Downtown Minneapolis data centers: What's next?
Minneapolis has enacted a six-month moratorium on large data center construction, following similar actions in Invergrove Heights and Eagan. The pause aims to allow city officials time to research potential impacts and update relevant ordinances. This local approach is raising concerns about a fragmented regulatory landscape across the state.
The Minneapolis City Council has imposed a six-month moratorium on data centers larger than 350,000 square feet, a measure now in effect. This decision follows similar actions in Invergrove Heights and Eagan, which implemented year-long pauses on data center development. The moratorium is intended to provide city officials with time to research potential impacts, update ordinances, and address issues ranging from permitting to utility infrastructure.
Experts, including Dan McConnell of the Minneapolis Building and Construction Trades Council, express concern that a fragmented, city-by-city regulatory approach is emerging. They suggest that the state of Minnesota might be better equipped to study and regulate data centers to avoid a "patchwork" of rules. While McConnell called Minneapolis's deal a "compromise," he stated his preference against a moratorium, emphasizing the need for responsible investment.
A local nonprofit environmental advocacy group supports the pause, highlighting that existing urban data centers in Minneapolis use significantly less electricity (around 10 megawatts) compared to the 600 megawatts proposed in some rural areas. Minneapolis Mayor Jacob Fry, in a recent statement, emphasized that the city "should not close ourselves off to potential options that are good business." Discussions also touched on the cumulative impact of multiple smaller data centers versus a single large one, though experts do not anticipate a significant influx of smaller projects in the coming six months.