With key bills in limbo, advocates push for more data center oversight

Environmental advocates convened at the Minnesota State Capitol on Earth Day, April 22, demanding increased legislative oversight for hyperscale data centers. The rally, led by groups like the Coalition for Responsible Data Center Development, focused on two key legislative proposals: a two-year moratorium on hyperscale data center construction and a statewide ban on non-disclosure agreements (NDAs) for local governments involved in such projects. The proposed NDA ban, which would apply to all local government dealings but gained traction due to concerns over data center secrecy, secured bipartisan support and passed the Senate as part of a larger omnibus bill. However, its path in the House of Representatives remains uncertain. House GOP leaders, including House Leader Harry Niska, R-Ramsey, have indicated that the bill missed procedural deadlines, leading to accusations from co-author Rep. Drew Roach, R-Farmington, that the move was a "strategic ploy to kill the bill." An amendment requiring public hearings on data center proposals also faces an unclear future. Facing legislative gridlock, advocates are exploring alternative avenues. Cathy Johnson, president of the Coalition for Responsible Data Center Development in Farmington, announced the filing of a lawsuit against the city, citing unresponsive local officials. Senator Jen McEwen, DFL-Duluth, lamented the inability to even secure a hearing for her proposed two-year data center moratorium bill, despite significant public interest. Conversely, some lawmakers, like Sen. Andrew Mathews, R-Princeton, cautioned against singling out the data center industry with restrictive legislation. He argued that data centers are essential infrastructure for modern technology and AI, and that Minnesota should aim to be a data center-friendly state to reap economic benefits like jobs and tax revenue, rather than driving development to neighboring states.