Minnesota data centers: Carver City Council approves 1-year moratorium

The impact of data centers on the electric grid

Leaders from Xcel Energy shared the impacts data centers would have on the electrical grid. FOX 9's Rob Olson has more. 

CARVER, Minn. (FOX 9) - A one-year moratorium on data center development was unanimously approved by the Carver City Council. 

READ MORE: Minnesota's first-ever ban on data center, crypto operations approved

City of Carver data center moratorium 

Big picture view:

The Carver City Council said the purpose of the moratorium is to allow city staff to study the impact that data center development has on the surrounding "natural and built environment." 

The vote passed during the city council meeting on April 6.

This would give city leaders the information needed to make recommendations on zoning ordinances and data center regulations on water systems and sound impacts.

There was not any pending data center project in Carver before the vote took place.

The moratorium is set to last for a year, but the city could vote to repeal it early.

Minnesota data center controversy

Data center debate in Monticello

Residents in Monticello are raising their concerns over the potential for data centers in their area. FOX 9’s Mike Manzoni has the latest.

The backstory:

Data centers have become controversial projects in recent years, with proposals in Hermantown and Farmington facing resistance from local residents.

Activists began urging lawmakers to ban non-disclosure agreements between local governments and tech companies, a practice that is sometimes used to shield the public from information when data centers are in development.

READ MORE: Bill to stop MN cities and counties from signing non-disclosure agreements stalls in House committee

Critics also raise issues with the resources data centers draw from local communities, such as electricity. However, Bob Frenzel, the CEO of Xcel Energy, said data centers would not impact the electric bill of surrounding residents. 

In addition to needing more of them as advancements to AI continue, data centers are using more electricity as well – a modern 10-megawatt data center is now small compared to some that are commanding hundreds.

However, those in favor of data centers are quick to note their necessity as technology develops, and the potential for local job creation.