Minneapolis Council Advances Data Center Ordinance Framework

Minneapolis leaders advanced a data center ordinance on Monday, moving the proposal forward as the city’s moratorium is set to end in two weeks.

The Minneapolis City Council voted to advance the framework following more than 1,600 public comments, sending the proposal to a full council vote later this week.

Under the proposed rules, future data centers would have to be located downtown, measure 150,000 square feet or smaller, and occupy existing office space only.

Additional restrictions mandate that data centers cannot function as the primary use of a building or occupy the first two floors.

Minneapolis City Council advances data center plan, lays out rules

Supporters argue these projects offer a necessary financial boost as downtown property values slump and the local tax base declines.

“Will small-scale data centers be a cure-all for revenue generation?” Minneapolis City Council Member Elizabeth Shaffer asked. “I’ve already said no. Is it a step in the right direction for some revenue generation and property tax relief? Yes.”

Councilmember Aurin Chowdhury pushed for an all-out ban during Monday’s meeting, raising concerns about potential environmental effects and calling for stronger limits, though that effort ultimately failed.

“What I hear from my constituents is, ‘Don’t sell us out to big tech, don’t sell it out to this industry that oftentimes tries to go around the rules and find loopholes,’” Chowdhury said.

Monday. Chowdhury

An additional proposal to create an overlay district requiring council approval for future data center projects also failed to gain enough votes.

Mayor Jacob Frey’s office confirmed he does not support the overlay district requirement, but he does support the regulatory framework advancing to the full council later this week.