Minneapolis council delays decision on data-center moratorium
The Minneapolis City Council this week delayed a vote on a proposed moratorium on new data centers, saying it needs more study and wider public input before taking action.
Council Member Aurin Chowdhury introduced the local pause to allow a review of projected tax benefits, energy and water demands, and development agreements. Developers warned the delay could slow investments, while residents and environmental groups urged a pause to protect city power and water supplies.
The move follows a statewide surge after a June 2025 law offering sales-tax exemptions to large data centers. By late 2025, at least 11 sites were in development around the Twin Cities, including plans to convert downtown buildings. Early 2026 milestones â like Google's planned center near Rochester and the January sale of the former Sleep Number headquarters for conversion â intensified debate over jobs and resource strain. Data centers used about 4.4 percent of U.S. electricity in 2023. Consumption is projected to double by 2026 because of AI demand. Some proposed Minnesota centers would each use more energy than the whole city of Minneapolis.
State lawmakers are considering SF 4298, a bill to pause new data-center construction statewide while regulators study impacts. Legislators also proposed banning nondisclosure agreements with developers to boost transparency. Other U.S. cities have paused or blocked projects, and public debate is split between those urging economic growth and those warning of higher utility costs and environmental harm. With the council's delay, both developers and opponents say the city's next steps will shape whether Minneapolis becomes a major hub or a cautionary example.
Show source details & analysis
đ Relevant Data
The Minnesota Legislature is currently considering SF 4298, a bill that would establish a moratorium on the construction of new data centers in Minnesota until further regulations are developed. ([BillTrack50](https://www.billtrack50.com/billdetail/1986081)) ([BillTrack50](https://www.billtrack50.com/billdetail/1986081)) ([BillTrack50](https://www.billtrack50.com/billdetail/1986081)) ([BillTrack50](https://www.billtrack50.com/billdetail/1986081)) ([BillTrack50](https://www.billtrack50.com/billdetail/1986081)) ([BillTrack50](https://www.billtrack50.com/billdetail/1986081)) ([BillTrack50](https://www.billtrack50.com/billdetail/1986081)) ([BillTrack50](https://www.billtrack50.com/billdetail/1986081)) ([BillTrack50](https://www.billtrack50.com/billdetail/1986081)) ([BillTrack50](https://www.billtrack50.com/billdetail/1986081))
MN SF4298 â BillTrack50
Some proposed data centers in Minnesota would each use more energy than the entire city of Minneapolis. ([Minnesota House of Representatives](https://www.house.mn.gov/sessiondaily/Story/18838)) ([Minnesota House of Representatives](https://www.house.mn.gov/sessiondaily/Story/18838)) ([Minnesota House of Representatives](https://www.house.mn.gov/sessiondaily/Story/18838)) ([Minnesota House of Representatives](https://www.house.mn.gov/sessiondaily/Story/18838)) ([Minnesota House of Representatives](https://www.house.mn.gov/sessiondaily/Story/18838)) ([Minnesota House of Representatives](https://www.house.mn.gov/sessiondaily/Story/18838)) ([Minnesota House of Representatives](https://www.house.mn.gov/sessiondaily/Story/18838)) ([Minnesota House of Representatives](https://www.house.mn.gov/sessiondaily/Story/18838)) ([Minnesota House of Representatives](https://www.house.mn.gov/sessiondaily/Story/18838)) ([Minnesota House of Representatives](https://www.house.mn.gov/sessiondaily/Story/18838))
House OKs legislation to regulate data centers - Session Daily â Minnesota House of Representatives
