Local Politics
  1. Home
  2. US
  3. Minnesota
  4. Minneapolis
  5. Issues

Data Center Zoning Amendment

At a glance

Based on auto-generated captions, which may contain errors in names and numbers.

  • What: a zoning code text amendment (five chapters, with about nine Council authors) that defines "data center" for the first time and limits where and how they can be built, plus rules on electric utility boxes, battery storage and generators. It follows a six-month Council moratorium on new data centers that expires November 21, 2026. Council Member Chowdhury and Council Member Shaffer worked closely with staff.
  • Where it stands: on October 13, 2026 the City Planning Commission held a public hearing and approved the staff recommendation 7-0, with two amendments directing staff to rewrite parts of it.
  • Next: Business, Housing and Zoning Committee on November 6, then the full City Council on November 12, 2026, with publication timed to the moratorium's end.

Staff recommendation

  • Data centers become a defined principal use allowed only in the DT1 and DT2 downtown districts, only in existing buildings (minor additions allowed), and only by conditional use permit.
  • Up to 175,000 square feet of "white space" (server and equipment area); white space at least 20 feet inside the exterior wall and 100 feet from a nearby residential use; no equipment on the first or second floors; a data center cannot be the only principal use of a building; equipment indoors or on the roof.
  • Applicants must disclose expected water and electricity use and generators, submit a sound attenuation plan and show coordination with Xcel Energy.
  • Data centers do not count as an active ground-floor use. Utility boxes may sit in front yard setbacks (screened, up to six feet) and rear yards next to alleys; battery storage is an accessory use; stronger limits on stationary generators next to homes.
  • Earlier drafts also allowed data centers in the heavier industrial district; dropped after pushback and doubts about grid capacity.
  • If nothing is adopted, data centers revert to a "communication exchange" use allowed in 10 of 15 zoning districts. The city cannot regulate by megawatt, air emissions, cooling type, or building standards above the state code.

Public testimony

  • About 30 speakers. Common asks: remove data centers from primary zoning, extend the moratorium, cap size far lower (25,000 square feet), 250-foot distance from homes, schools and parks, notice within 1,000 feet, no tax breaks, and franchise fee revenue for climate work. Several urged a ban; neighborhood groups cited resolutions in many neighborhoods.
  • Building trades and laborers' union representatives supported responsible limits and asked for labor standards; one resident supported the ordinance as written.
  • Xcel Energy said data centers pay for needed grid upgrades, with clawback provisions, and that load growth will not jeopardize the 2040 clean energy standard.
  • Council Member Wonsley urged eliminating primary zoning.

Commission action (October 13, 2026)

  • Amendment 1 (Commissioner Conley): require an overlay district created by rezoning in DT1 and DT2, instead of primary zoning with a conditional use permit; staff to draft for the committee. Adopted 6-1; Chair Meyer opposed.
  • Amendment 2 (Commissioner Garcia): cap white space at 50,000 square feet instead of 175,000. Adopted 5-2 (Commissioner Baxley and Chair Meyer opposed).
  • Below-grade amendment (Commissioner Baxley) withdrawn; staff said basements are not restricted.
  • Main motion as amended: 7-0. Concerns raised: uncertain fiscal benefit, lack of state authority to regulate by megawatt, Native nation consultation not done, building occupancy rules that could skip energy code upgrades.

Sources

Discussion time

About 204 minutes across 1 meeting (from transcript timestamps; approximate).

Meeting Minutes
2026-10-13 - City Planning Commission 204

Log

  • 2026-10-13 - City Planning Commission - public hearing with about 30 speakers; commission approved the staff recommendation 7-0 after amendments for an overlay district (6-1) and a 50,000 square foot cap (5-2).
  • 2026-09-28 - City Planning Commission - staff said the October 13 meeting would take up the amendment and could not be continued because of the moratorium timeline; large turnout expected.

2026-10-15 - City Council

Notice was given of a separate ordinance, introduced by Council Member Chowdhury, adding a Chapter 271 that would set licensing requirements for qualifying data centers (marked agenda).