Minnesota Legislators Propose Data Center Moratorium, NDA Ban
Minnesota lawmakers are proposing a two-year moratorium on data center construction and a ban on non-disclosure agreements with tech companies. This follows growing statewide concerns in both Minnesota and North Dakota regarding the rapid development and significant energy and water consumption of these facilities. Local communities have already taken action to oppose or halt data center projects.
Columnist Mike McFeely advocates for a halt on data center development, citing widespread concerns across North Dakota and Minnesota. Vern Thompson, a Democratic-NPL candidate for state agriculture commissioner in North Dakota, highlights the rapid and often opaque expansion of "multi-billion dollar corporations" in the state, which he claims pressure local governments. While proponents argue data centers bring jobs and aid in the AI race, critics raise significant environmental concerns due to their immense energy and water consumption, arguing they are essentially heavy industry lacking sufficient regulatory scrutiny.
Companies such as Applied Digital, Google, and Meta are deeply involved in data center development, with Applied Digital specifically constructing facilities in North Dakota, including Ellendale and Harwood. Opposition to these developments is bipartisan; multiple counties in rural North Dakota have enacted moratoriums, and Nobles County in southwestern Minnesota rejected a significant data center zoning change. McFeely argues it is time to halt this rapid development.
In response to these issues, some Minnesota legislators have introduced bills. These proposed legislations aim to outlaw non-disclosure agreements between tech companies and government entities, a point of contention in Applied Digital's Harwood project. Additionally, a bill proposes a two-year freeze on data center permitting statewide, intending to provide the state with time to establish comprehensive regulatory frameworks for the industry.