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MINNEAPOLIMEDIA NEWS | Minneapolis Planning Commission Advances Tougher Data Center Rules as November Moratorium Deadline Approaches
Commissioners moved to sharply reduce the permitted size of new data centers and add zoning scrutiny, but residents remain concerned about electricity demand, water consumption and whether the proposed safeguards go far enough.
MINNEAPOLIS, MN (October 14, 2026). Minneapolis is moving closer to adopting its first zoning regulations specifically designed for modern data centers after the City Planning Commission advanced a proposal Tuesday evening that would restrict where the facilities could operate, limit their size and impose additional conditions intended to protect surrounding neighborhoods.
The October 13 action comes as the city approaches a November 21 deadline, when a six-month moratorium on certain new data center developments is scheduled to expire.
The proposal represents a significant shift from the city's existing zoning framework, which does not separately classify modern data centers and instead generally treats them as communication exchanges.
That older classification has allowed such facilities to be considered in numerous zoning districts without standards specifically addressing their electricity consumption, cooling systems, backup generators and other operational characteristics.
The proposed ordinance would create a distinct data center classification, substantially narrow the areas where new facilities could operate and require developers to disclose information about expected utility demands.
However, the Planning Commission's decision did not settle the debate. Residents who addressed commissioners argued that the restrictions remain insufficient and that Minneapolis should take a more cautious approach before allowing additional data center development.
Commissioners Reduce Proposed Server-Space Limit
One of the most consequential changes Tuesday involved the amount of space a data center could devote to computer servers and related equipment.
City staff originally proposed allowing up to 175,000 square feet of what the industry calls white space, the interior area containing servers and associated technology.
Planning Commissioner Jason Garcia introduced an amendment reducing that maximum to 50,000 square feet.
The revised ceiling represents a reduction of approximately 71 percent from the original proposal.
The distinction between white space and total building area is important. A data center's overall footprint may also include cooling systems, electrical infrastructure, circulation space and other supporting facilities.
A 50,000-square-foot white-space limit therefore does not necessarily mean the entire building must be smaller than 50,000 square feet.
The change addresses one of the concerns raised during public discussions: that the original limit could accommodate facilities substantially larger than residents expected to see in downtown Minneapolis.
Some speakers nevertheless urged commissioners to impose an even lower ceiling of 25,000 square feet.
Additional Zoning Review Introduced
Planning Commissioner Angela Conley also advanced an amendment involving overlay zoning, which would introduce another layer of land-use review and restrictions.
Overlay zoning operates alongside an underlying zoning district and can establish additional standards for particular uses or geographic areas.
The amendment is notable because city staff had previously considered, then withdrawn, an overlay-district approach during development of the proposal.
The city's September public materials specifically stated that an earlier overlay concept would not be included in the staff recommendations moving forward.
Tuesday's commission action therefore represents a significant departure from that preliminary position.
The precise effect of the revised overlay provision will depend on the ordinance language ultimately considered by the City Council.
Data Centers Would Be Restricted to Two Downtown Districts
Under the proposed framework, new data centers would be allowed through a conditional use permit process only in downtown zoning districts DT1 and DT2.
According to the city staff analysis described during the hearing, those districts account for less than 4 percent of Minneapolis land area.
That would sharply narrow the geographic eligibility of data centers compared with the current communication-exchange classification.
The conditional use permit process would require a public hearing before the Planning Commission. Applicants would have to demonstrate compliance with applicable zoning standards, and commission decisions could be appealed to the City Council.
The proposal would also prohibit constructing an entirely new building solely for a data center. Instead, new facilities would generally have to occupy existing buildings.
The restrictions are intended partly to encourage reuse of vacant commercial properties downtown.
City Code Development Manager Jason Wittenberg told commissioners that approximately 8 million square feet of downtown space, representing about 30 percent of the inventory referenced in his presentation, was vacant.
The potential reuse of underoccupied buildings is one argument city officials have advanced in favor of allowing carefully regulated data centers downtown.
Whether those conversions would produce sufficient economic benefits to offset utility and infrastructure demands remains a subject of debate.
Building Design Rules Aim to Reduce Neighborhood Impacts
The proposal contains several requirements addressing the location of server rooms and supporting equipment.
Server rooms would have to be situated at least 20 feet from exterior building walls and at least 100 feet from the exterior walls of neighboring residential dwelling units or rooming units.
