The Eagan City Council has reportedly approved a one-year moratorium on data centers and cryptocurrency operations, the first such pause in Minnesota. The council cited the need for a deeper understanding of the environmental, economic, and community impacts of these projects before allowing further development.
According to Fox9, the moratorium applies to any proposed data center or cryptocurrency mining operation within 500 feet of residential zones or consuming more than 20 MW of electricity. During the moratorium, building permits for construction, expansion, or alteration are suspended, except for essential repairs. The measure, which passed unanimously following a public hearing, will remain in effect until February 17, 2027, unless the council votes to lift it sooner.
Readers will recall that the moratorium was first considered by the Eagan City Council on Feb 15 due to a growing concern that electricity demands from new data center facilities and cryptocurrency mining operations would have adverse impacts on local community power infrastructure, environmental safety and climate change contribution.
Data centers have become increasingly controversial across Minnesota. Recent proposals in Hermantown and Farmington faced opposition from residents concerned about high electricity usage, noise, and strain on local infrastructure. Modern facilities often consume far more power than older centers, with some demanding hundreds of MW, making even a 10 MW facility relatively small by comparison.
Supporters of data centers argue that they are essential for technological growth, particularly in areas such as artificial intelligence, cloud computing, and digital services, while also offering the potential for local job creation. Cryptocurrency mining, in particular, raises additional concerns due to its intensive energy demands and environmental footprint.
Local moratoriums like Eagan’s could set a precedent across the state, potentially creating a patchwork of regulations that complicates state wide planning and future studies. The pause gives officials time to examine the long-term effects of data centers and cryptocurrency operations on communities, resources, and the environment before approving new projects.