Minnesota Legislature looks at strengthening guardrails for data centers amid rising environmental concerns

A fast-growing debate over large-scale data center proposals is stretching from the Minnesota Capitol to communities across the state. 

Lawmakers took up the issue Tuesday, considering the challenges city and county leaders face trying to balance economic opportunity with environmental impacts.

Inside the Capitol, lawmakers in the House heard a bill that would strengthen statewide guardrails for data center development. The bill calls for two things: a full environmental study and a permitting process to be required for data centers. 

This comes as another measure focused on transparency is stalled in the House. The bill would ban city officials from entering non-disclosure agreements with data center developers.

Supporters of the guardrails say the state needs clearer rules as proposals pop up more and more. 

In Hermantown, a Google data center is under an environmental review with public comment open through April.

In February, city leaders in Eagan passed a moratorium for one year as they study potential impacts to the environment.

In Farmington, neighbors are suing over environmental concerns. The group of residents in Farmington has filed suit to block construction, first on technical grounds but later added to the complaint with concerns about the environment.

The Minnesota Center for Environmental Advocacy has six pending lawsuits from Pine Island to Hermantown. They're asking for further study of impacts on air quality, water usage and energy grid strain.

Local officials are trying to balance economic development with rising concerns from residents.

Labor groups have continued to voice support for these projects, pointing to job creation.

The Minnesota Chamber of Commerce represents more than 6,000 businesses that say they want to enhance the state's economy and bills like the one heard Tuesday create additional hurdles.

Kathryn Hoffman is the executive director of the Minnesota Center for Environmental Advocacy and believes without statewide standards, confusion grows as proposals rapidly spread.

"The value of the legislature acting is we now have a uniform approach across the state," she said.

On Wednesday, a Senate committee is expected to hear a bill focused on banning non-disclosure agreements between city officials and data center developers. 

As lawmakers continue debating legislation and the Capitol, communities are working to learn more. Simply put, the data center debate in Minnesota is not slowing down.