Data centers in Minnesota

St. Cloud is latest Minnesota city to consider new rules for data centers

A panoramic view
A view of St. Cloud’s downtown, pictured on Thursday, Sept. 21, 2023.
Kerem Yücel | MPR News

Quick Read

Under the ordinance, hyperscale data centers could only be located in the city's industrial district, at least a quarter mile from residential areas.

St. Cloud officials will hear from residents Monday night about possible new restrictions for data centers.

St. Cloud hasn't yet received any proposals from developers who want to build a large data center, as other Minnesota communities have, but the City Council is considering adopting an ordinance so it's prepared for any future requests.

The proposed rules would separate smaller data centers from hyperscale facilities — those with at least 2,000 computer servers housed in buildings larger than 10,000 square feet, or that use at least 50 megawatts of electricity.

Under the ordinance, hyperscale data centers could only be located in the city's industrial district, at least a quarter mile from residential areas, and would require a conditional use permit. They must be connected to the city’s water system.

Data center developers also would have to study noise, vibration, environmental and community impacts. They would also be required to incorporate sustainability measures, including water conservation and renewable energy.

After Monday’s public hearing, the council could vote on the ordinance or postpone action.

Why Minnesota is attracting data centers

Tech companies are eyeing Minnesota for data centers because of its relatively cool climate and available land, water and electricity. More than a dozen large projects have been proposed around the state.

Meta is already building a hyperscale data center in Rosemount. Google plans to build massive data center campuses in Hermantown and Pine Island, although environmental groups are fighting those projects in court.

Many Minnesotans have raised concerns about the impacts of a mega-sized facilities, including noise and light pollution, water and energy use. Proponents say they will bring construction jobs, property tax revenue and other economic benefits.

Some of St. Cloud’s neighboring cities, including Waite Park and St. Joseph, have passed one-year moratoriums on new data centers. Others, including Sartell, have adopted similar regulations.

Monticello, a city about 25 miles southeast of St. Cloud, adopted a data center ordinance in April. Its City Council will consider at a Nov. 30 meeting whether to allow a hyperscale project to move forward.

In Minneapolis, a temporary moratorium that blocks most new data centers, with some exceptions downtown, expires Nov. 21. On Thursday, the Minneapolis City Council narrowly approved new data center regulations on a 7-6 vote, including a controversial proposal to require council approval of any new data center.

The Minneapolis City Council plans to reconvene Nov. 20 to address a possible veto — one day before the moratorium ends.