The Minneapolis City Council votes tomorrow, May 21, on an interim ordinance that would establish a citywide pause on data center permitting under a new Chapter 597 of the Minneapolis Code of Ordinances. The ordinance, authored by Council Members Aurin Chowdhury and Jason Chavez, would halt approvals for new, re-established, or expanded data center uses while city staff prepare analysis and recommendations on zoning, permitting, and development standards. If approved tomorrow it moves to the full council for a final vote in June, after which Mayor Jacob Frey, who has not indicated his position — would have the option to sign or veto. The moratorium vote arrives as at least 78 jurisdictions across the United States have enacted data center moratoriums, up from 8 in May 2025, and one week after Denver passed a one-year moratorium effective May 21.
The council is split along its usual political lines. Council Members Rainville and Osman, who together toured the Sleep Number building’s urban data center this month, argue that the kind of 20 to 40 megawatt data center that could occupy vacant downtown office space is fundamentally different from the 300 to 400 megawatt rural hyperscale facilities driving the national opposition movement. The Sleep Number building sold for $235 million earlier this year, more than eight times its assessed value as of early 2025, because it houses a data center, and moderates argue that a moratorium sends a signal that forecloses that kind of urban data center economic development precisely when downtown Minneapolis needs new demand for vacant commercial space.
Council Member Wonsley countered that data centers are corporate players who suck up natural resources and that there are other ways to generate downtown revenue. Council President Payne said those who see data centers as the saviour of downtown are wishcasting.
The Statewide Dimension That Complicates the Vote
Minnesota HF 4888, introduced April 16, would impose a statewide moratorium on new data center permits until the Public Utilities Commission submits a comprehensive assessment of data center energy, water, and community impacts. The bill creates a specific tension for the Minneapolis council: a city moratorium passed today before HF 4888 becomes law creates a local regulatory layer that may or may not align with the eventual statewide framework. Several moderate council members cited the desire to see what the state does before acting locally as a reason to delay.
The Minnesota Legislature adjourned May 18 without passing HF 4888, which means the state-level safety net that some moderates were waiting for does not currently exist, removing one of the primary arguments for inaction. The vote tomorrow is the data center industry’s next test of whether the moratorium movement can take hold in a major city with a legitimate economic development counterargument for why data centers belong downtown.
