Calls for pause on data center growth in Minnesota

A coalition of environmental and community groups is urging Minnesota lawmakers to impose a two-year halt on new data center construction so state policy can catch up with a wave of proposals, a push that comes amid already active local and state-level responses. An opinion piece published in The Minnesota Star Tribune and submitted by Kathryn Hoffman - CEO of the Minnesota Center for Environmental Advocacy on behalf of a long set of signatory groups claiming authorship - suggested that a recent wave of investment in data centers had the potential to deliver environmental strain, lacked oversight and were proceeding with a lack of transparency. The authors called for an urgent need for proper policy development before proceeding with more of such construction.

Legislators enacted a package of regulations last year that sets definitions and sustainability requirements for large-scale facilities, but the advocates say more time is needed to assess cumulative local impacts.

Advocacy groups report they are tracking dozens of prospective projects around the state and receiving frequent inquiries from towns worried about unannounced plans. That proliferation is mirrored in reporting on several large proposals across Minnesota, some of which would encompass millions of square feet and hundreds of acres if built.

The June 2025 state package aimed to create a regulatory framework that targets “qualified large-scale data centers,” ties tax exemptions to project size and cost thresholds, and requires sustainability measures and prevailing wages within the early years of operation. The new law reflects growing attention on how high-energy facilities intersect with tax policy and environmental standards.

Industry reactions show how rapidly evolving policy can reshape investment decisions. In May 2025 Amazon Web Services paused plans for a planned Minnesota campus, according to the Data Center Dynamics website, citing uncertainty in the permitting environment and related incentives, and redirected resources to projects that could be advanced more quickly. That move illustrates the trade-off between stricter public safeguards and the state’s ability to secure near-term data center investment.

Cities are increasingly taking matters into their own hands. The Minnesota city of Eagan just last week adopted a one-year moratorium on large data center construction in specified circumstances to give local officials time to study noise, electricity demand and implications on resources. 

The debate now centers on balancing potential economic benefits against strains on infrastructure and natural resources. Legislative and municipal actions in Minnesota and elsewhere have already begun to shape where and how the industry may expand, but advocates and some local officials contend a temporary statewide pause would allow for a more deliberate strategy on siting, cumulative environmental effects and community protections.