Minneapolis City Council to Vote on Data Center Moratorium
The Minneapolis City Council is scheduled to vote on a one-year data center moratorium on May 21, after a recent procedural motion to return the ordinance to its authors failed eight to five. If approved, the moratorium would immediately pause permitting and zoning approvals for new or expanded data centers for one year while the city develops new standards. This local effort parallels a statewide moratorium being considered in Minnesota, and follows a similar action by Inver Grove Heights.
The Minneapolis City Council is slated to cast a substantive vote on a proposed data center moratorium on May 21, following a procedural motion on April 24 that saw an attempt to kill the ordinance fail by an eight-to-five vote. The interim ordinance, co-authored by Council Members Aurin Chowdhury and Jason Chavez, would immediately impose a one-year halt on permitting and zoning approvals for new, re-established, or expanded data centers. During this period, city staff would develop comprehensive zoning, permitting, and development standards for the industry. This local initiative is occurring concurrently with consideration of Minnesota House File 4888, which proposes a statewide data center moratorium, and comes shortly after the Inver Grove Heights City Council approved its own one-year moratorium on May 11.
Council Member Michael Rainville has publicly opposed the moratorium, arguing that Minneapolis' northern climate reduces water usage for cooling, that data centers could utilize existing electrical capacity in downtown areas, and that such projects create well-paying union jobs. Rainville and the Council's moderate faction suggest data centers could help replace lost commercial property tax revenue in downtown Minneapolis due to remote work. However, Council Member Robin Wonsley points to alternative revenue streams, and Council Member Chavez highlights the potential environmental impact on justice neighborhoods like East Phillips, citing federal policies that have directed tech firms to contaminated sites near municipal water supplies.
The outcome of the May 21 vote is highly anticipated, with Council Vice President Jamal Osman and Council Member Jamison Whiting identified as key swing votes. Their positions will determine whether the eight-to-five alignment from the procedural vote holds. Should the moratorium pass, Minneapolis would join other cities like Seattle, Denver, and localities in New York that are also considering or enacting similar pauses or restrictions on data center development.