In a recent decision, the Inver Grove Heights City Council approved a one-year moratorium on the construction and expansion of data centers within the city. This pause aims to allow city officials to thoroughly study the potential long-term impacts of such facilities on the community.
The moratorium was prompted by a proposed 55,000-square-foot data center on the former Travel Tags property at 5890 Carmen Avenue. Residents have expressed concerns regarding noise levels, water usage, sewer discharge, and the facility’s proximity to residential areas. The developer, T5 Data Centers, has indicated that the project would utilize up to 5 megawatts of power at full capacity and employ a closed-loop water system for cooling.
City Attorney Bridget Nason explained that the moratorium serves to “protect the planning process” and allows the city to “push pause to preserve the status quo while studies are conducted.” This approach mirrors actions taken by other Minnesota cities, such as Eagan, which have also implemented temporary halts on data center developments to evaluate their environmental and infrastructural impacts.
During the moratorium, Inver Grove Heights officials plan to engage with residents, industry experts, and other stakeholders to gather input and ensure that future data center projects align with the city’s long-term goals and community standards.

