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Minnesota counties look to regulate the 'wild west' of data centers

Eleanor Hildebrandt, The Minnesota Star Tribune on

Published in Business News

Angry residents already pushed several Minnesota cities to set tighter rules for data centers. Now some county officials are trying to set limits, too.

Wright County recently put a moratorium on the facilities, and on Tuesday, Washington County considered its regulatory options. Dakota County has also discussed whether to step into the increasingly heated debate.

Concerns over data centers have grown along with the size of the proposed facilities. But even as people pack meetings with concerns about noise, proximity to homes, and electricity and water usage, the laws governing data centers are piecemeal and vary from one place to another.

While cities set the rules within their limits, counties have a say over unincorporated areas.

Washington County Commissioner Michelle Clasen urged her fellow commissioners to take a stand earlier in June, pushing for a draft ordinance to prohibit data centers over environmental concerns.

“Our water sources must be protected against consumption,” she said. “We are seeing counties everywhere being surveyed and scoped out for potential data centers. Washington County must have a strong opposition.”

But Commissioner Karla Bigham questioned the impact of such an ordinance.

“We don’t have land that would be suitable for [a data center] so I don’t even see that as an option,” Bigham said.

On Tuesday, commissioners continued to discuss their options and how to work with townships to develop rules. But other counties have already imposed ordinances and emergency moratoriums, much like cities.

The Wright County Board unanimously voted for an emergency moratorium on all new data centers in May, the first county to take such a vote. The longest a moratorium can last is one year.

The county’s action came after residents raised concerns about two data center proposals, each over a million square feet, near Monticello.

Commissioner Kirby Moynagh said the county hopes to use the time to develop an ordinance for future businesses looking in the area. They’re already putting together a team of utility experts, industry representatives and residents to address the issue — and minimize misinformation.

 

“Data centers are going up everywhere, all across the country,” he said. “My hope is when we come out of this, we’re going to have an ordinance that’s going to be good for 5, 10, 15 years.”

Carlton County, too, is debating data centers as it works on a comprehensive land use plan. Chris Berg, the county’s zoning and environmental services administrator, said the board plans to discuss a moratorium at its July meeting.

Other counties are more optimistic about data centers, even hoping to lure them.

Sherburne County Administrator Bruce Messelt said there is land ready for a data center there. The county is advertising itself as “shovel ready” for such technology, since it has had multiple data centers for years.

Messelt said any new developments would reuse water to protect against over consumption.

Over the past few years, Messelt said he’s watched the public opinion on data centers flip flop, which has led to more backlash against potential developments.

The Legislature removed its sales tax exemption on electricity for data centers in 2025. Messelt said the county was hoping to use that exemption as a way to attract companies and make up for the loss of a coal energy plant in the county.

“That’s just a whipsaw on a community that’s already going through the closure of a huge industrial facility,” he said.

Meanwhile, Moynagh from Wright County said he hopes more officials look at the “wild west” of data center regulations and ask what they can do to standardize or improve them.

“Data centers, they’re not going away, they’re going to be here for decades, possibly centuries,” he said. “I just want to make sure that we’re responsible, and we really take time to put something together that’s well thought out.”


©2026 The Minnesota Star Tribune. Visit at startribune.com. Distributed by Tribune Content Agency, LLC.

 

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