Inver Grove Heights Approves One-Year Data Center Moratorium, Halting T5 Proposal
May 15, 2026
Inver Grove Heights Approves One-Year Data Center Moratorium, Halting T5 Proposal
The city of Inver Grove Heights, a suburb of Minneapolis, Minnesota, has enacted a one-year moratorium on new data center construction, effectively pausing a proposed project from T5 Data Centers. The decision reflects growing local scrutiny over the rapid expansion of data center infrastructure across the state.
The Inver Grove Heights City Council voted on Monday to approve the moratorium, citing general concerns about data center developments as well as a specific application for a campus at 5890 Carmen Avenue. The proposed facility, backed by T5 Data Centers, was planned as a 5MW, closed-loop cooling data center spanning approximately 55,000 square feet (5,109 square meters). During the one-year pause, the city will evaluate suitable locations, zoning districts, use types, and regulatory frameworks for future data center projects.
Inver Grove Heights is not alone in taking this step. The City of Rosemount, located south of Inver Grove Heights, enacted a similar one-year moratorium in mid-April. Meanwhile, the Minneapolis City Council is scheduled to vote on whether to impose a temporary halt on data center construction within the city limits. These moves signal a broader trend of municipal pushback against the rapid pace of data center development in Minnesota.
T5 Data Centers, founded in 2008, specializes in built-to-suit data center projects across the United States. The company has a significant footprint in major markets including Chicago, Illinois; Atlanta, Georgia; Los Angeles, California; Hillsboro, Oregon; Dallas, Texas; and Charlotte, North Carolina. The moratorium in Inver Grove Heights highlights the tension between local communities seeking to control development and the growing demand for data center capacity driven by cloud computing and AI workloads.
Source: datacenterdynamics
