Inver Grove Heights weighs pause on new data centers
On June 26, Inver Grove Heights City Council discussed an interim moratorium to pause approvals of new data centers while the city studies power, noise, land use and tax impacts.[1]
The ordinance would bar new permits during the study period and give staff time to draft zoning and infrastructure rules, city officials said.[1] The council first considered a moratorium on May 11 and held a second reading on June 8 ahead of Tuesday's discussion.[1]
A surge of hyperscale data center proposals hit Minnesota in early 2025, with more than 20 projects publicly identified by mid-2025. As of June 2026, Minnesota had 15 operating data centers totaling 351 MW and 13 planned projects that would add 1,512 MW. Xcel Energy projects it will supply roughly 1,300 MW to data centers in Minnesota and the Dakotas over the next seven years, about the power demand of Minnesota's 2.3 million households.
The mainstream summary does not mention the significant energy implications of the proposed data centers. If just 10 of the proposed hyperscale data centers in Minnesota are built, they would consume as much energy as the entire state, with Xcel Energy projecting a supply of 1,300 MW to data centers in Minnesota and the Dakotas over the next seven years, roughly equivalent to the power demand of Minnesota’s 2.3 million households. This stark figure highlights the urgency of the city council's moratorium discussions, which are not merely procedural but essential for addressing potential resource strains.
Additionally, while the summary notes the city's intention to study various impacts, it overlooks the broader context of community pushback against data centers due to their high electricity and water demands, which can strain local grids and contribute to rate hikes. A study by the Lawrence Berkeley National Laboratory suggests that data centers could account for up to 12% of U.S. electricity consumption by 2028, emphasizing the critical need for regulatory pauses like the one being considered in Inver Grove Heights. This context frames the moratorium as a necessary response to both local and national energy challenges rather than a simple administrative delay.[2][3][4]
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📊 Relevant Data
Minnesota has 15 operating data centers with a combined capacity of 351 MW and 13 planned projects that would add 1,512 MW of additional capacity.
Data Centers in Minnesota — Project List & Locations — Cleanview
If just 10 of the proposed hyperscale data centers in Minnesota are built, they would consume as much energy as the entire state of Minnesota; Xcel Energy anticipates supplying data centers with 1,300 MW in Minnesota and the Dakotas over the next seven years, roughly equivalent to the power demand of Minnesota’s 2.3 million households.
Mega data centers are coming to Minnesota. Their power needs are staggering. — Star Tribune
📌 Key Facts
- Inver Grove Heights City Council held a June 26, 2026 discussion on an interim moratorium targeting new data center development.
- The proposed pause would block approvals while the city studies impacts on power infrastructure, noise, land use, and tax revenue.
- This action would align Inver Grove Heights with a growing list of Twin Cities cities that have enacted or proposed data center moratoria in response to a wave of large-scale projects.
📰 Source Timeline (1)
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