Minneapolis Mayor Jacob Frey says data centers should be regulated and not serve as sole use of a property

Minneapolis Mayor Jacob Frey says data centers should be regulated and not serve as sole use of a property

News ClipCBS News·Minneapolis, Hennepin County, MN·8/22/2026

Minneapolis leaders are debating new regulations for data centers after enacting a five-month moratorium on new developments. Mayor Jacob Frey is advocating for multi-use properties rather than data centers serving as the sole use of a site. The City Council is set to vote on proposed regulations in November following a public hearing.

moratoriumzoningenvironmentalelectricitygovernmentopposition
Gov: Minneapolis Mayor's Office, Minneapolis City Council, Minneapolis City Planning Department

Minneapolis leaders are actively discussing the role of data centers within the city, following the City Council's approval of a five-month moratorium on new data center developments. This pause, which does not apply to smaller downtown data centers under 350,000 square feet, was implemented to allow city staff to study regulations and address concerns regarding environmental impact, energy use, and public safety.

Mayor Jacob Frey emphasized the need for data centers to be regulated to ensure community livability, health, and safety, while also leveraging them to generate tax revenue. He stressed that data center buildings should not be the sole use of a property, but rather integrated into multi-use spaces that offer community benefits like restaurants or event venues. This approach aims to address the city's multimillion-dollar budget shortfall and declining tax base.

Legacy Investing, a Virginia-based company, is involved in a significant project to convert the former Star Tribune printing plant into a data center. However, residents near the site expressed confusion and dissatisfaction after a recent community meeting with the developers.

Proposed regulations, presented to a Minneapolis City Council committee, include new zoning requirements, setback rules, and noise and landscaping standards, all aimed at integrating data centers into multi-use properties. The City Council is scheduled to vote on these regulations in November, with a public hearing planned for mid-October.