Minneapolis City Council approves data center ordinance, but fails to pass full ban

MINNEAPOLIS (FOX 9) - The Minneapolis City Council passed a data center ordinance on Thursday, but wasn't able to fully ban them. 

Minneapolis data center ordinance

What we know:

The Minneapolis City Council passed the data center ordinance 7-6. 

One of the compromises that was made after the full ban failed to pass was the overlay district. Meaning, any new data center would need to be approved by the council, and they are not allowed in new construction, only in existing buildings. 

Data centers cannot be the primary use of the building, according to the city council. The regulations also include a mandatory disclosure of energy, water and generator use. A sound attenuation plan is also required. 

The City Council also added a requirement to submit a plan for decommissioning data centers if they no longer function or go out of business. 

Data centers that go above 50,000 square feet will be required to enter into a program with Xcel Energy, where the owners would be required to pay a premium, "to build out renewable energy in the large grid through the purchase of renewable energy credits," Council member Aurin Chowdhury said. 

The council's ordinance also doesn't allow data centers to be on the first or second floor of buildings. 

What's next:

The ordinance now goes to Minneapolis Mayor Jacob Frey for approval. The City of Minneapolis currently has a moratorium on data centers, but it expires on Nov. 21. 

Data centers in Minneapolis

The backstory:

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.

The Source: A Minneapolis City Council press conference, and past FOX 9 reporting.