|
December 9 at 6pm via Zoom! Most of the recent articles and webinars on data centers focus on their energy use, but there is another significant concern: Water use. The reality is, in this modern gold rush, there are more proposed hyperscale data centers than our water resources can support. These proposed projects don’t fit into our permitting and regulatory systems. CURE is a leader on the rapidly emerging issues around data center development. As a leader on the rapidly emerging issues around data center development in the upper Midwest and nationally, CURE's Peg Furshong and Sara Mooradian will share lessons learned about how a lack of transparency harms communities across the country. The reality is, in this modern gold rush, there are winners and losers, and currently there are more proposed hyperscale data centers than our infrastructure and resources can support. These proposed projects don’t fit into our permitting and regulatory systems. We will look at why this matters for our communities, with a focus specifically on water. Join us on Tuesday, Dec. 9th, 6 pm CST to learn more. Registration is required for this meeting. All who register will receive a link to the recording of the meeting.  Peg Furshong and Sara Mooradian
Sarah Mooradian
Government Relations & Policy Director Sarah works on issues related to false climate solutions, rural electric cooperatives, siting and local power, clean transportation, and natural and working lands, participating in processes before state agencies like the Public Utilities Commission and at the state legislature. Previously, Sarah clerked for the Minnesota Court of Appeals. She has also worked on projects concerning tribal rights and land management, northern Minnesota mining, and New England’s surface water use. Sarah is a graduate of the University of Minnesota with degrees in Journalism and Sociology and Vermont Law and Graduate School with a J.D. and a Master of Environmental Law and Policy. She is passionate about protecting the environment and believes that success comes, in part, from changing both public policy and societal attitudes about nature. Peg Furshong Constituent Relations & Special Projects Peg is responsible for CURE’s Constituent Relations and Special Projects. These projects include water sustainability, landowner and community engagement for CURE’s NO Carbon Pipelines Campaign and coordinating outdoor engagement. Previously, Peg built the organization’s nature-based educational and experiential engagement programs, including initiatives like the Tallgrass Prairie BioBlitz and Freshwater Mussel Field Days. She also established CURE’s lasting partnership with the Minnesota Master Naturalist Program, where she continues to serve as a volunteer instructor. Peg is a graduate from Montana State University-Billings with a Master of Science in Education Leadership with an emphasis in Information, Process & Communication (IPC). She is a volunteer Commissioner for the Greater Minnesota Regional Parks and Trails Commission. In 2025, she was appointed to the Minnesota Attorney General’s Task Force on the Future of Minnesota’s Water. CURE is a rurally based nonprofit that protects and restores resilient communities and landscapes by harnessing the power of the people who care. Learn more about CURE here! Data Center Conference brings together developers, local officials and environmental groups11/15/2025
On November 12, the Southern Minnesota Initiative Foundation and Region Nine Planning Comission co-sponsored a conference on data centers. The event, co-hosted by Benya Kraus, president and CEO of Southern Minnesota Initiative Foundation and Sabri Fair, environment and sustainability planner for the Region Nine Planning Commission, brought together legislators, local officials, researchers and utility leaders to discuss how communities can prepare for both the opportunities and the challenges of this fast-expanding industry. The Mankato Free Press reports that Kraus opened the forum by outlining its purpose — to educate local leaders and residents about data center technologies, the infrastructure demands they bring and how to plan collectively for sustainable growth. “We’re not holding this event to convince you of one way or another, but to expose intentionally a range of different perspectives,” Kraus said. “Today is the start of the conversation.”  Senator Nick Frantz addresses the group. Standing in the background is Benya Kraus, and seated front is Sabri Fair. Photo - Mankato Free Press One message was clear — as data centers expand across Minnesota, communities face a pivotal moment to define how this industry will grow, with an emphasis that communities need reliable data, proactive planning and strong local voices in decision-making. Environmental groups engaged on the topic: MCEA webpage on data centers Coalition for Responsible Data Center Development More to be added in this section Text of MFP article: NORTH MANKATO — A packed auditorium at the South Central College North Mankato campus gathered Wednesday afternoon for a regional forum on the growing wave of conversations surrounding data center development across Minnesota.
