Minnesota city halts large data centers, crypto mines for one year

Melissa Palmer

February 18, 2026

Eagan just put a year-long moratorium on large data centers and crypto mines, using a 20 MW power threshold and 500-foot distance from homes as the trigger.

This is the first size- and location-based pause in Minnesota and is a direct response to AI-driven proposals for hundreds of megawatts of new capacity across the state.

The city wants time to study environmental, noise, and land-use impacts, moving away from treating data centers like generic warehouses, especially near residential areas.

Developers warn the move could chill investment, but Eagan carved out exceptions so already approved projects and smaller power add-ons can proceed, signaling a calibrated slowdown rather than a full stop.

At the state level, Minnesota is already tying big facilities to water conservation, utility cost shielding, and low-income energy programs, and environmental groups are now pushing for a statewide moratorium and unified permitting.

For AI infra planners, this is a clear signal that MW thresholds, cooling water, and transparency will shape siting as much as tax incentives, especially in secondary markets like Minnesota.

The article is worth reading for the local policy details and how they may foreshadow similar guardrails in other AI-heavy regions.

Source: Minnesota suburb puts moratorium on new data centers

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