In Minnesota, the Eagan City Council is expected to vote this week on a one-year moratorium on new data centers and cryptocurrency mining operations in the city. If approved, the ban would last until February 17, 2027, blocking approvals for new facilities or expansions while the city studies potential regulations.
Data centers and crypto mining projects have drawn criticism in Minnesota and elsewhere for their high energy and water usage. Residents have expressed concerns about the environmental impact, including increased electricity demand and contributions to climate change. Similar debates arose in Hermantown and Farmington when proposed data centers faced local opposition as reported by Fox9.
Proponents argue that data centers are essential for digital infrastructure, supporting everything from cloud services to AI applications. Cryptocurrency mining, particularly “proof of work” systems, also relies on intensive computing power, though newer “proof of stake” methods reduce energy consumption but remain less widely used in commercial operations.
Haley Chinander, a Minneapolis Federal Reserve analyst, spoke with Fox9 and noted, “A growing debate in recent years has been the growing number of data centers needed with an increase in AI applications, and pushback from local communities who don’t want them in their area.”
During the moratorium, the city plans to study regulatory options to manage these facilities more effectively, balancing local concerns with the economic and technological implications. The council will hear public comments on the proposal at Tuesday’s meeting before voting.
Eagan’s move reflects a broader trend in communities grappling with the expansion of high-demand digital infrastructure and its local environmental footprint. Similar moratoriums and regulatory reviews are appearing in other regions facing rapid growth in AI, cloud computing, and cryptocurrency operations.
These data center moratoriums are becoming increasingly popular in blue states. We had reported recently about how New York State Senator Liz Krueger and Assemblymember Anna Kelles have recently introduced legislation to impose a temporary, three-year moratorium on new data center construction across the state. The legislation responds to growing public pressure since December 2025, when over 50 groups called for a moratorium, citing unsustainable resource use and rising utility costs.
The outcome of Eagan’s vote could influence how Minnesota approaches future applications for data centers and crypto mining projects, setting a model for other municipalities navigating the intersection of technology, energy, and community impact. The council is expected to meet on Tuesday to put the moratorium to an official vote.