Minneapolis City Council halts new data center developments until November
The Minneapolis City Council has enacted a moratorium on new data center developments until November to allow time to study their environmental impacts. This decision, approved by an 8-5 vote, aims to enable more conscientious planning, though some council members are concerned about potential reductions in tax revenue and business investment.
The Minneapolis City Council approved an 8-5 vote in May to halt new data center construction until November, with the moratorium taking effect in July. The decision was driven by the Council's need for more time to understand the potential environmental impacts of these facilities and to plan their development more conscientiously.
Celeste Robinson, policy aide to Council member Robin Wonsley, emphasized the importance of a thorough evaluation, suggesting the halt could be extended for a full 12 months of analysis. Robinson argued that while data centers are often touted as investments, there's no clear evidence they generate claimed economic benefits for communities, instead seeing corporations profit from local resources like land, water, and electricity.
Conversely, some Council members voiced concerns that the moratorium could lead to reduced tax revenue and deter businesses from investing in downtown Minneapolis. Council member Elizabeth Shaffer cited the data center at the Sleep Number headquarters as an example of positive financial impact, noting its valuation increased eightfold, helping to address the city's $50 million commercial property tax shortfall. Dan McConnell, President of the Minnesota Building and Construction Trades Council, acknowledged growing community concerns but suggested an "hysteria" around data centers, which have been present for decades. Robinson, however, maintained that the city has other avenues for revenue generation, such as taxing the wealthy, that do not rely on permitting large tech corporations to build data centers.