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SF 4298

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

2025-2026 Regular Session Introduced by Doron Clark and 4 co-sponsors

Minnesota bill pauses new data center construction pending Public Utility Commission study of energy and resource impacts on state infrastructure.

Referred to Energy, Utilities, Environment, and Climate
#energy #environment #publicutilitiesandpublicutilitiescommission
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Bill Summary · SF 4298

Legislative bill overview

SF 4298 would establish a moratorium on new data center construction in Minnesota and require the Public Utility Commission (PUC) to submit a report analyzing the impacts of data centers on the state's energy infrastructure and resources. The bill appears designed to pause new facility development while state officials study the sector's effects on electricity supply, grid stability, and environmental concerns.

Why is this important

Data centers consume substantial amounts of electricity and water, and Minnesota has seen increased interest from tech companies in locating facilities here due to competitive power rates and cooling advantages. A moratorium would affect economic development and job creation in the sector, while the PUC report would inform future policy decisions about whether and how to allow data center expansion under specific conditions or restrictions.

Potential points of contention

  • Economic development vs. environmental concerns: Tech companies and economic development advocates may oppose the moratorium as harmful to job creation and investment, while environmental groups may support pausing expansion to assess resource impacts
  • Duration and scope: The bill's specifics on moratorium length, which data centers are affected (new only? expansions?), and exemption criteria are critical details that could determine its practical effect
  • Energy market implications: Data centers represent growing electricity demand; a moratorium could affect utility planning, grid investments, and energy prices, creating tension between long-term planning needs and precautionary approaches

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

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