29° and Clear
MINNEAPOLIMEDIA NEWS | Minneapolis Weighs Downtown-Only Data Center Rules as Moratorium Deadline Approaches and Residents Demand Stronger Protections
The City Council's proposed framework would restrict new facilities to existing downtown buildings, limit server space and impose renewable-energy requirements on larger operations. The final November 12 vote requires confirmation before the ordinance can be reported as adopted.
MINNEAPOLIS, MN (November 13, 2026).
Minneapolis is approaching a consequential deadline in its effort to regulate data centers, with city officials considering restrictions intended to balance economic development against concerns about electricity consumption, environmental impacts and the future of downtown property.
The City Council was scheduled to take up a compromise ordinance Thursday, November 12, after a committee advanced the proposal earlier in the week.
The measure would restrict new data centers to existing downtown buildings, limit server space to 150,000 square feet and require larger facilities to participate in a renewable-energy program.
The city faces a November 21 deadline, when its temporary moratorium on most new data center development is scheduled to expire.
The available reporting reviewed for this article establishes the proposed regulations and the council's scheduled vote, but does not independently confirm the final November 12 disposition.
That distinction matters because proposed restrictions are not enforceable merely because a committee recommends them.
The Proposed Downtown Restrictions
The compromise framework would allow new data centers only within existing downtown buildings.
It would also require buildings containing data centers to retain other uses rather than become exclusively dedicated to computing operations.
The proposed 150,000-square-foot limit concerns server space, not necessarily the entire floor area of a building.
Facilities with more than 50,000 square feet of server space would be required to participate in a renewable-energy program.
These provisions represent a middle position among proposals considered by city officials.
City staff had recommended a 175,000-square-foot cap.
The Minneapolis Planning Commission proposed a stricter 50,000-square-foot limit and additional council review of individual projects.
The compromise emerged after disagreements about whether data centers should be permitted at all.
Public Opposition and Economic Arguments
Minneapolis received approximately 1,600 written public comments concerning the proposed regulations.
According to an MPR News analysis, most opposed data centers, while nearly half called for a complete ban.
Opponents have raised concerns about electricity demand, potential utility costs, noise, environmental effects and the limited number of permanent jobs associated with some facilities.
Supporters argue that data centers can generate construction employment, tax revenue and productive use of otherwise vacant commercial property.
Labor organizations, including the Minnesota AFL-CIO and Minneapolis Building and Construction Trades Council, advocated more flexible restrictions.
Council Member Elizabeth Shaffer emphasized the need for construction activity and the potential economic value of redeveloping unused space.
Council Member Soren Stevenson argued that downtown development should prioritize people and community activity rather than additional computing facilities.
The disagreement reflects different priorities for land use, economic development and environmental protection.
A Moratorium Nears Expiration
Minneapolis adopted a six-month moratorium on most new data centers while officials developed permanent regulations.
The temporary restrictions exempted certain downtown projects under 350,000 square feet.
Without replacement rules, data center proposals could again be evaluated under existing zoning provisions that allow such facilities in multiple districts.
That prospect has increased pressure on the council to establish a framework before November 21.
The city's challenge is to determine which projects should be permitted, what conditions should apply and how the public can evaluate their potential impacts.
The Mayor's Position
Mayor Jacob Frey has supported regulations that allow some data center development rather than imposing a complete prohibition.
His office indicated support for the compromise framework advanced by the council committee.
Council members also discussed the possibility of a mayoral veto if the final ordinance incorporated substantially stricter provisions.
The mayor's position matters because Minneapolis ordinances require sufficient council support to overcome a veto.
The final legislative outcome therefore depends not only on the council vote but also on whether the mayor signs or vetoes the measure.
What Still Requires Confirmation
Before this article can report the ordinance as enacted, the newsroom must establish the recorded November 12 vote, any amendments adopted and the mayor's subsequent action.
Those details determine the actual rules that would apply to future data center proposals.
Until then, the 150,000-square-foot cap and downtown-only restriction should be described as provisions of the proposed compromise, not as confirmed law.
THE TAKEAWAY
Minneapolis is considering significant restrictions on new data centers as its temporary moratorium approaches expiration on November 21.
The compromise proposal would limit facilities to existing downtown buildings, cap server space and impose renewable-energy requirements on larger operations.
The debate has exposed disagreements over economic development, electricity consumption, land use and public oversight.
The final council vote and mayoral action must be verified before the city can be said to have adopted the proposed rules.
STAY CONNECTED TO MINNEAPOLIMEDIA
Local stories matter. Subscribe free to MinneapoliMedia and receive independent news, community reporting and important updates from Minneapolis, the North Metro and communities across Minnesota.
SUBSCRIBE FREE: https://minneapolimedia.town.news/subscribe
MinneapoliMedia | Community. Culture. Civic Life
