Data centers get tax and water rule exemptions in Minnesota

Criteria for preapplication evaluations of water appropriations for data centers modified, data centers' electricity sales exempted in calculating a utility's solar energy standard, and data centers exempted from paying sales tax on electricity purchases.

Introduced· 2026-03-12

Who's it for

Who's it for: Data centers

What it means for you

2/10Hurts you

Bad for everyday people ·

Cost shiftImmunity

Draft summary, still being checked against the official bill text. Read the source to confirm.

If passed, data centers would not pay sales tax on electricity and would be ignored in water and solar rules, shifting costs to other ratepayers.

Our take

What we think, in plain words.

Citizens could see higher electricity bills because utilities will lose tax revenue and may raise rates for everyone else, while data centers keep profits and avoid extra regulation.

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The facts

What the bill actually says, no spin.

Bill would modify water appropriation criteria for data centers.
It would exempt data centers' electricity sales from utility solar energy standard calculations.
It would exempt data centers from paying sales tax on electricity purchases.
Sponsored by three Republican representatives.