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MINNEAPOLIMEDIA NEWS | Minneapolis Advances Data Center Restrictions as Residents Challenge Energy Demand, Water Use and the Future of Downtown Development
With a temporary moratorium approaching expiration, the City Council faces a November 12 vote on regulations that would limit where data centers can operate and how much space their computing equipment can occupy.
MINNEAPOLIS, MN (November 10, 2026).
Minneapolis is moving toward its first specific zoning regulations for data centers as city officials confront growing public opposition to facilities that consume substantial electricity and water while offering developers another potential use for vacant commercial buildings.
A City Council committee advanced proposed regulations Monday, November 9, setting up a full council vote scheduled for Thursday, November 12.
The proposal would permit data centers in existing buildings within two downtown zoning districts while limiting the space devoted to servers and related computing equipment to 150,000 square feet.
The debate comes as Minneapolis approaches the November 21 expiration of a six-month moratorium on new data centers.
If city officials fail to adopt new regulations or extend the moratorium, additional facilities could continue to qualify for permits under existing zoning rules.
The decision has implications for neighborhoods, electricity customers, water resources, commercial property owners and the city's long-term development strategy.
Eight Existing Facilities, Limited Specific Regulation
Minneapolis already has eight data centers.
Yet the city's zoning code does not explicitly establish a separate regulatory category for them.
Under existing rules, data centers can generally be permitted in 10 of the city's 15 primary zoning districts without specific limits on their size.
That arrangement has become increasingly controversial as demand for computing capacity grows alongside artificial intelligence and cloud-based services.
Data centers house servers, networking equipment and supporting infrastructure. Their operations require continuous electricity and systems capable of controlling equipment temperatures.
The scale of those requirements varies substantially by facility, making it important to distinguish a smaller urban installation from a massive industrial computing campus.
Minneapolis officials are attempting to establish standards before additional development proposals advance.
A Proposal Focused on Downtown Buildings
The ordinance recommended Monday would restrict data centers to certain existing buildings in two downtown zoning districts.
It would also impose a 150,000-square-foot limit on white space, the area occupied by computing equipment and servers.
That distinction matters because a building's total square footage can include offices, corridors, mechanical equipment and other areas not used directly for computing.
Limiting white space is one way to regulate the scale of an operation through land-use authority.
The proposal would narrow the range of locations where data centers could be developed, rather than permitting them broadly across the city.
Supporters of tighter restrictions argue that facilities should not be allowed to expand without meaningful examination of their effects on surrounding neighborhoods and public infrastructure.
Others contend that data centers could help restore activity and property value to underused downtown commercial buildings.
Public Opposition Has Grown
The proposal follows months of public debate.
Approximately 50 people testified during an October Planning Commission hearing, while more than 1,600 public comments have been submitted concerning data center regulations.
Reporting indicates that the overwhelming majority of those comments opposed additional data centers.
Some residents have called for a complete ban.
A council committee previously deadlocked 6–6 on such a proposal, demonstrating that elected officials remain divided over how restrictive the city's approach should be.
The debate has intensified following opposition to a proposed data center at the former Minnesota Star Tribune printing facility.
For opponents, the central concern is whether the economic benefits of new development justify the demands placed on public resources.
Water and Electricity Are Central Questions
Data centers can require substantial electricity to power servers and supporting systems.
Some also consume significant water for cooling, depending on the technology used.
Minneapolis planning officials have argued that the city's existing water infrastructure can accommodate facilities of the scale contemplated under the proposed ordinance.
The city has the capacity to draw approximately 100 million gallons of water per day from the Mississippi River and currently uses roughly 55 million gallons daily, according to figures cited during the debate.
Those numbers describe system capacity, not the water consumption of any particular proposed facility.
One existing data center associated with Sleep Number has reportedly averaged approximately 3 million gallons of water per month.
That example illustrates why residents want project-specific information rather than general assurances about capacity.
Questions also remain about electricity demand, infrastructure upgrades and whether increased consumption could affect costs borne by other customers.
Those effects depend on utility regulation, project design and the financial arrangements governing new infrastructure.
The Limits of City Authority
Minnesota municipalities can regulate aspects of data center development through zoning, including location, physical size and certain noise impacts.
However, state law limits municipal authority over matters such as electrical megawatt capacity, air emissions and heating and cooling systems.
That division of responsibility complicates the debate.
Residents may expect the city to address environmental concerns that fall partly under state or other regulatory authority.
The council must therefore determine what protections it can legally establish through zoning while identifying issues that require action from other agencies.
November 12 Vote Could Shape Future Development
The full City Council is expected to consider the proposal Thursday.
Mayor Jacob Frey's position on the final language has not been conclusively established in the reporting reviewed.
Council members could approve the proposed restrictions, amend them or pursue a different approach.
If the city does not establish new rules before the moratorium expires November 21, existing zoning provisions could again govern additional applications unless the moratorium is extended.
Council Member Aisha Chughtai has indicated that another moratorium may be considered.
The timing creates pressure for a decision, but it does not establish what the council will ultimately approve.
THE TAKEAWAY
Minneapolis is approaching a consequential decision about how data centers should fit into the city's future.
A council committee has advanced regulations that would limit facilities to certain existing downtown buildings and restrict the amount of space devoted to computing equipment.
The proposal responds to growing concerns about electricity demand, water consumption, neighborhood impacts and the adequacy of existing zoning rules.
The November 12 vote will help determine whether Minneapolis adopts a more restrictive framework before its current moratorium expires November 21.
The broader question is whether the city can attract productive investment while protecting residents and public infrastructure from costs that are not fully understood at the time development is approved.
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