The event, co-hosted by Benya Kraus, president and CEO of Southern Minnesota Initiative Foundation and Sabri Fair, environment and sustainability planner for the Region Nine Planning Commission, brought together legislators, local officials, researchers and utility leaders to discuss how communities can prepare for both the opportunities and the challenges of this fast-expanding industry. Kraus opened the forum by outlining its purpose — to educate local leaders and residents about data center technologies, the infrastructure demands they bring and how to plan collectively for sustainable growth. “We’re not holding this event to convince you of one way or another, but to expose intentionally a range of different perspectives,” Kraus said. “Today is the start of the conversation.” The session was structured around two panels exploring technical foundations, environmental impacts and strategies for community benefit. Mechanical engineer Thom Jackson defined data centers simply as “a room full of computers” that are essential facilities powering modern digital life — from streaming services and online banking to artificial intelligence. He explained the range of data center types, from small enterprise operations to massive hyperscale campuses, and the resources required to operate them, including large-scale energy and cooling systems. Economic potential meets environmental concern In a survey conducted at the beginning of the event, attendees were asked what potential benefits they saw data centers and artificial intelligence bringing to their communities. Responses highlighted employment opportunities, economic advancement and expanded tax revenue as top advantages. When asked about concerns, however, the responses told another side of the story — water usage, energy demand and environmental impacts topped the list. That tension between growth and sustainability carried throughout the day’s discussions. “Water in our area is a common-pool resource,” Andi Sutton, executive director of Southeast Regional Sustainable Development Partnerships said of the Zumbro River Watershed serving southeast Minnesota. “Right now, decisions about water use are very siloed. One of the questions that our city administrator leaders are bringing is, ‘how can we make better collective decisions about where and how data centers are sited?’” Current legal debates were also discussed, including two lawsuits in Minnesota challenging the use of Alternative Urban Areawide Reviews for evaluating large industrial developments — one of them being against the city of North Mankato. Tom Hagen of North Mankato asked panelists how these processes can be more transparent to the public. “I think the problem here that we’re seeing with data centers in particular, is how large they are. These are hyperscale data centers. When you add in this level of secrecy, that’s where people are struggling,” said Sarah Mooradian, government relations and policy director for CURE, an environmental advocacy group. “There’s an element that we’re seeing where there’s at least the perception of conflict.” Carrie Jennings, research and policy director for the Freshwater Society, reminded attendees that water management is already a pressing issue. She referenced a 2009 report finding that the Mt. Simon aquifer, southern Minnesota’s primary water resource, was being used faster than it could recharge. Jennings also raised concerns about transparency, describing how some cities under non-disclosure agreements with high water-use companies excluded residents. “There’s a tension here,” Jennings said. “How can we balance economic development with the need to ensure future water availability for our communities and ecosystems? Stakeholder participation is the piece that’s most often missing, especially in this development process.” Legislative developments Minnesota Senator Nick Frentz said Minnesota’s goal of 100% clean energy by 2040 means as data center growth accelerates, they must rely on renewable power. “We have some of the toughest environmental regulations in the country, and we are proud of that,” Frentz said. “We also have these economic opportunities which are profound. As legislators, we have to balance the budget.” Minnesota currently has 41 data centers operating across the state and Frentz said electricity demand could double within two decades. New legislation now requires these facilities to report water usage twice a year, with Frentz calling it “landmark legislation.” “The water in the largest of data centers uses above 100 million gallons a year,” Frentz said. “But we have a long history in Minnesota of protecting water.” He added that the Department of Natural Resources and the Public Utilities Commission now have stronger roles in permitting, with authority to require aquifer tests and to consider community and environmental impacts before approving projects. Planning for growth and community benefit Thomas Lambrecht with Great River Energy, Andy Wilke with Greater Mankato Growth along with Mooradian discussed how cities can navigate confidentiality agreements during early talks with developers, emphasizing that open communication can reduce public distrust and improve collaboration. Sustainable design was identified as essential to minimizing long-term environmental costs. “We definitely promote and work with all customers to understand sustainability options. Water conservation is one of those things,” Lambrecht said, noting some of the “biggest challenges in data center development” include landowner control, public perception, regulatory issues and political support.
