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Minneapolis Narrowly Votes To Make Big Data Centers Buy Green Power
The Minneapolis City Council voted 7-6 to restrict where new data centres can open and require larger facilities to use renewable electricity. The compromise now goes to Mayor Jacob Frey, who has said he supports its regulatory framework; the rules could shape whether the city attracts data centre investment while addressing concerns about energy use and neighbourhood impacts.
Under the ordinance, facilities must be located in existing buildings in one of two downtown overlay districts, with each application requiring council approval. They are limited to 50,000 square feet, or 150,000 square feet if they buy renewable power for all their electricity; buildings must have another main use, servers cannot be on the first or second floor, and they must be at least 100 feet from nearby homes. The council rejected a proposed ban and stricter amendments, while Oakland extended its pause on new data centres until October 2027.
In short
- Minneapolis approved data centre restrictions by a 7-6 vote.
- Larger centres can reach 150,000 square feet if fully powered by renewables.
- Each new facility will need council approval.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters can argue that data centres bring investment and useful digital infrastructure, but their substantial electricity demand and effects on nearby residents warrant clear limits. Requiring renewable power for larger facilities and steering them into suitable existing buildings may allow some development while reducing pressure on the grid and neighbourhoods.
The case against
Critics can argue that tight location, size and approval rules may deter investment and jobs, while limiting the city’s ability to meet growing demand for digital infrastructure. They may also question whether requiring renewable electricity and restricting sites is the best way to address energy and neighbourhood concerns, particularly if it makes projects harder to build without resolving those impacts.
Explained simply
Data centres are buildings that house the computer servers and equipment used to store and process digital information. They need substantial electricity to run and keep the equipment cool, and their size and location can affect nearby streets and homes.
Minneapolis City Council sets local rules on where such facilities can operate and how buildings may be used. Mayor Jacob Frey is the city’s mayor, and the council vote sends the ordinance to him for consideration.
The debate reflects a wider challenge for cities: data centres can support digital services and investment, while also raising questions about electricity demand and neighbourhood impacts. Minneapolis’s approach may influence whether companies choose to build there and how the city balances those concerns.