Data centers in the United States consumed about 4.4 percent of all electricity in 2023, with consumption projected to double by 2026 due to AI-driven demand. ([Federal Reserve Bank of Minneapolis](https://www.minneapolisfed.org/article/2025/massive-data-centers-lay-roots-in-the-ninth-district)) ([Federal Reserve Bank of Minneapolis](https://www.minneapolisfed.org/article/2025/massive-data-centers-lay-roots-in-the-ninth-district)) ([Federal Reserve Bank of Minneapolis](https://www.minneapolisfed.org/article/2025/massive-data-centers-lay-roots-in-the-ninth-district)) ([Federal Reserve Bank of Minneapolis](https://www.minneapolisfed.org/article/2025/massive-data-centers-lay-roots-in-the-ninth-district)) ([Federal Reserve Bank of Minneapolis](https://www.minneapolisfed.org/article/2025/massive-data-centers-lay-roots-in-the-ninth-district)) ([Federal Reserve Bank of Minneapolis](https://www.minneapolisfed.org/article/2025/massive-data-centers-lay-roots-in-the-ninth-district)) ([Federal Reserve Bank of Minneapolis](https://www.minneapolisfed.org/article/2025/massive-data-centers-lay-roots-in-the-ninth-district)) ([Federal Reserve Bank of Minneapolis](https://www.minneapolisfed.org/article/2025/massive-data-centers-lay-roots-in-the-ninth-district)) ([Federal Reserve Bank of Minneapolis](https://www.minneapolisfed.org/article/2025/massive-data-centers-lay-roots-in-the-ninth-district)) ([Federal Reserve Bank of Minneapolis](https://www.minneapolisfed.org/article/2025/massive-data-centers-lay-roots-in-the-ninth-district))
Massive data centers lay roots in the Ninth District â Federal Reserve Bank of Minneapolis
In 2021, the construction and operation of data centers in Minnesota provided $410 million in economic output and supported 1,170 jobs. ([Minnesota House of Representatives](https://www.house.mn.gov/comm/docs/5ugjew5YbEagzTJVlId3PA.pdf)) ([Minnesota House of Representatives](https://www.house.mn.gov/comm/docs/5ugjew5YbEagzTJVlId3PA.pdf)) ([Minnesota House of Representatives](https://www.house.mn.gov/comm/docs/5ugjew5YbEagzTJVlId3PA.pdf)) ([Minnesota House of Representatives](https://www.house.mn.gov/comm/docs/5ugjew5YbEagzTJVlId3PA.pdf)) ([Minnesota House of Representatives](https://www.house.mn.gov/comm/docs/5ugjew5YbEagzTJVlId3PA.pdf)) ([Minnesota House of Representatives](https://www.house.mn.gov/comm/docs/5ugjew5YbEagzTJVlId3PA.pdf)) ([Minnesota House of Representatives](https://www.house.mn.gov/comm/docs/5ugjew5YbEagzTJVlId3PA.pdf)) ([Minnesota House of Representatives](https://www.house.mn.gov/comm/docs/5ugjew5YbEagzTJVlId3PA.pdf)) ([Minnesota House of Representatives](https://www.house.mn.gov/comm/docs/5ugjew5YbEagzTJVlId3PA.pdf)) ([Minnesota House of Representatives](https://www.house.mn.gov/comm/docs/5ugjew5YbEagzTJVlId3PA.pdf))
Minnesota HF 1277, on data center taxation â Minnesota House of Representatives
đ Key Facts
- The Minneapolis City Council debated but did not kill a proposal to introduce a moratorium on data-center uses, instead postponing discussion to May 21.
- Council Member Aurin Chowdhury is sponsoring the ordinance and wants time to align city land-use decisions with data-center debates underway at the Legislature.
- Council Members Robin Wonsley and others raised concerns about corporate data centers consuming natural resources, while Elizabeth Shaffer and business leaders like MPLS Downtown Council CEO Adam Duininck warned a moratorium is a "blunt tool" that could hurt downtown recovery.
- Duininck cited the Sleep Number building conversion, claiming its taxable value increased more than eightfold after becoming a data center, and argued that downtown already has sufficient electrical and utility capacity.
đ° Source Timeline (1)
Follow how coverage of this story developed over time