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HF 4888

New data center moratorium established, and Public Utility Commission required to submit a report.

2025-2026 Regular Session Introduced by Shelley Buck and 4 co-sponsors

The bill pauses new data center permits in Minnesota until the PUC completes a comprehensive report on environmental, economic, and social impacts, including tribal considerations.

Author added Fischer
#energy
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WeVote Research Nonpartisan
Bill Summary · HF 4888

Summary of HF 4888 (Minnesota) – 2025-2026 Session

Purpose and Intent

  • Establishes a moratorium on issuing new permits for data centers in Minnesota while the Public Utility Commission (PUC) conducts a comprehensive review of data center development and its broader impacts.
  • The moratorium remains in place until the PUC delivers a detailed report assessing several scenarios and effects, with a defined timeline for submission and potential extension if necessary.

Key Provisions

Moratorium on New Data Centers

  • No state or local permit, including conditional use permits, may be issued for a data center.
  • The moratorium remains in effect until one calendar year after the PUC submits its comprehensive report.
  • The report must be submitted to the chairs and ranking minority members of the relevant legislative committees no later than July 1, 2027. If the report is not completed by that date, the submission deadline can be extended to January 1, 2028.

Scope and Content of the PUC Report

The report must address and analyze:
1. Data Center Resource Use
- Energy usage by data centers
- Water usage
- Metals usage
- Localized impacts

  1. Environmental and Cultural Impacts

    • Impacts on federal and state listed species and species of concern
    • Impacts on Tribal Nations' treaty rights, resources, and cultural practices

  2. Utilization and Economic Analysis

    • How data centers built in Minnesota are used (purpose and operation)
    • Local economic impacts, including:
      • Employment
      • Property taxes
      • Economic activity
  • State-level economic impacts, including:
    • Income tax revenue from jobs created by data centers
    • Tax expenditures provided to data centers (as defined in law)
    • Other potential economic impacts

  1. Site Location and Regional Distribution

    • Identify suitable locations that minimize residential disruption, limit impacts on residential utility infrastructure, and avoid regional concentration
    • Considerations for locations:
      • Availability and suitability of existing infrastructure to reduce new infrastructure needs
      • Cumulative impacts on water use, noise, and light

  2. Risk Assessment and Public Consultation

    • Identify other data center–related risks identified through at least two public comment periods

Additional Provisions

  • The PUC must consult with Minnesota Tribal governments during the report’s development.
  • A third-party contractor will be hired to prepare the report and must pass a conflict-of-interest evaluation to ensure independence from data center developers.

Effective Date

  • The act, if enacted, becomes effective the day after final enactment.

Affected Parties and Impacts

  • Data Center Developers/Owners: Subject to a moratorium on new permits until the PUC report is completed and the moratorium lifted. The analysis in the report could influence policy, siting, and permitting in the future.
  • Local Governments: Prohibited from issuing new data center permits during the moratorium period; will be relevant for planning and permitting pipelines once the moratorium ends.
  • Public Utility Commission: Central role in producing the comprehensive report, coordinating with tribal governments, engaging with the public, and contracting a third-party facilitator with appropriate conflicts-of-interest safeguards.
  • Minnesota Residents and Communities: Potentially affected by how data centers impact local infrastructure, environment, housing, and regional development; the report aims to inform decisions that minimize adverse effects.
  • Tribal Nations: Explicit engagement and consideration of treaty rights, resources, and cultural practices.

Timeline and Procedural Notes

  • First Reading and Referral: Energy Finance and Policy Committee (April 9, 2026).
  • Submission Deadline for the PUC Report: No later than July 1, 2027 (with possible extension to January 1, 2028 if necessary).
  • Moratorium Duration: For one calendar year after the PUC submits the report (i.e., lifted after the report is delivered and the one-year period post-submission elapses).
  • Implementation: Effective upon final enactment of the bill.

Summary Assessment

HF 4888 is a precautionary, data-driven approach to data center development in Minnesota. By pausing new permits and mandating a substantive, evidence-based report on environmental, economic, and social impacts (including tribal considerations and site-specific siting analysis), the bill seeks to inform balanced policy decisions and future permitting frameworks for large-scale data infrastructure.

Compiled from official sources — confirm details with the bill’s official record.

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