Minnesota Communities Debate Data Center Economic Benefits and Impacts
Community opposition to data centers is rapidly increasing across Minnesota, driven by concerns over environmental impact, utility costs, and the perceived burden of large-scale facilities. Despite these concerns, developers like Meta and Google are pursuing projects, with Meta's Rosemount facility being the state's first hyperscale data center. Several Minnesota cities, including Rosemount and Minneapolis, have enacted temporary moratoriums or halted approvals while updating zoning rules to address these developments.
Community opposition to data centers is on the rise across Minnesota, fueled by concerns over their impact on electric bills, home values, water usage, and local infrastructure. Despite this, former President Donald Trump has publicly advocated for data centers, citing their economic benefits, though a recent Economist/YouGov poll indicates widespread public disapproval, even among Republicans.
Meta is bringing Minnesota's first hyperscale data center online in Rosemount, a project estimated to generate $20 million in property taxes over 20 years for the city and support 148 permanent jobs. However, this development, code-named "Project Bigfoot" and shrouded in secrecy, has led Rosemount, Eagan, and Inver Grove Heights to pass temporary moratoriums on data center development. Google is also seeking permission to build two data centers near Rochester and Duluth.
Minneapolis has also temporarily halted data center approvals while updating its zoning rules. City officials are exploring the potential for smaller urban data centers, retrofitting existing commercial buildings, which are seen as less impactful on utilities than hyperscale campuses. These urban facilities are noted to contribute significantly to city revenue through franchise fees and property tax increases, with the Minneapolis water utility having ample capacity to support such operations. However, a recent neighborhood meeting for a proposed data center in a former Star Tribune printing plant in Minneapolis was met with a hostile reaction, indicating ongoing local opposition.