MN Legislature: A push for data center oversight but clear path uncertain

Environmental advocates gathered at the Minnesota State Capitol on Earth Day, demanding legislative action regarding large-scale data centers. Key demands included a two-year data center moratorium, which has not yet received a hearing, and a ban on nondisclosure agreements (NDAs) for local governments, aimed at increasing transparency around data center projects. The NDA ban, which was an amendment within a larger Senate State and Local Government omnibus bill, passed the Senate with bipartisan support. However, its path forward in the House is uncertain due to political gridlock and procedural issues. Republican authors, including Rep. Drew Roach, expressed disappointment after the bill was pulled from the General Register and referred to the House Judiciary Committee, which they believe was a tactic to prevent its passage. House Leader Harry Niska indicated the bill did not meet deadlines. Amid the legislative stagnation, the Coalition for Responsible Data Center Development in Farmington has taken legal action, filing a lawsuit against the city. Coalition President Cathy Johnson stated this move was a response to local officials' unresponsiveness and the state Legislature's gridlock, asserting that waiting until next year for legislative solutions is not an option. Senator Jen McEwen also noted the significant public interest in the proposed moratorium, which has been unable to secure a hearing. Conversely, some lawmakers, such as Senator Andrew Mathews, advocate for Minnesota to remain a data center-friendly state, emphasizing the economic benefits of job creation and tax revenue. He argued against singling out the industry and suggested that data centers would be built elsewhere if Minnesota imposes too many restrictions, leading the state to miss out on associated benefits.