The bill seeks to revise environmental and energy regulations for data centers in Minnesota by introducing new provisions that streamline the permitting process and promote clean energy initiatives. It establishes a policy for directing inquiries about data center permits to the Minnesota Business First Stop Program and defines "data center" and "qualified large-scale data center." The legislation outlines specific conditions for large water appropriation projects linked to data centers, particularly those with consumptive use exceeding 100 million gallons annually. Additionally, it requires public utilities to provide a clean energy and capacity tariff for commercial and industrial customers, ensuring that they cover the costs of new clean energy resources.

Moreover, the bill amends various sections of the Minnesota Statutes to create new definitions and exemptions for large customer facilities, introduces a fee structure for qualified large-scale data centers based on peak demand, and establishes an energy and conservation account funded by these fees. It mandates compliance with sustainable design standards for qualified large-scale data centers within three years of operation, with penalties for non-compliance, including the repayment of tax exemptions. The bill also expands tax exemptions for building materials and equipment for qualified large-scale data centers, promoting investment while ensuring adherence to environmental standards. The effective date for these changes is set for the day following final enactment, with certain tax law amendments taking effect for sales and purchases made after June 30, 2025.

Statutes affected:
Introduction: 103G.265, 103G.271, 216B.02, 216B.1691, 216B.2402, 216B.241, 297A.68, 297A.75