In the downtown districts, server rooms and mechanical equipment would not be permitted on the first or second floors.
Mechanical equipment would generally have to be located inside the building or on the roof, rather than placed openly around the property.
Those provisions are intended to address concerns about noise, building compatibility and the effect of industrial-style equipment on streets and nearby residential properties.
Data center applicants would also be required to disclose expected electricity and water use, provide information about backup generators and submit plans for reducing noise.
Developers would need written evidence of coordination with their electricity provider.
The proposed disclosure requirements, however, are not the same as enforceable limits on the amount of electricity or water a facility may consume.
That distinction is central to the objections raised by residents.
Residents Question Whether the Rules Go Far Enough
Public testimony demonstrated substantial concern about allowing additional data centers in Minneapolis.
According to reporting from Tuesday's hearing, roughly 40 people addressed commissioners, with most expressing opposition to large-scale data centers in the city.
Speakers raised questions about electricity demand, water use, neighborhood impacts and whether public resources should be directed toward infrastructure serving private technology operations.
Some urged commissioners to extend the moratorium rather than adopt the proposed framework on the existing schedule.
Others supported stricter size limits and stronger public oversight of proposed facilities.
The objections reflect a broader concern about the rapid expansion of data infrastructure associated with cloud computing and artificial intelligence.
Modern data centers can require substantial electrical capacity, although their actual consumption varies considerably according to size, equipment, cooling technology and operating conditions.
Water requirements also differ among facilities. Some cooling systems use significant quantities of water, while others rely on alternative technologies.
Those differences make project-specific disclosures particularly important when evaluating proposals.
City Officials Cite Limits on Local Regulatory Authority
Minneapolis officials have acknowledged that zoning regulations alone cannot address every concern raised by data centers.
Minnesota's statewide building code limits the ability of individual cities to establish separate requirements for certain building components and systems.
That means Minneapolis may be able to regulate where a data center operates, its relationship to surrounding properties and some aspects of land use without necessarily having authority to impose every equipment or building-system requirement sought by residents.
The city's Health Department is also developing regulations addressing stationary generators, which are relevant because data centers often require backup electrical power.
These overlapping responsibilities help explain why the proposed ordinance focuses heavily on land use, building placement, disclosure and review procedures.
They also raise a practical question for the City Council: whether the combined zoning, environmental and utility oversight systems provide sufficient safeguards for future projects.
How Minneapolis Reached This Point
The City Council adopted a temporary moratorium in May to pause certain data center proposals while officials studied potential regulations.
The pause took effect May 21 and is scheduled to expire November 21.
During the summer, city staff examined how other jurisdictions regulate data centers, evaluated their potential effects on the local economy and infrastructure, and developed preliminary zoning recommendations.
A public comment period began in August, followed by the October 13 Planning Commission hearing.
Earlier city proposals would have allowed data centers in the two downtown districts with conditional use permits and a 175,000-square-foot white-space limit.
Tuesday's amendments significantly changed that framework by reducing the size limit and introducing additional zoning scrutiny.
The changes now require City Council consideration before becoming law.
Next Steps: November Hearings and Final Council Action
The proposal is expected to proceed to the City Council's Business, Housing and Zoning Committee in early November.
The committee's consideration is scheduled for November 6, according to the hearing account, while the full City Council is expected to consider the ordinance November 12.
Those dates place the council's anticipated decision only days before the November 21 moratorium expiration.
City officials must determine whether to adopt the amended proposal, revise it further or consider other action before the temporary restrictions lapse.
The Planning Commission's approval is a recommendation in the legislative process. It does not, by itself, make the proposed zoning changes enforceable city law.
Residents seeking to follow the issue can review the city's zoning materials and submit comments through the official data center regulations page.
Public Information and City Contacts
City of Minneapolis Data Center Regulations:
https://www.minneapolismn.gov/business-services/planning-zoning/amendments/proposed-adopted/data-centers/
Planning and Zoning, Community Planning and Economic Development
Public Service Building
505 Fourth Avenue South, Room 320
Minneapolis, MN 55415
Phone: 612-673-3000
Email: minneapolis311@minneapolismn.gov
City Council meetings and legislative records:
https://lims.minneapolismn.gov/
Residents should check the official meeting calendar for the final committee date, agenda and instructions for public participation.
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