Senate approves data-center bill with new energy, water and community-benefit rules

The Minnesota Senate voted to pass House File 16, a bill that modifies environmental and energy regulatory requirements for data centers in the state, after extended debate on permitting, water use, clean energy tariffs and community benefits.

The measure defines large data centers, expands the Department of Natural Resources' ability to review projects that would use more than 100,000,000 gallons of water a year, requires investor-owned utilities to offer clean-energy options and prohibits cost-shifting to residential and commercial ratepayers, and requires data centers to pay annual community-benefit fees of $2,000,000 to $5,000,000 depending on size. Senator Mary Kiffmeyer Rest, the bill’s author, introduced the proposal and described it as a response to a growing “new industrial age” focused on technology.

Proponents said the bill balances economic opportunity with protections. Senator Friends, addressing energy provisions, described three pillars: planning and ratepayer protections, clean-energy tariffs and…