ORD 2026-11 Interim Ordinance Imposing a Moratorium and Authorizing Study of Official Controls for Data CentersCITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
ORDINANCE NO: 2026-11
INTERIM ORDINANCE IMPOSING A MORATORIUM AND AUTHORIZING STUDY OF OFFICIAL CONTROLS
FOR DATA CENTERS.
THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN:
Section 1. Purpose. The purpose of this Interim Ordinance is to protect the health, safety, and welfare
of the citizens of the City of Otsego ("City") by preserving the status quo while the City undertal<es a
planning process to study Data Center land uses, as defined herein, during the term of this Interim
Ordinance, and to consider possible adoption or amendments of the Zoning Ordinance during the term of
this Interim Ordinance.
Section 2. Definition. The following term shall have the following meaning when used in this Interim
Ordinance:
Data center: A facility used primarily for the storage, management, processing, and
transmission of digital data that houses computer or network equipment, systems,
services, appliances, and other associated components related to digital data storage and
operations, together with its accessory and appurtenant facilities. A Data Center may also
include offices, air handlers, electric power generators, water cooling systems, water
storage facilities, utility substations, and other associated infrastructure necessary to
support sustained operations at the facility.
Section 3. Findings. The City Council hereby finds and determines that:
A. Due to the evolution of new technologies, including artificial intelligence, cloud -based computing,
and other digital infrastructure and services, cities within Minnesota have seen a rapid increase
in the development and operation of Data Centers;
B. The City is a governing body in accordance with the Municipal Planning Act, Minnesota Statutes,
Chapter 462 ("Act"), and it has previously exercised its authority pursuant to the Act to adopt the
Otsego Zoning Ordinance, codified as Title 11 of the Otsego City Code;
C. Data Centers are allowed as a permitted use within the B-4, Business Office District; 1-1, Limited
Industrial District; and 1-2, General Industrial District, established by the Otsego Zoning Ordinance;
D. Permitted uses within the B-4 District, 1-1 District, and 1-2 District require an application for Site
and Building Plan Review in accordance with Section 11-9-2 of the Zoning Ordinance;
E. The City has not previously and is not currently in receipt of an application for Site and Building
Plan Review for development of a Data Center within the City;
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F. The City has not previously studied Data Centers as a potential land use;
G. The impacts that Data Centers may have within the City to public health, safety, and welfare,
including, but not limited to, the natural environment, land use compatibility, and City service
capacity and infrastructure, are not fully known or understood at this time;
H. The Memorandum dated 2 July 2026 prepared by the City Planner, The Planning Company LLC, is
incorporated herein;
The Planning Commission considered Data Centers at a special meeting on 6 July 2026 and,
following discussion, voted 7-0 to recommend that the City Council adopt an Interim Ordinance
prohibiting development of Data Centers within the City to allow a land use study of potential
zoning regulations and other official controls to be undertaken;
The City Council, in considering the recommendation of the Planning Commission and other
evidence received, has determined that the Zoning Ordinance may be inadequate to regulate Data
Centers due to the changing nature of such uses, including with respect to appropriate locations
within the City, the conditions under which Data Centers may be allowed, appropriate zoning
districts, use performance standards, compatibility with existing and planned land uses, and
potential impacts to City service capacity and infrastructure;
K. Minnesota Statutes, Section 462.355, Subdivision 4 authorizes the City to adopt an Interim
Ordinance to regulate, restrict, or prohibit any use, development, or subdivision within the City
to protect the planning process and the health, safety, and welfare of the City for the purpose of
considering adoption or amendment of official controls defined in Minnesota Statutes, Section
462.352, Subdivision 15;
L. It is in the best interest of the City to adopt an Interim Ordinance prohibiting development of Data
Centers within the entire City to allow the Planning Commission an opportunity to study whether
and how Data Centers may be allowed within the City and to consider amendments to the Zoning
Ordinance to appropriately regulate Data Centers.
Section 4. Study Authorized. The Planning Commission is hereby authorized and directed to
conduct a study of Data Centers including, but not limited to, the appropriate zoning districts for location
of Data Centers; whether Data Centers are to be allowed as permitted, conditional, or interim uses;
potential regulations and performance standards necessary to mitigate potential negative impacts of Data
Centers; how Data Centers are regulated by other local government units; and recommendations as to
how the Zoning Ordinance and other official controls should be amended to regulate Data Centers.
Section S. Moratorium Imposed. A moratorium is hereby imposed for the entire City on Data
Centers, which during the term of this Interim Ordinance shall be a prohibited use. During the period of
this moratorium, no new or existing Data Center shall be constructed or expanded in the City, and no
application for any zoning approval, building permit, or other City approval contemplating construction
or expansion of a Data Center shall be accepted, reviewed, processed, or approved by the City.
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Section 6. Term. This Interim Ordinance shall remain in effect for one (1) year from its effective
date unless it is expressly repealed earlier by the City Council or unless a shorter duration is required by
applicable law. If the City adopts an ordinance amending the Zoning Ordinance regulating Data Centers
prior to the expiration of the moratorium, this Interim Ordinance shall terminate on the effective date of
the Zoning Ordinance amendment.
Section 7. Severability. Every section, provision, and part of this Interim Ordinance is declared
severable from every other section, provision, and part of thereof. If any section, provision, or part of this
Interim Ordinance is held to be invalid by a Court of competent jurisdiction, such judgement shall not
invalidate any other section, provision, or part of this Interim Ordinance.
Section 8. Effective Date. This Interim Ordinance shall become effective immediately upon its
passage and publication.
(Remainder of page intentionally blank; signatures follow)
ADOPTED by the Otsego City Council this 271h day of July, 2026.
MOTION BY: Tanner
SECONDED BY: Lund
IN FAVOR: Stockamp, Dunlap, Goede, Lund, and Tanner
OPPOSED: none
CITY OF OTSEGO
Jessica L. Stockamp, Mayor 10
ATTEST:
Audra Etze , City Clerk
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