Inver Grove Heights officials approve 1-year moratorium on data centers

On Monday evening, Inver Grove Heights, Minnesota, hit pause on a proposed data center. 

The city joins Eagan and other communities in the state trying to get ahead of the artificial intelligence boom.

In a split 3-2 vote, the City Council approved the one-year moratorium on data centers while officials study the potential long-term impacts. 

The concern stemmed from the proposed data center on the former Travel Tags site on Carmen Avenue. 

The developer behind the proposed project, the California-based investment firm Fortress Investment Group, insisted this isn't like the "mega data centers" popping up across the state and the water use is comparable to only a couple of homes.

Even after the vote, residents were frustrated because council members said they received enough input and did not allow for public comment before the moratorium was approved. 

The fight over data centers is quickly becoming one of the most heated debates in the state.

Local officials are trying to balance economic development with rising concerns from residents.

Labor groups have continued to voice support for these projects, pointing to job creation.

Minneapolis is set to take up the issue at an upcoming city council meeting where members will review how to regulate proposed data centers.