1.1 A bill for an act
1.2 relating to energy;
establishing a moratorium on new data centers; requiring the
1.3 Public Utility Commission to
submit a report.
1.4 BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. DATA CENTER
MORATORIUM.
1.6 (a) For the purpose of this section, "data
center" has the meaning given in Minnesota
1.7 Statutes, sections
216B.02, subdivision 11. Data center includes a qualified large-scale data
1.8 center, as defined in
section 297A.68, subdivision 42, paragraph (e).
1.9 (b) The state or a
local government must not issue a permit, including a conditional use
1.10 permit, for a data
center until one calendar year after the Public Utility Commission submits
1.11 a comprehensive report
that assesses various possible scenarios for data center development
1.12 in Minnesota. The report
must be submitted to the chairs and ranking minority members of
1.13 the legislative
committees and divisions with jurisdiction over energy and environment no
1.14 later than July 1, 2027.
If the report is not completed by July 1, 2027, the commission may
1.15 extend the submission
date to no later than January 1, 2028.
1.16 (c) In addition to
assessing various possible scenarios for data center development, the
1.17 report must:
1.18 (1) include findings
with respect to:
1.19 (i) data center energy
usage;
1.20 (ii) data center water
usage;
1.21 (iii) data center metals
usage;
2.1 (iv) localized impacts
by data centers;
2.2 (v) data center
impacts on federal- and state-listed species, and species of special concern;
2.3 and
2.4 (vi) data center
impacts on Tribal Nations' treaty rights, resources, and cultural practices;
2.5 (2) analyze how and
for what purpose data centers built in Minnesota are being used;
2.6 (3) analyze the
economic impact data centers have at the local level. The analysis must
2.7 include the impact on:
2.8 (i) employment;
2.9 (ii) property taxes;
and
2.10 (iii) economic activity;
2.11 (4) analyze the economic
impact data centers have at the state level. The analysis must
2.12 include:
2.13 (i) the amount of income
tax revenue generated from jobs created by data centers;
2.14 (ii) the amount of tax
expenditures, as defined in section 270C.11, subdivision 6, provided
2.15 to data centers; and
2.16 (iii) other potential
economic impacts;
2.17 (5) identify suitable
locations for data centers that minimize disruption to residential
2.18 areas, limit the impacts
on residential utility infrastructure, and ensure data centers are not
2.19 concentrated in one
region. When considering suitable locations, the report must consider:
2.20 (i) whether existing
infrastructure is available and suitable for data center use, in order
2.21 to eliminate the need to
construct new infrastructure; and
2.22 (ii) the cumulative
impacts on water use, noise, and light; and
2.23 (6) analyze other data
center-related risks that are identified through no fewer than two
2.24 public comment periods.
2.25 (d) The commission must
consult with Minnesota Tribal governments when creating
2.26 the report.
2.27 (e) A third-party
contractor hired to develop the report must complete a conflict of
2.28 interest evaluation to
ensure the contractor does not work for or receive funding from a data
2.29 center developer.
2.30 EFFECTIVE DATE. This
section is effective the day following final enactment.
