Minneapolis City Council advances data center plan, lays out rules

Minneapolis City Council advances data center plan, lays out rules Ben Henry KSTP Minneapolis City Council advances data center plan, lays out rules Minneapolis leaders moved a data center ordinance ahead as members remained split over tax relief, oversight and environmental concerns. The Minneapolis City Council moved the ordinance forward Monday, with the city’s moratorium set to end in two weeks. The proposal is headed to a full council vote later this week. There were more than 1,600 public comments as the council debated the rules. The ordinance would require data centers to be downtown, 150,000 square feet or smaller and only in existing office space. Other restrictions included that data centers cannot be the primary use of a building or be on the first two floors. Supporters said the projects could help as downtown property values slump and the tax base falls. “I have heard some say that the economic benefit of these small-scale data centers is wishful thinking; I beg to differ,” Minneapolis City Council Member Elizabeth Shaffer said. “Will small-scale data centers be a cure-all for revenue generation?” Shaffer asked. “I’ve already said no. Is it a step in the right direction for some revenue generation and property tax relief? Yes.” Councilmember Aurin Chowdhury backed an all-out ban, but that effort failed Monday. Chowdhury said residents wanted stronger limits and raised concerns about environmental effects. “What I hear from my constituents is, ‘Don’t sell us out to big tech, don’t sell it out to this industry that oftentimes tries to go around the rules and find loopholes,'” Chowdhury said. “It could have absolutely gone further,” Chowdhury added. “Residents asked for far more.” The council also failed to approve an overlay district that would have required future data center projects to get council approval. Mayor Jacob Frey’s office said he did not support that step but does support the ordinance the full council will take up later this week. His office shared the following: “The Mayor had been in conversation with council members ahead of today’s meeting. He supports the regulatory framework that was approved today.”