But they also added new regulations on the booming data center industry aimed at protecting the environment, including the state’s water supply and climate goals, as well as electricity customers. The explosion of artificial intelligence and cloud computing has spurred a building boom of massive facilities that store computer servers and equipment. The largest “hyperscale” data centers can consume millions of gallons of water a year, and use as much electricity as the entire city of Minneapolis. Some environmental and citizen groups who pushed for tougher rules on data centers don’t think the bill goes far enough. “It represents just the start to actually effectively addressing the risk that data centers pose to Minnesotans,” said Aaron Klemz, chief strategy officer for the Minnesota Center for Environmental Advocacy. The legislation will require data center developers to connect with the Minnesota Department of Natural Resources earlier to make sure a proposed location has an adequate water supply. State Sen. Nick Frentz said data centers will need to share more information about how much water they'll use. "Nowhere in the country do Google, Meta, Amazon have to report on water in quite this way,” said Frentz, DFL-North Mankato. “So I think it is nation-leading, and I think rightly so.” Also in the bill: Utilities can’t pass the cost of supplying electricity to data centers onto other customers, or use the growth of data centers as an excuse to avoid meeting the state’s mandate for carbon-free electricity by 2040. “That is the state’s standard for our clean energy goals. It’s really the bedrock rule that we want these data centers to understand,” Frentz said. Large data centers will be required to pay $2 million to $5 million a year into an account to help low-income Minnesotans weatherize their homes and conserve energy. State Rep. Patty Acomb, who pushed for tougher rules for data centers, said the bill includes about 80 percent of what she wanted. But she’s disappointed it doesn’t require an in-depth environmental review of new data centers. "If you have a facility that big, you need to also be looking at the full environmental impacts,” said Acomb, DFL-Minnetonka. The bill doesn’t include setback requirements, height limits or other protections for people living near large data centers, such as one proposed to be built on a former golf course in Farmington. And it doesn’t stop cities from signing non-disclosure agreements that prevent them from sharing information about the projects, Klemz said. “We think there needs to be much more rigorous and upfront disclosure to the public about what is being proposed in their community,” he said. Environmental groups also say the water regulations largely reflect what's already in the law, rather than adding new protections. Data centers that use more than 100 million gallons of water a year must consider using water conservation technology, such as closed-loop systems that recycle water for cooling. But those measures are not required, said Sarah Mooradian, government relations and policy director for the nonprofit Clean Up the River Environment, or CURE. “There’s nothing in this bill that says a data center would have to employ any type of water conservation or efficient use of water, or even explain why they maybe chose one method over another,” Mooradian said. CURE and other environmentalists also wanted the Legislature to prevent large data centers from avoiding scrutiny by using water provided by cities’ municipal systems, instead of seeking their own water-use permit. But the bill doesn’t stop this practice. The compromise didn't entirely satisfy supporters of data centers, either. Labor unions that view data centers as job creators are happy lawmakers extended a sales tax exemption on computer servers and other equipment for 35 years. It had been set to expire in 2042. But the legislation takes away another sales tax break on the electricity that data centers use. That will make Minnesota less competitive for projects, said state Rep. Shane Mekeland, R-Clear Lake, who points out that Amazon recently suspended plans to build a large data center in his district. “They’re literally going to the neighboring states that extended that sales tax energy exemption weeks before we killed it off,” Mekeland said. Some lawmakers didn’t want to see any tax breaks extended to data centers, which are often owned by some of the world’s biggest technology companies. “The reason that I’m going to be a no on this bill is because I am anti-tax breaks for billionaires,” said