Cielo Digital Infrastructure data center, Chisago, Minnesota

Cielo Digital Infrastructure, founded in 2023 and owned by the Texas investment manager Arroyo Investors, said in June 2025 that it aims to develop 157 acres in Chisago, Minnesota, into a 300-megawatt data center campus. The Chisago site appeared in a list of Cielo's planned projects published alongside its 300-megawatt plan for Gaffney, South Carolina, with no address, timeline or investment figure given for Minnesota.

In spring 2026 residents came to the Chisago City Council, in Chisago County, Minnesota, twice asking for a moratorium on data centers. The council had earlier said a company once explored building a data center in the city but dropped it after Xcel Energy said the local power grid was inadequate.

City Administrator John Pechman said the Minnesota Supreme Court has deemed it illegal to arbitrarily exclude a legitimate business, so a one- or two-year moratorium could only let the city decide where and under what conditions data centers could go. Mayor Jeremy Dresel said the city had heard no current proposals and that Xcel had no plans to expand the area's grid for them; the council said it does not sign nondisclosure agreements with prospective businesses.

In August 2026 the Chisago County Board, after a public hearing, voted to impose a one-year moratorium on applications for data centers, or high utility use developments. Assistant County Attorney Jeffrey Fuge said it need not run the full year: whenever the planning commission has an ordinance ready to recommend, the commissioners can call a hearing. The moratorium covers only the parts of the county where the county holds zoning authority.

County planners are to use the pause to define data centers and draft conditions to control their effects, and the commissioners can end it early once the planning commission recommends an ordinance.