Axios Twin Cities
March 19, 2026
1 big thing: How data centers could revive downtowns
Data centers have become a point of tension in Twin Cities suburbs, but for downtown developers, they could be a goldmine.
Why it matters: The collapse of office tower values has pushed property taxes higher for residents. Data centers could help boost those values again, spur more residential and commercial development and even help heat other buildings.
Case in point: The Sleep Number headquarters in downtown Minneapolis sold in January for $235 million. It's the highest price paid for an office building in the city since 2019, according to state data analyzed by Axios.
Zoom in: That's because the previous Sleep Number HQ owner increased the building's data center capacity from 2 megawatts to 21 megawatts — all in the basement.
The latest: Local development consultant Don Kohlenberger is helping Sherman Associates replicate that model elsewhere. They've gained city approvals to expand the data center in the former Wells Fargo operations center on Washington Avenue from 6 megawatts to 26.
- "It's gotten everybody's attention," Kohlenberger told Axios of the Sleep Number project. "It's a proof of concept."
- The Wells Fargo building is now on the market, and its sale price could provide more proof.
Zoom out: Data center development has surged across the country with the rise of artificial intelligence, which requires large amounts of data capacity.
Friction point: Concerns about noise, energy use and water consumption have led to fights in Twin Cities suburbs and beyond.
- Farmington's mayor resigned after one contentious debate last month.
Yes, but: Downtown data centers are smaller than those in the suburbs, which typically have capacities of hundreds of megawatts.
How it works: Legacy Investing, which operates the Sleep Number building data center, told the Minneapolis/St. Paul Business Journal that downtowns are ideal for data centers because they have robust fiber-optic networks that can move data quickly.
- Plus, they rent for prices you find in high-end office space in Midtown Manhattan, the firm said.
- The data centers could also help heat other downtown buildings. The city's district energy provider, Cordia, told Axios it's in talks with multiple parties about routing recovered thermal energy back into its network.
Reality check: While this could help rebuild downtown's tax base, it doesn't bring many people back downtown.
- But Kohlenberger has been advocating for a wedding cake model. Data centers in basements or on ground floors would provide lenders with confidence and developers with enough cash flow to be patient in filling vacant office space or converting upper floors to residential.
- "It takes the panic out of it."
2. Bonus: What we're watching
The next potential data center conversion is the former Star Tribune printing plant on the edge of the North Loop.
- The news organization is selling the building after moving printing to Iowa in December.
Colliers Minneapolis real estate broker John McCarthy told Axios that the plant already has significant electrical infrastructure and tall ceilings — ideal for data centers.
- The rest of the building could be repurposed for other commercial uses.
Zoom out: That's what's happening in Kansas City, where the similarly sized Kansas City Star printing plant was modified into a data center and coworking space.
- The cost of that 100 megawatt project: $1 billion.
Yes, but: Don't expect data centers to completely transform downtowns. Many buildings don't have the infrastructure, and higher floors in buildings can't typically support the heavy equipment.
- "It's all about power," McCarthy said. "Can you get power into the building? Unless there is an existing data center that you could expand, or you have a larger footprint, I think it's very challenging to just take a building and convert it to a data center."
3. The Spoon: More U hockey turnover
4. PSA: Don't wait 'til 50
Colorectal cancer cases in Minnesotans under 50 have risen by roughly 80% since the early 2000s, per federal data.
Why it matters: Colorectal cancer is now the deadliest cancer for Americans under 50, per new research in JAMA.
By the numbers: In Minnesota, cases in people under 50 jumped from around 6 per 100,000 people in the early 2000s, to 10.7 in 2022 — per NCI and CDC data.
The big picture: The rise comes as incidence rates of many other cancers are either stable or going down, raising questions about causes, risk factors and preventive measures.
The bottom line: The U.S. Preventive Services Task Force lowered its recommended starting age for screening from 50 to 45 in 2021, meaning most insurers are now required to cover it starting at that age.
You don't want to miss out
5. 🗒️ 1 "phew" to go: Not a real ticket
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