Rep. Athena Hollins, DFL-St. Paul, during the floor debate. Frentz said the question shouldn’t be whether the companies’ owners are benefitting, but rather, “what’s best for Minnesota.” Data centers provide thousands of well-paying jobs and pay millions in local taxes, he said. “And with proper environmental protection — as every other state in the country is looking at — we want to encourage the development of these, just like we would any business,” Frentz said. The debate over data centers is likely to continue at the state Capitol. Acomb said she plans to try again to pass tougher language. In the meantime, Minnesota’s cold climate, available renewable energy and financial incentives likely will continue to attract data centers. At least 11 major ones are proposed to be built in Minnesota, most in the southern Twin Cities suburbs. “I think we have lots of reasons that data centers will look to come here, and the tax cuts [are] just one more,” Acomb said. The following bill summary was prepared by Jim Stark, Director of the Legislative Subcommittee on Minnesota Water Policy:
Data centers house a technology company’s information technology hardware. They run the internet and mobile applications, and they are getting bigger and use more electricity,` and more water as a cooling agent for their equipment. With an influx of proposed data centers, and other water-intensive development in Minnesota, the siting and design of these facilities is critical to the future of drinking water supplies and aquatic ecosystems. However, the Omnibus Environment Bill included funding for a GIS platform to identify sites with the least amount of conflict for complex development projects. Rep. Patty Acomb (DFL-Minnetonka) was a lead legislator focusing on data center issues as co-chair of the House Energy Finance and Policy committee. Rep. Acomb, Sen. Ann Johnson Stewart (DFLPlymouth) and others co-authored HF3007/SF3320, which proposed a suite of provisions for increased oversight of water-intensive projects and laid the groundwork for a data center bill that passed during the special session. Data Center bill (HF16/SF19) – The special session agreement between leaders included a standalone data center bill, HF16. This bill included energy and water provisions, as well as definitional and policy provisions around hyperscale data centers, and it passed the House 85-43 and the Senate 40-6. In one of its final acts of the 2025 special session, the House passed a bill setting environmental and energy regulatory requirements for data centers and modifying their sales and use tax exemptions. Sponsored by Rep. Greg Davids (R-Preston), SSHF16 was passed 85-43 and sent to the Senate where it was passed 40-26 and was signed by the Governor. Among the bill’s provisions, it would: • establish annual fees linked to a large-scale data center’s peak electricity demand of between $2 million and $5 million. • extend the state’s sales tax exemption for software and information technology equipment to largescale data centers to 35 years. • require pre-application evaluation of projects using more than 100 million gallons of water per year and setting permit conditions. • institute prevailing wage requirements for laborers and mechanics constructing or refurbishing largescale data centers. • require data center inquiries to be referred to the Department of Employment and Economic Development’s Minnesota Business First Stop program. • allow the Public Utilities Commission to approve, modify or reject tariff or energy supply agreement with a data center. • require each public utility to offer a clean energy and capacity tariff for commercial and industrial customers. • include large-scale data centers in the state’s solar energy standard. • exempts large-scale data centers from requirements under an energy conservation optimization plan; and • establish that large-scale data centers must attain certification under one or more sustainable design or green building standards. HF16 also created a formal DNR preapplication review process for data centers planning to use over 100 million gallons of water annually. The evaluation is required before a permit application is filed. HF16 establishes permit conditions for water use permits for data centers consuming more than 100 million gallons of water per year. These conditions include requiring protection for public welfare, water conservation practices, and conflict resolution for water use; an aquifer test can also be required as needed. |
|||||||
| LWV Upper Mississippi River Region | UMRR blog |
RSS Feed