What's Happening?
A Virginia-based developer, Legacy Investing, plans to convert the former Star Tribune printing facility in Minneapolis' North Loop into a data center. The site, which has been vacant since the newspaper ceased operations there last year, is seen by some
local leaders as a potential solution to the area's high vacancy rates. Minneapolis Council Member Michael Rainville supports the project, suggesting it could alleviate the property tax burden on homeowners, renters, and small business owners. However, there is no announced timeline for construction, and the developer has not commented on the project. The Minneapolis Downtown Council's CEO, Adam Duininck, views the data center as a way to address the 30% vacancy rate downtown, warning that missed investments could lead to opportunities moving elsewhere.
Why It's Important?
The proposed data center could significantly impact Minneapolis' downtown economy by filling a large vacant space and potentially reducing the tax burden on residents and small businesses. However, the project has sparked concerns about the long-term sustainability and community impact of data centers, which typically do not create many jobs. The debate highlights the challenges cities face in balancing economic development with community needs and environmental considerations. The decision to proceed with the data center could set a precedent for how Minneapolis and similar cities approach urban redevelopment and resource allocation.
What's Next?
Minneapolis City Council Member Aurin Chowdhury has supported a temporary pause on new data center constructions larger than 350,000 square feet until November. This moratorium allows time to assess the community and environmental commitments of such projects. The outcome of this pause and the developer's response will likely influence future urban development strategies in Minneapolis. Stakeholders, including local government and community groups, will need to negotiate terms that address both economic and environmental concerns.
