Senators Say Measure Will Create Jobs, Includes Guardrails to Protect State’s Water and Environment
SAINT PAUL, Minn. – Senators Ann Rest (DFL-New Hope), Nick Frentz (DFL-North Mankato), and Ann Johnson Stewart (DFL-Minnetonka) announced the Senate has passed and sent to the Governor their bill to set clear, responsible standards for data centers that locate in Minnesota – including those run by global tech giants.
The measure requires that data centers invest in the the communities where they locate, operate sustainably and contribute fairly to the state’s economy by guaranteeing high-paying union jobs. It also sets up environmental and energy-use safeguards to protect against overuse of local water supplies, allows the DNR to request pre-application information and have input regarding water volume, anticipated water quality or temperature requirements, and it requires centers to help Minnesota meet its clean-energy goals into the future.
“This bill puts Minnesota in charge of its future by with essential safeguards governing the operation of data centers in our state that will ensure that when they are built, they are built with us, not just near us,” said Senator Rest, the chief author of the bill. “It guides Minnesota’s technology future while safeguarding our natural resources and ensuring good-paying jobs. It also positions Minnesota as a leader in balancing economic growth with environmental stewardship and we are doing it on our terms.”
“In Minnesota, we are not just welcoming the data center industry; we are setting the standard for how it should grow,” said Sen. Frentz. “This legislation ensures that as tech giants expand into our state, they do so in a way that reflects our values: powering their operations with clean energy, creating high-paying union jobs, and making real investments in our communities. Over time, the bill could provide up to $20 million a year to help low-income Minnesotans weatherize their homes and lower their energy bills. We’re also leading the nation in responsible water stewardship, ensuring that industrial growth doesn’t come at the expense of Minnesota’s most precious natural resource. By holding corporations accountable and prioritizing sustainable development, we’re driving economic growth while protecting what makes Minnesota strong: our workers, our environment, and our future.”
“The environmental provision in this bill are a good start to safeguarding Minnesota’s water and natural resources,”said Senator Johnson Stewart. “More work will be done as we continue to see data centers build in minnesota, and I am confident that Minnesota will be a leader in the nation in establishing environomental standards and permitting requirments.”
The Senators said the bill will:
- Adjusts tax policy that makes it more attractive for data centers to locate in Minnesota
- Invests in weatherization and low-income energy efficiency through a new fund supported by data center fees.
- Creates a Clean Energy Tariff, allowing businesses to buy new, dedicated clean power—without raising costs for other customers.
- Adds water-use and permitting protections for high-demand data centers, including conservation and agency review.
- Protects existing clean energy standards and ensures utilities can’t shift data center costs to regular ratepayers.
- Ends automatic electricity tax break for data centers, but allows exemptions through new clean energy agreements.
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