Minneapolis set to pass sweeping data center regulations

MINNEAPOLIS (FOX 9) - Minneapolis leaders appear close to a compromise on data centers as the city's temporary pause on construction nears its Nov. 21 end.

What the proposed Minneapolis rules would do

What we know:

The proposal discussed at a Minneapolis City Council Committee of the Whole meeting would allow data centers only downtown or in the North Loop. They could only go into existing buildings, with minimal modifications allowed. In an attempt to address the potential for noise pollution, computers will have to be 20 feet away from exterior building walls.

Local perspective:

The plan would cap data centers at 150,000 square feet. Cities cannot place a limit on energy or water use, but under these new regulations companies would have to disclose that information to the city.

"This is nothing other than keeping control for governing these data centers within us rather than farming it out to the state of Minnesota," said Councilmember Michael Rainville.

By the numbers:

The city says downtown has eight data centers serving tech companies right now. Many more data centers serving onsite computing needs of existing businesses exist around the city, according to city staff. Council members said they heard from Xcel Energy that there is interest in up to eight more data center projects downtown.

Why the council remains sharply divided

Why you should care:

The council is split in half, with one side pushing for a full ban and the other pointing to downtown's high vacancy rate and seeing data centers as part of the solution. City staff said 30 percent of Downtown Minneapolis stands empty, which leaves residents to carry a disproportionate amount of the city’s property tax burden.

The other side:

"A complete ban on data centers is tone deaf. Tone deaf to the benefit to our labor – skilled labor. Tone deaf to our residents increased property tax burden. And tone deaf to the revenue problem that we have right here in our city," said Council member Elizabeth Schaffer.

"What's tone deaf is saying that people want data centers," said Council member Soren Stevenson. "No data center in Minneapolis. That's easy. That's the easiest vote I ever had."

Big picture view:

Some council members who want a ban said the midterms were largely a referendum on data centers. "What we're talking about is actually the tone deaf proposal," said Council member Robin Wonsley. "It is very clear that our residents do not want to see this in their neighborhoods, in their community and in our city."

What happens before the moratorium ends

The council passed a six-month moratorium in May. That moratorium expires Nov. 21. Data centers could again move in with little oversight if the new rules do not pass.

What's next:

On Thursday, Nov. 12, the council will vote on the proposal. If council members stick with the plan discussed Monday, Nov. 9, the mayor's spokesperson tells FOX 9 Mayor Frey will support it.

The Source: FOX 9 report from Emily Pofahl and Minneapolis City Council discussion.