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 as of 2026-03-12
Bad for everyday people — on our 1–10 scale, 1 hurts and 10 helps.
What it does
Data centers would not pay sales tax on electricity and would be ignored in water and solar rules, shifting costs to other ratepayers.
What it means for you
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.
Who it's for
Data centers
Why it scores 2/10 — the receipts
- Accountability (hurts) — exemptions reduce oversight. data centers not subject to water and tax rules
- Rights & Protections (hurts) — limits consumer protections. tax and water rule exemptions favor data centers over ratepayers
- Who Bears the Cost (hurts) — cost shifts to other electricity users. lost tax revenue may be covered by higher rates for the public
- Process Transparency (hurts) — bill introduced with limited public input. early stage, no hearings noted
- Funding Tilt (hurts) — reduces state revenue. sales tax exemption cuts revenue that could fund services
Who's behind it
Republican-sponsored (3R / 0D)