Eagan halts large data centers, crypto mining for a year
The Eagan City Council has unanimously approved Minnesota’s first citywide moratorium targeting data centers and cryptocurrency mining, imposing a one‑year pause on new projects that either sit within 500 feet of residential zoning or would draw more than 20 megawatts of electricity. Adopted Feb. 17, 2026, the interim ordinance blocks building permits for new, expanded or altered facilities in those categories until at least Feb. 17, 2027 while the city studies environmental, power‑grid and neighborhood impacts. The move comes as communities from Hermantown to Farmington have pushed back on data‑center proposals over massive power use and local impacts, even as tech firms tout jobs and tax base tied to AI and cloud growth. Eagan’s action raises the risk of a patchwork of local moratoriums across Minnesota, which could complicate statewide rules and siting for future hyperscale computing and crypto operations. For south‑metro residents, it effectively slams the brakes on any big new server farms or crypto mines near homes while the city decides how much of that industry it’s willing to host and on what terms.
📌 Key Facts
- Eagan adopted an interim ordinance on Feb. 17, 2026 creating a one‑year moratorium on certain data centers and cryptocurrency operations.
- The ban covers projects within 500 feet of residential‑zoned property or any facility using more than 20 megawatts of electricity, and runs until Feb. 17, 2027 unless ended earlier by council vote.
- During the moratorium, Eagan will not issue building permits for new construction, expansion or alteration of covered facilities except for necessary repairs while it studies environmental and infrastructure impacts.
📊 Relevant Data
As of February 2026, Minnesota has 13 operating data centers with 43 MW of capacity and 12 planned projects that would add 1,120 MW of additional capacity.
Minnesota Data Center Map - Project List & Locations — Cleanview
Xcel anticipates supplying data centers with 1,300 megawatts in Minnesota and the Dakotas over the next seven years.
Minnesota Braces for Power Needs of Incoming Data Centers — GovTech
Data centers require millions of gallons of water each year to cool the facility as well as to generate electricity to run them efficiently.
Data Centers - A Threat To Minnesota's Water — Clean Water Fund
Each large scale data center employs as many as 1,500 construction jobs for up to three years, creating on average $140,000 in annual wages per job.
Data centers don't just create servers. They create jobs and opportunity — Alabama News Center
In Hermantown, opposition to a proposed data center includes concerns about environmental impacts, broken promises from similar projects, constant noise pollution, impacts on the power grid and water resources, and creation of very few permanent jobs.
Hermantown residents sound off on proposed data center — Northern News Now
In Farmington, residents are pushing back against a massive hyperscale data center proposal due to concerns over its size, potential environmental and infrastructure impacts, and lack of transparency in the development process.
Farmington residents push back against massive data center proposal — CBS News
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