Data centers can be built responsibly
The article, an opinion piece by Bill Lindeke, argues that Minnesota should strategically embrace data center development, addressing public opposition over water, electricity, and noise concerns. It suggests that with proper planning, innovative cooling technologies, and policy frameworks, data centers can provide significant economic benefits and tax revenue for the state. The author advises against moratoriums, advocating instead for responsible development that addresses past issues and community needs.
Urban geographer Bill Lindeke, in a MinnPost commentary, argues that Minnesota should adopt a balanced and responsible approach to data center development, countering the prevailing negative sentiment that has made them "politically toxic" issues in other states like Texas and Pennsylvania. Lindeke contends that public discourse in Minnesota often conflates all data centers with AI tech giants and overlooks the diverse nature of these facilities, many of which serve less controversial software companies. He highlights a failed deal to sell the Minnesota Star Tribune printing plant for a data center in Downtown Minneapolis's North Loop, noting that while poorly planned projects are detrimental, well-structured deals could provide crucial tax base growth for cities facing declining commercial real estate values.
Lindeke addresses key public concerns: water and electricity usage. He explains that while older data centers consumed significant water with air cooling, newer technologies like direct-to-chip and immersion cooling (pioneered by Rochester-based LiquidCool Solutions) drastically reduce water requirements. For electricity, he references research from the Electric Power Research Institute (EPRI) suggesting that data centers, if required to fund grid upgrades and curtail usage during peak times, could potentially stabilize or even reduce electricity prices, proposing a "Large Load Surcharge" as a mechanism.
The author emphasizes the economic benefits, citing examples where data centers have led to property tax cuts (Loudoun County, VA) or significant community benefit packages (Fredrick County, MD). He suggests Minnesota could leverage data center construction to boost its struggling construction industry and even facilitate environmental cleanups on Superfund sites. Lindeke concludes by advocating against blanket moratoriums, instead urging Minnesota to establish conditions that maximize benefits and ensure responsible development for its state and local communities.