SF 4298

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/10/2026 09:51 a.m.

A bill for an act
relating to energy; establishing a moratorium on new data centers; requiring the
Public Utility Commission to submit a report.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin DATA CENTER MORATORIUM.
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new text begin (a) For the purpose of this section, "data center" has the meaning given in Minnesota
Statutes, sections 216B.02, subdivision 11. Data center includes a qualified large-scale data
center, as defined in section 297A.68, subdivision 42, paragraph (e).
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new text begin (b) The state or a local government must not issue a permit, including a conditional use
permit, for a data center until one calendar year after the Public Utility Commission submits
a comprehensive report that assesses various possible scenarios for data center development
in Minnesota. The report must be submitted to the chairs and ranking minority members of
the legislative committees and divisions with jurisdiction over energy and environment no
later than July 1, 2027. If the report is not completed by July 1, 2027, the commission may
extend the submission date to no later than January 1, 2028.
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new text begin (c) In addition to assessing various possible scenarios for data center development, the
report must:
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new text begin (1) include findings with respect to:
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new text begin (i) data center energy usage;
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new text begin (ii) data center water usage;
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new text begin (iii) data center metals usage;
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new text begin (iv) localized impacts by data centers;
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new text begin (v) data center impacts on federal- and state-listed species, and species of special concern;
and
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new text begin (vi) data center impacts on Tribal Nations' treaty rights, resources, and cultural practices;
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new text begin (2) analyze how and for what purpose data centers built in Minnesota are being used;
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new text begin (3) analyze the economic impact data centers have at the local level. The analysis must
include the impact on:
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new text begin (i) employment;
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new text begin (ii) property taxes; and
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new text begin (iii) economic activity;
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new text begin (4) analyze the economic impact data centers have at the state level. The analysis must
include:
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new text begin (i) the amount of income tax revenue generated from jobs created by data centers;
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new text begin (ii) the amount of tax expenditures, as defined in section 270C.11, subdivision 6, provided
to data centers; and
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new text begin (iii) other potential economic impacts;
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new text begin (5) identify suitable locations for data centers that minimize disruption to residential
areas, limit the impacts on residential utility infrastructure, and ensure data centers are not
concentrated in one region. When considering suitable locations, the report must consider:
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new text begin (i) whether existing infrastructure is available and suitable for data center use, in order
to eliminate the need to construct new infrastructure; and
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new text begin (ii) the cumulative impacts on water use, noise, and light; and
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new text begin (6) analyze other data center-related risks that are identified through no fewer than two
public comment periods.
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new text begin (d) The commission must consult with Minnesota Tribal governments when creating
the report.
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new text begin (e) A third-party contractor hired to develop the report must complete a conflict of
interest evaluation to ensure the contractor does not work for or receive funding from a data
center developer.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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