Minneapolis City Council enacts a six-month pause on some data centers

The Minneapolis City Council voted 8-5 to implement a six-month moratorium on new data centers larger than 350,000 square feet. The initial proposal was for a year-long pause, but an amendment shortened it to six months, a compromise lauded by some councilors.

The moratorium includes an exemption for data centers under 350,000 square feet located within the downtown core, an area defined by Interstates 35W and 94, Plymouth Avenue, and the Mississippi River. Councilors supporting the pause, like Jamison Whiting (Ward 11), believe it provides crucial time for the city to research best practices and govern effectively without entirely dismissing the potential benefits data centers can offer, particularly downtown. Other councilors, such as Elizabeth Shaffer (Ward 7), highlighted the investment and union job opportunities these urban data centers could bring, noting their potentially faster connections and smaller cooling systems compared to larger rural facilities.

Conversely, some council members, including Robin Wonsley (Ward 2), voiced concerns about the cumulative environmental impact and strain on the electrical grid, arguing that local governments must protect cities from what they termed "extractive and exploitive forces like big tech." Ward 3 Councilor Michael Rainville opposed the moratorium, fearing it would deter developers and reduce investor confidence in Minneapolis. The moratorium is set to run until November 21, 2026, during which time councilors will update zoning ordinances and prepare a public report on environmental impacts, permitting, and utility infrastructure, with several public comment periods planned for the summer.