Activists, city planners dissatisfied with Minneapolis City Council's vote on data center regulations

The Minneapolis City Council’s recent vote on data center regulations, a decision years in the making, has left stakeholders on both sides feeling less than satisfied. Just hours after the 7-6 vote Thursday, debates continue over whether the new rules strike the right balance between economic development and environmental concerns—a debate that will now land on the desk of Mayor Jacob Frey for his approval.

What Happened

The Minneapolis City Council narrowly approved a data center ordinance Thursday, falling short of a full ban but establishing key limitations. The ordinance, which still requires Mayor Frey’s approval, restricts data centers to two designated downtown zones, mandates they occupy existing buildings, and necessitates full City Council approval for operation. The vote follows a six-month moratorium on new data center construction, set to expire on November 21. The ordinance was approved with a vote of 7-6, with Council members Elliott Payne, Aisha Chughtai, Robin Wonsley, Soren Stevenson, Jason Chavez, Jamison Whiting, and Aurin Chowdhury voting in favor and Council members Jamal Osman, Michael Rainville, LaTrisha Vetaw, Pearll Warren, Elizabeth Shaffer, and Linea Palmisano opposed.

According to city staff, downtown Minneapolis currently houses eight data centers serving tech companies, with many more supporting existing businesses throughout the city. Xcel Energy has reportedly indicated interest in up to eight additional data center projects downtown. The approved ordinance mandates a maximum size of 150,000 square feet when utilizing renewable energy sources, or up to 50,000 square feet for non-renewable energy operations. Furthermore, data centers cannot serve as the primary use of a building and are prohibited from occupying the first or second floors.

The newly approved regulations also impose stringent requirements, including mandatory disclosure of energy, water, and generator usage. A “sound attenuation plan” is also required to mitigate noise pollution. Perhaps most notably, the ordinance mandates a decommissioning plan for data centers that cease operation, ensuring responsible closure and environmental remediation. Data centers exceeding 50,000 square feet must participate in a program with Xcel Energy, contributing to the development of renewable energy through the purchase of renewable energy credits, as Council member Aurin Chowdhury explained. The regulations also require new data centers to be approved by the City Council and are not permitted in new construction, only in existing buildings.

Community Reaction

The outcome has drawn mixed reactions from community members and industry representatives. Kalani Matus, representing the Climate Justice Committee (CJC), expressed skepticism about the ordinance's effectiveness, citing a history of regulatory failures. “There's a long history of rules and regulations not being followed up on,” Matus said. “Certainly with the Minnesota Pollution Control Agency has found themselves at odds with the CJC over, you know, problem polluters that they've failed to regulate until enough people make a fuss about it.”

Conversely, Dan McConell of the Minneapolis Building and Construction Trades Council emphasized the potential economic benefits of data centers. “We've got a city that's got 9 million vacant square feet of office space, right? We're looking at adaptive reuse as probably the only way out of that,” McConell stated. He further argued that the regulations could help alleviate the city’s tax burden, adding, “I’m a taxpayer in the city of Minneapolis. I think that we're looking at a double-digit tax increase. And we've seen that for a couple of years. And unless we're involved for investment in our city and create an environment where people want to invest in our city.”

Council Vote Breakdown

The final vote on the ordinance was closely divided, reflecting the contentious nature of the debate. Council members Elliott Payne (Ward 1), Aisha Chughtai (Ward 10), Robin Wonsley (Ward 2), Soren Stevenson (Ward 8), Jason Chavez (Ward 9), Jamison Whiting (Ward 11) and Aurin Chowdhury (Ward 12) voted in favor. Council members Jamal Osman (Ward 6), Michael Rainville (Ward 3), LaTrisha Vetaw (Ward 4), Pearll Warren (Ward 5), Elizabeth Shaffer (Ward 7) and Linea Palmisano (Ward 13) opposed the measure. Council Member Soren Stevenson pledged to work “to preserve the tighter size limit, the renewable-energy requirement, and public review in the final ordinance.”

Key Dates

• November 21: Data center moratorium expiration date
• Thursday: Minneapolis City Council vote on data center ordinance (7-6)

What's Next

The ordinance now moves to Mayor Jacob Frey for review and potential approval or veto. If approved, the regulations will take effect, shaping the future of data center development in Minneapolis. The expiration of the moratorium on November 21 looms, creating a sense of urgency as stakeholders await Frey’s decision. Council Member Soren Stevenson has indicated that if a full ban fails again, proposals for overlay zoning will be revisited to allow for case-by-case public hearings. Council Member Elizabeth Shaffer stated, “Will small-scale data centers be a cure-all for revenue generation? I’ve already said no.”

Marcus's Take

The Minneapolis City Council’s compromise on data center regulations highlights a familiar tension: the desire for economic growth versus the responsibility to protect our environment and community. While the new rules offer some safeguards—limiting size, requiring renewable energy contributions, and mandating decommissioning plans—the underlying question remains whether these measures will be sufficient to mitigate the potential negative impacts of a rapidly expanding data center industry. It's a reminder that responsible development isn't just about attracting investment; it's about ensuring that growth benefits everyone, especially those who call this city home.

The close vote underscores the deep divisions within the community, and the potential for future conflict. Families in Minneapolis deserve a city government that prioritizes their long-term well-being, not just short-term economic gains. A thriving economy is essential, but it should not come at the expense of our environment or the stability of our neighborhoods. We need leaders who are willing to stand up for what’s right, even when it’s unpopular, and who understand that true prosperity is built on a foundation of strong values and committed community.

The next few weeks will be crucial. Mayor Frey’s decision will set the tone for future development, and residents should remain engaged in the process, holding their elected officials accountable and advocating for policies that promote both economic opportunity and responsible stewardship of our city’s resources.

Resources

For more information on Minneapolis City Council meetings and ordinances, visit the City of Minneapolis website. Residents interested in learning more about data centers and their environmental impact can find information on the Environmental Protection Agency's website. The Xcel Energy website provides details on renewable energy programs and initiatives.

The Minneapolis Building and Construction Trades Council can be reached at Minneapolis Building and Construction Trades Council. The Climate Justice Committee’s contact information is available through their Climate Justice Committee. For more information on the Minneapolis City Council, visit MinnPost - Minneapolis City Council Updates.

The debate over data centers in Minneapolis underscores the challenges of balancing economic development with environmental stewardship. It's a conversation that demands careful consideration and a commitment to finding solutions that benefit all members of our community, ensuring a brighter future for families and generations to come.