New data center moratorium established, and Public Utility Commission required to submit a report

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.
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DATA CENTER MORATORIUM.
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(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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(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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(c) In addition to assessing various possible scenarios for data center development, the

report must:

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(1) include findings with respect to:

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(i) data center energy usage;

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(ii) data center water usage;

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(iii) data center metals usage;

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(iv) localized impacts by data centers;

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(v) data center impacts on federal- and state-listed species, and species of special concern;

and

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(vi) data center impacts on Tribal Nations' treaty rights, resources, and cultural practices;

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(2) analyze how and for what purpose data centers built in Minnesota are being used;

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(3) analyze the economic impact data centers have at the local level. The analysis must

include the impact on:

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(i) employment;

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(ii) property taxes; and

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(iii) economic activity;

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(4) analyze the economic impact data centers have at the state level. The analysis must

include:

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(i) the amount of income tax revenue generated from jobs created by data centers;

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(ii) the amount of tax expenditures, as defined in section 270C.11, subdivision 6, provided

to data centers; and

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(iii) other potential economic impacts;

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(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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(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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(ii) the cumulative impacts on water use, noise, and light; and

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(6) analyze other data center-related risks that are identified through no fewer than two

public comment periods.

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(d) The commission must consult with Minnesota Tribal governments when creating

the report.

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(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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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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