Data center proposed for former Star Tribune site sparks debate in Minneapolis

MINNEAPOLIS (FOX 9) - A data center is set to move into the North Loop, sparking debate over the future of downtown and the best use of local resources.

North Loop’s former newspaper printing plant to become a data center

What we know:

A Virginia-based data center developer, Legacy Investing, plans to move into the former Star Tribune printing facility in the North Loop, which has been empty since the newspaper stopped printing there last year. The nearly 600,000-square-foot site falls within Minneapolis Council Member Michael Rainville’s ward.

What they're saying:

"We have to get things right here," Rainville said. 

Rainville believes the data center, and other future developments like it, can help shift some of the property tax burden away from homeowners, renters and small business owners. 

"They're here already, and they’re part of our economy, which will lower the tax base. For every renter and homeowner and small business owner in this city, which are getting crushed right now," said Rainville.

The Downtown Council’s perspective

Local perspective:

Adam Duininck, CEO of the Minneapolis Downtown Council, sees the data center as a potential solution to downtown’s high vacancy rate.

"How long are we willing to let 30% vacancy just hold? If we take a pass on these investments, they're going to go to a different downtown," said Duininck.

Why you should care:

While the project could fill an empty building and help downtown’s economy, concerns remain about whether data centers are the best long-term solution.

"In the short term, this is a fix for an empty building. But what do you say to people with concerns about long-term sustainability, especially when data centers aren't known to make a lot of jobs?" asked FOX 9’s Emily Pofahl. Duininck responded, "That's where I'd say our goal at the Downtown Council is to look at these for only a couple sites - a half dozen."

Community concerns and city council action

The other side:

Some city council members and neighbors are worried about the environmental impact, and whether a data center is the best use for the site.

"Is this the best use of land, a data center, or should there be more activation for community?" said Aurin Chowdhury, Council Member for the southeast side of the city.

What's next:

Chowdhury supported a recently passed pause on new data center construction, which blocks any new centers larger than 350,000 square feet downtown until the moratorium expires in November.

"If they're going to build this here, which it looks like they're going to pursue, they need to make real commitments to the community and commitments to clean energy," said Chowdhury.

What we don't know:

There is currently no timeline for when construction will begin, and the developer, Legacy Investing, has not responded to requests for comment. Legacy Investing helped transform the downtown Sleep Number building into a data center as well.

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