Minnesota

Data center activity in Minnesota

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Regulatory Environment Score
D
-19 pts

Minnesota has one of the most challenging regulatory environments in the country, characterized by pervasive moratorium adoption, unfavorable zoning outcomes, and legal friction. At least 19 moratoriums have been enacted with 4 rejected, and zoning outcomes are sharply negative with only 3 approvals against 9 denials, one of the worst zoning ratios of any state. At least 2 projects have been blocked and only 1 approved despite opposition, while at least 4 lawsuits add further uncertainty. Despite these challenges, at least 31 companies remain active, a strong count that reflects the Twin Cities' strategic data center market position. Compared to neighboring Wisconsin and Iowa, where zoning outcomes are less severely negative, Minnesota stands out as the most difficult regulatory environment in the Upper Midwest.

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Development of data center in Faribault slowed by Minnesota Court of Appeals ruling
News ClipCBS News·Faribault, Rice County, MN

Development of data center in Faribault slowed by Minnesota Court of Appeals ruling

The Minnesota Court of Appeals has ruled against the city of Faribault and Archer Datacenters, slowing the development of a proposed 500,000 square foot data center. The court sided with the Minnesota Center for Environmental Advocacy, which argued that residents lacked sufficient information regarding environmental impacts. The ruling requires more definitive information for the city to make a final decision, delaying the project.

6/9/2026
News ClipMinnesota Lawyer·Faribault, Rice County, MN

Court of Appeals: Faribault data center review inadequate$

The Minnesota Court of Appeals has ruled that the review process for a data center project in Faribault was inadequate. This legal decision indicates a flaw in the approval or assessment procedure for the development. The ruling may impact the future of the data center project.

6/9/2026
Next step in Pine Island data center lawsuit set for June 18
News ClipPost Bulletin·Pine Island, Goodhue County, MN

Next step in Pine Island data center lawsuit set for June 18

A Goodhue County District Court hearing is scheduled for June 18 to determine the next steps for Pine Island's proposed data center project, Project Skyway. The Minnesota Center for Environmental Advocacy (MCEA) has sued, arguing that the conducted environmental review (AUAR) is insufficient and a more stringent review is needed. The outcome will decide if developer Ryan Companies and the city can proceed with construction plans for the Google data center.

6/8/2026
Appeals court rules against Faribault data center; says city needs extensive environmental study
News ClipMPR News·Faribault, Rice County, MN

Appeals court rules against Faribault data center; says city needs extensive environmental study

An appeals court has ruled against the City of Faribault, stating it must conduct an extensive environmental study for a proposed data center project. This decision overturns the city's earlier determination that such a review was not necessary and follows an appeal by the Minnesota Center for Environmental Advocacy.

6/8/2026
Ecolab Bets Big on Data Centers
News ClipTwin Cities Business·St. Paul, Ramsey County, MN

Ecolab Bets Big on Data Centers

Ecolab is making significant investments in data center technology, acquiring CoolIT for liquid cooling and Ovivo's electronics business for ultrapure water for chip manufacturing. The St. Paul-based company aims to address the substantial water and electricity demands of AI and data centers through advanced recycling and cooling solutions. CEO Christophe Beck believes Minnesota can become a leader in sustainable data center operations due to these technologies and renewable energy from Xcel Energy.

6/8/2026
Q&A: MCEA’s Kathryn Hoffman on data center review process
News ClipFinance & Commerce·MN

Q&A: MCEA’s Kathryn Hoffman on data center review process

The Minnesota Center for Environmental Advocacy (MCEA) is calling for stronger environmental review processes, greater transparency, and better oversight for proposed hyperscale data centers in Minnesota. MCEA has filed lawsuits against four Minnesota cities concerning data center projects. Several cities in Minnesota, including Eagan, Inver Grove Heights, Rosemount, and Minneapolis, have already enacted moratoriums on new data center developments.

6/5/2026
Zumbro River project among new Google water stewardship programs
News ClipKTTC·Zumbrota, Goodhue County, MN

Zumbro River project among new Google water stewardship programs

Google is launching new water stewardship projects, including one in Zumbrota, Minnesota, to address criticisms regarding the water usage of its AI data centers. The company aims to replenish more water than it consumes by 2030, investing around $17 million in initiatives like restoring a floodplain forest along the Zumbro River.

6/5/2026
Notable construction projects around the region
News ClipGrand Forks Herald·Rosemount, Dakota County, MN

Notable construction projects around the region

The commercial construction sector in Minnesota is experiencing significant growth, largely driven by data center development. Meta is continuing its investment in data centers near Rosemount, contributing to this trend.

6/5/2026
Le Sueur County data center moratorium buys time to create new policies to regulate industry
News Clip2:04KEYC News Now·Le Sueur County, MN

Le Sueur County data center moratorium buys time to create new policies to regulate industry

Le Sueur County, Minnesota, has enacted a 12-month moratorium on data center development in its townships and unincorporated communities. The county board approved the temporary pause to allow time to research and develop new policies and ordinances to regulate the industry. No specific data center projects are currently proposed in the county.

6/5/2026
Pine Island mayor releases statement on data center ruling
News Clip0:39KTTC·Pine Island, Goodhue County, MN

Pine Island mayor releases statement on data center ruling

Pine Island's mayor, David Friese, commented on a judge's decision to temporarily halt construction of a data center. The mayor stated that this pause provides the city an opportunity to discuss the project's next steps, and he believes the ruling does not currently have a major impact on the city.

6/4/2026
Cambridge seeks more data regarding controversial facilities
News Clipisanti-chisagocountystar.com·Cambridge, Isanti County, MN

Cambridge seeks more data regarding controversial facilities

The city of Cambridge, Minnesota, is proactively gathering information on data centers, including zoning, water usage, and energy demands, even though no formal proposals have been submitted. Mayor Jim Godfrey suggested the council explore a moratorium on such facilities to ensure the city is prepared. City staff will research the matter and present findings to the council in the coming months.

6/4/2026