1. Adopting an Interim Ordinance authorizing a study and imposing a moratorium on Data Centers; and
2. Holding the first reading at the November 16, 2026, Council meeting. 

Due to a significant transformation and evolution in new technologies, including artificial intelligence, cloud computing, and other digital infrastructure, Minnesota has recently seen an increase in the development and discussion of Data Centers, which require significant resources to construct and operate and which may create effects that are incompatible with other land uses in the City. The impact that data centers may have within the City and on public health and welfare, including those related to planning functions, public utilities, and the environment, is not fully understood or known at this time. City teammates have determined that although the Unified Development Code imposes regulations on numerous types of uses throughout the City, it does not clearly impose rules or regulations related to data centers. City teammates recommend the Common Council initiate a study to review the potential impacts of data centers and to determine rules and regulations for adoption and enact a City-wide moratorium on Data Centers to provide City teammates with an adequate time to conduct a meaningful study. 

If adopted, the Interim Ordinance will take effect immediately following notice of approval, and City teammates will begin a comprehensive study on best practices related to the development of Data Centers and their compatibility with existing land uses. City teammates will plan for future public engagement with residents to gauge community sentiment through open house style events during the study period. Upon compiling community comments and comprehensively studying the issue, City teammates will present their findings and recommendations to Council at a future study session prior to submission of a proposed Text Amendment to the Unified Development Code. A proposed Text Amendment will be required to have a public hearing at both the Planning Commission and the Common Council, followed by two readings. 

For the purposes of the Interim Ordinance, "Data Center" means a building or other facility used principally for the storage, management, processing, and/or transmission of digital data, which houses computer or network equipment, systems, services, appliances, and/or other associated components related to digital data operations. A Data Center may also include accessory and appurtenant facilities, such as offices, air handlers, power generators, water cooling systems and water storage facilities, utility substations, and other associated infrastructure necessary to support sustained digital data operations. The term "Data Center" shall not include computing facilities which are merely accessory to a separate lawful principal use.

The proposed Interim Ordinance aligns with the Rochester Comprehensive Plan's goals of promoting responsible growth, protecting public health and the environment, and ensuring that development is compatible with surrounding land uses. As Data Centers represent an emerging land use with potentially significant demands on public utilities, infrastructure, energy, and natural resources, additional study is necessary to better understand their potential impacts on the community. Establishing a temporary moratorium would provide the City with an opportunity to evaluate these considerations and develop appropriate land use regulations to ensure future data center development is consistent with the community's long-term vision. This proactive approach supports the Comprehensive Plan's emphasis on thoughtful, sustainable growth while protecting the health, safety, and welfare of Rochester residents. 

There are no prior actions.

No financial impacts are had on the City as a result of this change.

No alternative actions are recommended at this time.