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Minneapolis Council Approves Temporary Pause on Large Data Centers

The ordinance triggers a city study of water, power, noise, equity impacts during the pause.

Overview

  • The Minneapolis City Council voted Thursday for a five-month moratorium that bars zoning, building, construction and demolition permits for new or expanded data centers while exempting projects under 350,000 square feet in a defined downtown area.
  • The measure directs the Department of Community Planning and Economic Development to study citywide effects on water use, electricity demand, continuous cooling noise and environmental justice with a scheduled review on Nov. 21, 2026 or when the study is finished.
  • The ordinance has been sent to Mayor Jacob Frey for his decision after council approval.
  • Cleveland’s council utilities committee separately advanced a three-month pause on standalone data centers and set a full council vote for July 15, reflecting a broader wave of short local freezes as cities craft new rules.
  • Developers and business groups warn the pauses may deter investment and cost jobs — one investor group says about $1 billion in downtown projects were ready to move forward — while supporters argue the study is needed to protect neighborhoods that have faced disproportionate environmental harms.