Minneapolis City Council approves 5-month pause on data center development

The Minneapolis City Council has enacted a five-month moratorium on new data center development, with an exception for smaller facilities under 350,000 square feet located downtown. This temporary pause aims to provide city staff with time to research regulations and address growing concerns related to environmental impact, energy consumption, and public safety.

The council's decision follows significant community opposition to data center projects throughout Minnesota. Recent examples include the Elk River planning commission recommending against a data center proposal, and the Inver Grove Heights city council delaying a final vote on a proposed facility after a contentious public meeting. In Minneapolis, Councilmember Soren Stevenson noted strong constituent opposition, while Councilmember Aurin Chowdhury highlighted the disproportionate negative impacts of the industry on communities of color and those affected by environmental injustice.

While labor groups voiced support for the construction jobs data centers could create, opponents of the pause, such as Councilmember Linea Palmisano, expressed concerns that it could deter future economic investment and send a negative message to businesses considering Minneapolis. The approved moratorium now proceeds to Mayor Jacob Frey, who is expected to review the ordinance in the coming days before deciding whether to sign it.