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Forest Lake planning panel recommends up to one‑year moratorium on data centers while code is revised

Forest Lake Planning Commission · July 9, 2026
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Summary

The Forest Lake Planning Commission voted unanimously to recommend that the city council adopt a moratorium — up to one year — on permitting data centers so staff can define data centers, create performance standards and consider utility and water impacts. Commissioners voiced concern about NDAs, electricity and water capacity, and where such uses should be sited.

The Forest Lake Planning Commission voted unanimously to recommend that the city council adopt a moratorium of up to one year on data centers while staff and commissioners draft definitions, performance standards and siting rules.

City planner Abby told the commission that Forest Lake’s zoning currently allows high‑energy uses in business park districts but lacks specific performance standards and screening rules for modern data centers. She asked the commission to consider a short pause so staff can define what the city will call a 'data center,' set performance standards (screening, cooling towers, backup generation, exterior equipment), and identify where such facilities would be appropriate.

Why it matters: Commissioners expressed mixed views about timing and duration. Several said they wanted to avoid unduly blocking economic opportunities, while others raised concerns about water, electrical capacity and transparency during negotiations. Commissioner concerns included the common practice of non‑disclosure agreements (NDAs) in data center negotiations and the risk that heavy users could affect residential utility rates.

Staff said a moratorium would provide time to coordinate with utilities and county/regional partners and to craft code language that prevents unintended exposures. Some commissioners suggested shorter moratoriums or a targeted schedule; staff noted the statutory maximum pause for zoning moratoria is up to one year, but that the city could end a moratorium earlier if an ordinance were adopted sooner.

Action: A motion to recommend a moratorium of up to one year for staff to analyze and develop a data center plan was moved, seconded and passed unanimously. Staff will bring recommended ordinance language and policy guidance back to the commission and the city council for consideration.