Minnesota lawmakers squabble over data centers, possible environmental impacts (2025)

ST. PAUL — Minnesota lawmakers heard a bill on last week to change permitting processes for data centers in Minnesota as large companies like Amazon, Microsoft and Meta are making moves to build more data centers across the state.

The bipartisan bill, SF1393 , authored by Sen. Andrew Mathews, R-Princeton, aims to loosen the permitting processes for data centers, as Mathews said in committee on April 8, the state’s current permitting process limits how many generators data center facilities can have.

Data centers are facilities where organizations house computer systems and servers, and these centers require large amounts of electricity to keep these systems cool, according to Amazon . Currently, Facebook’s parent company, Meta, is building a facility in Rosemount , and both Microsoft and Amazon have purchased land for data centers in Becker, as reported by MPR.

“Nearly all current data centers use tier-two diesel generators, which are only permitted to run in emergencies or as part of routine maintenance testing,” Matthews said in committee on Tuesday, April 8. “This restriction prevents data centers from running their generators for any other reason.”

Matthew’s bill would require permits to be issued per building or generator rather than per data center site. Matthews said as the permitting process stands for generators, it caps total emissions as well. But his bill was met with frustration from his Democrat counterparts on Tuesday over the environmental concerns these data centers raise.

Sen. Jennifer McEwen, DFL Duluth, said she is concerned with how large corporations are influencing this legislation but not showing up in person to answer environmental-related questions. McEwen asked during the committee meeting on Tuesday if there was anyone in the audience from Amazon, “A lobbyist, an executive? Nobody? Nobody. Look around. Nobody has stepped up.”

Contributed / Minnesota Legislature

“We are swarmed with lobbyists paid six figures-plus, filling lawmakers' heads with ideas about what needs to happen for the corporations in our state, in our nation ... This is corporate welfare on steroids,” She said.

The U.S. Department of Energy released a 2024 report saying that data centers consumed about 4.4% of total U.S. electricity in 2023 and are expected to consume 6.7-12% of total U.S. electricity by 2028.

Some testifiers on Tuesday took issue with the water usage by data centers. NPR reported in 2022 that in order to keep computer systems cool, the average data center uses 300,000 gallons of water a day , roughly equal to the water use of 100,000 homes.

Mary Murphy / Forum News Service

“We are at a pivotal point, and our water resources are limited,” Avonna Stark, Minnesota State Director of Clean Water Action, said on Tuesday. “As we consider how to welcome multi-billion-dollar companies into Minnesota, we shouldn't be asking, 'How can we sacrifice enough to entice them?' But rather pose the question, 'How will these businesses be good neighbors and honor our environment and our residents?'”

In other data center legislation, Rep. Greg Davids, R-Preston, is proposing a sales tax break for large centers. Davids, chief author of bipartisan bill HF1277, said in the House Taxes committee on Feb. 27 that data centers bring economic opportunity to the state.

Contributed / Minnesota Legislature

"I think it was 2011, and I can't remember who came to me with this idea about these data centers that they were going to be the thing of the future and and Minnesota better get in it, or you're not going to be in it," Davids said. "So I thought it was a good idea to get Minnesota involved in this. We did, and ... it has been a tremendously successful program throughout the state, many jobs, many construction jobs."

The Revenue Department estimates that in one fiscal year, the exemption could reduce the general fund and Natural Resources and Arts Funds by a total of $20 million, according to a February analysis.

Contributed / Minnesota Legislature

Meanwhile, some Democratic lawmakers are looking to close some doors. HF2928 , authored by Rep. Patty Acomb, DFL-Minnetonka, would regulate water use, require a 65% carbon-free energy supply and impose fees for data centers.

Contributed / Minnesota Legislature

Another bill, HF3007 , authored by Rep. Peter Fisher, DFL-Maplewood, focuses on water usage by data centers. Fisher’s bill would allow the DNR to impose a stricter permitting application process for data centers anticipated to consume more than 100 million gallons of water per year or 250,000 gallons per day.

Matthew's bill was laid on the table in committee on Tuesday and Thursday as the committee ran out of time.

Mary Murphy joined Forum Communications in October 2024 as the Minnesota State Correspondent. She can be reached by email at mmurphy@forumcomm.com.