Minnesota environmental group discusses data center impacts, proposes state moratorium

Kathryn Hoffman, CEO of the Minnesota Center for Environmental Advocacy (MCEA), recently addressed the Tuesday Group in Ely, discussing the growing trend of hyperscale AI data centers in Minnesota and their significant environmental implications. Hoffman explained that these facilities, which can consume as much electricity as entire cities, are distinct from traditional data centers due to their enormous size, modular scalability, and intensive resource demands, including vast amounts of electricity, water for cooling, and critical minerals for frequently replaced chips.

MCEA highlighted that while Minnesota currently hosts two hyperscale data centers operated by Meta in Rosemount, the state is becoming an attractive location for new developments as other states like Virginia and Texas reach capacity. Hoffman warned that even a few more hyperscale data centers could drastically increase statewide electricity demand, potentially raising energy bills and hindering Minnesota's 2040 carbon-free energy goal.

A key concern raised by Hoffman is the lack of transparency surrounding proposed data center projects, often due to city officials signing non-disclosure agreements (NDAs) with developers. She cited an instance in Hermantown where over 25 officials signed NDAs related to a proposed Google data center, an arrangement now entangled in both environmental review and zoning lawsuits. MCEA also noted that these NDAs often prevent crucial information, such as project type, energy, and water usage, from being included in environmental studies, rendering them ineffective.

In response to these challenges, MCEA is actively pursuing legislative changes. The organization aims to secure a two-year moratorium on data center projects through the next legislative session and advocate for a bill mandating additional sustainability and transparency requirements, including a mandatory Environmental Impact Statement (EIS), for facilities with high water consumption. Furthermore, there are multiple proposed bills to reduce current tax breaks for data center developers. State Representative Emma Greenman (DFL-Minneapolis) previously introduced a bill to ban municipal NDAs concerning public information, which stalled but is expected to reappear. Hoffman concluded by suggesting that data center companies should be required to provide their own green energy, ideally enough to allow for air-cooled systems, to mitigate environmental impacts.