A look at data centers in Minnesota

A look at data centers in Minnesota

News ClipThe Minnesota Daily·MN·7/29/2026

Minnesota residents and environmental groups are raising significant concerns about the environmental impact of data centers on water and electricity resources across the state. The Minneapolis City Council has enacted a five-month moratorium on new data center construction, and a statewide moratorium is also being proposed at the state capitol. The Minnesota Center for Environmental Advocacy has filed six lawsuits to ensure proper environmental review for data center projects.

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Gov: Minneapolis City Council, Minnesota State Legislature

Environmental concerns are escalating in Minnesota regarding the proliferation of AI data centers and their potential environmental repercussions, particularly concerning water and electricity consumption. Residents across the state are actively participating in local city council hearings and organizing to halt future data center construction, prompting discussions on local regulations and moratoriums.

The Minneapolis City Council recently announced a five-month moratorium on the creation of new data centers, excluding smaller facilities, citing catastrophic environmental impacts and significant community pushback. This pause aims to allow time for research into data centers' effects on the energy grid, water supply, environment, and economy. Concurrently, a separate initiative at the state capitol is proposing a two-year statewide moratorium to establish a more robust permitting and review system for data center developments.

Experts highlight that data centers demand vast amounts of clean water for cooling, straining existing treatment plants and risking the depletion of finite freshwater resources. Furthermore, they pose a significant threat to grid stability, consuming energy equivalent to 100,000 households and potentially leading to higher energy costs, blackouts, and a reliance on fossil fuels that could derail Minnesota's 2040 carbon-free electricity goals.

The Minnesota Center for Environmental Advocacy (MCEA), a St. Paul-based nonprofit, has filed six lawsuits against known or suspected data center projects in Minnesota. MCEA attorney Luke Norquist stated that these lawsuits aim to enforce environmental review processes under the Minnesota Environmental Policy Act, which requires studies of environmental impacts and public participation for massive projects. Concerns about a lack of transparency from companies and city councils, including signing NDAs, have fueled public distrust and underscore the importance of community advocacy in addressing these issues.