St. Cloud Weighs New Data Center Zoning Rules
St. Cloud's Planning Commission is set to hold a public hearing on proposed zoning amendments for data centers. The city aims to proactively establish clear rules for data center size, location, and environmental requirements before any development proposals are submitted. These regulations would categorize data centers and set specific permit and environmental study requirements.
The city of St. Cloud, Minnesota, is proactively addressing data center development by proposing new zoning amendments to its land use code. The city's Planning Commission is scheduled to hold a public hearing on Tuesday at 6 p.m. at City Hall to consider the draft rules, which aim to establish clear guidelines for data center locations, size, and environmental standards before any specific development proposals are submitted. Matt Glaesman, the city's community development director, emphasized this as a best practice, noting that current zoning is inadequate for modern server farms.
The proposed regulations classify data centers into two categories: enterprise facilities, capped at 10,000 square feet and 50 megawatts, which would be allowed by right in industrial and certain commercial districts; and hyper-scale facilities, which would require a conditional use permit and be restricted to the I3 Planned Industrial District. Hyper-scale projects would also need to be at least a quarter-mile from residential areas, connect to city utilities, and utilize EPA Tier 4 backup generators. All data center applications would necessitate extensive studies, including environmental impact, noise, and community impact assessments, along with commitments to water conservation and on-site solar.
This initiative by St. Cloud is part of a broader trend in Minnesota and other US cities. Minnesota state law enacted in 2025 introduced scrutiny for data centers consuming over 100 million gallons of water annually, subjecting them to multi-agency review. The law also adjusted tax exemptions and authorized the Minnesota Public Utilities Commission to create a "very large customer" tariff to manage infrastructure costs. Other Minnesota cities like Minneapolis have enacted moratoriums or specific zoning rules, while some like Hermantown and Pine Island have offered tax abatements. Power utility Xcel Energy is significantly investing in grid upgrades to support an anticipated surge in data center demand across the state.
While no hyper-scale developers have yet applied in St. Cloud, the city aims to have these ground rules in place. The Planning Commission's recommendation will eventually go to the St. Cloud City Council for further public hearings and a final vote, with options for postponement if more information is needed.