDAs) between data center builders and local communities. This bill aimed to increase transparency in development processes, with Microsoft notably becoming the first major company to publicly state it would no longer sign NDAs where it plans to build. The article draws parallels between the current AI data center boom and the late 1990s internet infrastructure buildout, noting key differences such as the scale of investment, the industry's preference for anonymity, and the shift of development to rural and exurban areas.
Major contractors in data center construction, including Golden Valley-based Mortenson and Minneapolis-based Ryan Cos., along with Adolfson & Peterson of Bloomington and Kraus-Anderson of Minneapolis, are significantly involved in this rapid expansion, highlighting substantial private investment within Minnesota. The piece suggests that while the current investment in AI-related data centers is unprecedented, there's a possibility of overinvestment or disruption by future technological advancements.