Secondary Market: Minneapolis

Colocation Insights

• Wholesale and retail activity slowed in H2.

Market Trends

• Land and power inquiries from out-of-market operators rose in H2.
• Minneapolis has emerged as a viable option for larger-scale development, due to available land and lower costs.

Notable Activity

• cloudHQ announced plans to build up to 1.4 million sq. ft. in Chaska.
• Cloud Capital (cloudHQ) purchased a facility formerly owned by United Health Group in Elk River for $90 million.
• Google announced they have indefinitely postponed the $600 million Becker development.
• Two other large-scale data center projects ($1 billion and $700 million) were reported to be selecting land sites in the market.

Figure 1: Historical Market Information

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 2: Historical Supply and Demand

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 3: % of Total Secondary Market Inventory

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.

Figure 4: Market Fuel Mix

Source: Xcel Energy.

Figure 5: Average Asking Rates

Source: CBRE Research, CBRE Data Center Solutions, H2 2022.