Minnesota data center rules precede federal proposal

State rules are already in effect

Minnesota’s 2025 data center law requires hyperscale facilities to cover new electricity costs connected to their projects. The requirement applies to Meta’s data center campus in Rosemount, the state’s first hyperscale facility.

Xcel Energy spokesperson Kevin Coss said large customers must pay for the infrastructure upgrades needed to serve them, including power lines, substations and easements across private property. He said existing customers do not pay those costs.

Meta has not announced when the Rosemount facility will begin operating. Rosemount previously expected construction to be completed by the end of summer. State laws governing some applications of artificial intelligence are also in effect.

Federal and local action

The U.S. House passed the Ratepayer Protection Act, HR 9340, by a 417-3 vote on Sept. 16. Every member of Minnesota’s House delegation voted for it.

The bill would require states to consider a standard under which certain large electricity users, including data centers, cover power-system costs associated with their projects. Minnesota’s existing law already establishes a state requirement for hyperscale data centers.

State Sen. Erin Maye Quade, DFL-Apple Valley, said the House measure does not address other effects associated with large data centers, including water use, noise, light and added heat around facilities.

Local governments are also using temporary development pauses while they consider their own rules. At least 22 Minnesota cities and counties have adopted moratoriums on new hyperscale data centers through 2027. Those pauses do not create permanent standards, but they give local officials time to review land use and development policies before accepting new projects.