The Minneapolis City Council has voted to halt the establishment, re-establishment, or expansion of data centers larger than 350,000 square feet, approving a six-month moratorium that will remain in effect until November.

The resolution passed 8-5 last Thursday, making Minneapolis the latest Minnesota city to move against large-scale data center development as opposition to the industry spreads across the state.

What the Moratorium Covers

The Minneapolis moratorium specifically targets data centers exceeding 350,000 square feet, equivalent to approximately 32,516 square meters.

It applies to new establishments, re-establishments, and expansions of such facilities within the city. The council had initially considered imposing a one-year moratorium, according to a report by the Star Tribune, but ultimately settled on the six-month timeframe.

During the moratorium period, the city is set to reform its zoning code and conduct a study on the potential impacts of data centers. Minneapolis is Minnesota's most populous city.

A Growing Pattern Across Minnesota

The Minneapolis vote is the latest in a series of similar actions taken by local governments across the state.

Earlier in May, the city of Inver Grove Heights, located southeast of Minneapolis, approved a one-year moratorium on data center construction.

Just last week, Wright County, located northwest of Minneapolis, passed a moratorium on applications to construct data centers.

The wave of local moratoria reflects a broader backlash against data center development that has been building across Minnesota, prompting authorities at multiple levels of government to pump the brakes on new projects.

Legal Challenge in Inver Grove Heights

The moratorium approved in Inver Grove Heights has already drawn a legal threat. QLevr, the developer behind a proposal to build a 5-megawatt, 55,000-square-foot data center in the city, has threatened legal action against the local government.

The company's argument centers on the timing of its application, claiming that it was filed prior to the moratorium taking effect.

The dispute in Inver Grove Heights illustrates the tensions that can arise when moratorium decisions intersect with development projects already in progress, and it may foreshadow similar conflicts in other jurisdictions as more cities and counties move to restrict data center construction.

State Legislators Push for Broader Restrictions

Beyond local actions, Minnesota state legislators have attempted to pass a statewide moratorium on data centers.

The proposed legislation, identified as HB4888 and SB4298, would prevent local governments from issuing permits for data centers until one calendar year after the Public Utility Commission submits a comprehensive report assessing various possible scenarios for data center development in Minnesota.

If passed, the bill would effectively shift the pace of data center permitting decisions to a state-level review process, tying the resumption of new permits to the completion of a formal commission assessment. The legislation has not yet been enacted.

Zoning Reform and Impact Study Ahead

With the moratorium now in place, Minneapolis officials are expected to use the six-month window to undertake both a zoning code revision and a formal study examining the potential impacts of large data centers on the city.

The combination of legislative pause and policy review mirrors approaches taken in other jurisdictions grappling with the rapid growth of data center infrastructure and its effects on local communities, power grids, and land use.

The scope and findings of that study, along with the outcome of the zoning reform process, will likely shape how Minneapolis approaches data center development once the moratorium expires in November.