Minneapolis weighs new data center regulations, angering many residents

Minneapolis weighs new data center regulations, angering many residents

News ClipMinnPost·Minneapolis, Hennepin County, MN·10/15/2026

Minneapolis planning commissioners advanced proposed rules that would restrict data centers to two downtown zoning districts and limit their size, placement and noise. Residents pushed for stricter regulations or a ban, while the City Council’s six-month moratorium on new data centers is set to expire Nov. 21 unless extended.

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Gov: Minneapolis City Planning Commission, Minneapolis City Council, Minneapolis Department of Community Planning and Economic Development, Minneapolis Business, Housing and Zoning Committee, Xcel Energy, Minneapolis Public Schools

The Minneapolis City Planning Commission advanced regulations that would limit new data centers to two downtown zoning districts, cap their server space at 50,000 square feet and require case-by-case review. The proposed rules also include restrictions on building occupancy, floor placement and noise, along with disclosures of anticipated water and electricity use.

The action followed a six-month City Council moratorium on new data center development, which is scheduled to expire Nov. 21. Dozens of residents testified in favor of stronger restrictions or a complete ban, citing noise, environmental, water and electricity concerns; more than 1,600 public comments have been submitted since the moratorium began.

City officials said data centers could help fill vacant downtown space and generate tax revenue amid a projected budget shortfall. Xcel Energy representative Suzanne Murphy said the utility could reliably serve downtown data centers, while CPED manager Jason Wittenberg said Minneapolis has sufficient water capacity. The proposals move next to the Minneapolis Business, Housing and Zoning Committee and then the City Council.