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MN could join data center 'gold rush,' but at what cost?

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Monday, February 24, 2025   

The Minnesota Legislature and a regulatory agency will be busy this week weighing demands for large data centers.

Business leaders say this digital infrastructure is badly needed, but environmental voices are urging a cautious approach.

Hyperscale data centers, which store and process virtual information like medical records and website content, are popping up across the U.S. - with proposals surfacing in Minnesota.

A Public Utilities Commission hearing is scheduled Friday for a project in Becker.

Sarah Mooradian is the government relations and policy director with CURE, a nonprofit focusing on rural environmental issues. She said there are key considerations for this type of development.

"What are the things that Minnesotans can and should be asking for to make sure that our communities, our resources, are protected," asked Mooradian, "so that these data centers aren't coming in and taking up a ton of water, a ton of electricity?"

The centers can use roughly a half-million gallons of water each day to cool their systems.

Before Friday's hearing, a House bill will see debate Tuesday about making it easier for projects to add backup diesel generators. Opponents say that would conflict with Minnesota's emission goals.

Business groups want accommodations, noting these centers are critical components of today's economy.

The House bill would also shift environmental review duties to municipalities for these projects.

Skeptics say that would mean a less thorough analysis, as developers court officials with the potential of local jobs.

Mooradian said even if you don't live near a proposed data center, its impact should make you think about how their collective footprint will shape Minnesota in the years ahead.

"A thing that might not seem like it impacts you today," said Mooradian, "is going to start impacting you tomorrow."

Tech giant Amazon is behind the Becker project, and Friday's hearing could determine whether the company is exempt from a permit for backup generators.

The company insists those generators would run minimally and that, in the event of an outage, having them would benefit critical services like hospitals.



Disclosure: CURE contributes to our fund for reporting. If you would like to help support news in the public interest, click here.


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