SF 5100

04/08/26  REVISOR  RSI/MG  26-08060       as introduced
  SENATE
  STATE OF MINNESOTA
  NINETY-FOURTH SESSION  S.F. No. 5100
  (SENATE AUTHORS: MATHEWS)
  DATE       D-PG  OFFICIAL STATUS
  04/13/2026      8000 Introduction and first reading
  Referred to Energy, Utilities, Environment, and Climate
1.1A bill for an act
1.2relating to data centers; modifying the criteria for preapplication evaluations of
1.3water appropriations for certain data centers; exempting certain data centers'
1.4electricity sales in calculating a utility's solar energy standard; exempting certain
1.5data centers from paying a fee; exempting certain data centers from paying sales
1.6tax on electricity purchases; providing for data center energy generation
1.7redundancy; amending Minnesota Statutes 2024, sections 116D.04, subdivision
1.84a; 216B.02, by adding a subdivision; 216B.243, subdivision 8; 216I.02, by adding
1.9a subdivision; 216I.07, subdivision 2; Minnesota Statutes 2025 Supplement, sections
1.10103G.265, subdivision 5; 216B.02, subdivision 12; 216B.1623; 216B.1691,
1.11subdivision 2f; 216B.72; 216I.07, subdivision 3; 297A.68, subdivision 42.
1.12   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.13Section 1. Minnesota Statutes 2025 Supplement, section 103G.265, subdivision 5, is
1.14   amended to read:
1.15Subd. 5. Preapplication evaluation of certain water appropriation projects. (a) This
1.16   subdivision applies to a data center, as defined in section 216B.02, subdivision 11, whose
1.17   proposed net increase in consumptive use exceeds 100,000,000 gallons per year and which
1.18   requires a permit amendment or a new individual permit.
1.19(b) In response to a contact from a data center regarding a project that is likely to be
1.20   subject to this subdivision, the department may request preapplication information from the
1.21   data center that is helpful in assisting the department to assess the factors affecting the ability
1.22   of a water source to meet a project's water use needs at a proposed location, including:
1.23(1) a project description;
1.24(2) the project's estimated water use rates and volumes for the maximum day, maximum
1.25   month, and average year;
Section 1.  1
04/08/26  REVISOR  RSI/MG  26-08060  as introduced
2.1      (3) the anticipated source of water; and
2.2      (4) water quality or temperature requirements.
2.3      (c) The department may request any additional information necessary from the data
2.4  center to assist it to assess the ability of a water source to meet a project's water use needs.
2.5      (d) The commissioner shall evaluate the information supplied under this subdivision
2.6  and shall respond in writing, which may be electronically transmitted, describing potential
2.7  water availability constraints at each proposed project site.
2.8      (e) In determining the impact of a potential project on water quality and quantity, the
2.9  commissioner may consult with the commissioners of health, agriculture, and the Pollution
2.10 Control Agency, and other state agencies.
2.11     (f) Any communication made or information exchanged under this subdivision between
2.12 a data center and a government agency, or between government agencies, is nonpublic data,
2.13 as defined in section 13.02, subdivision 9.
2.14     (g) None of the discussions, filings, or evaluations made under this subdivision preclude
2.15 or supplant environment review, preliminary well-construction approval, appropriation
2.16 permit review, or any other requirements under federal, state, or local law.
2.17     (h) For purposes of this subdivision, "net increase in consumptive use" means the
2.18 estimated net increase in annual water consumption by a data center after subtracting
2.19 documented reductions in consumption from the same water source by other entities that
2.20 occurred within the past ... years or are scheduled to occur within ... years of the date the
2.21 data center initiates operations.
2.22     (i) This section does not apply to a qualified large-scale data center, as defined in section
2.23 297A.68, subdivision 42, that:
2.24     (1) files an application on or before January 1, 2035, with a county, town, or municipality
2.25 for a permit or approval that is necessary to allow for construction; or
2.26     (2) is located in an eligible community, as defined in section 116J.55, subdivision 1.
2.27     EFFECTIVE DATE. This section is effective the day following final enactment.
2.28   Sec. 2. Minnesota Statutes 2024, section 116D.04, subdivision 4a, is amended to read:
2.29     Subd. 4a. Alternative review. (a) The board shall by rule identify alternative forms of
2.30 environmental review which will address the same issues and utilize similar procedures as
Sec. 2.  2
04/08/26  REVISOR  RSI/MG  26-08060  as introduced
3.1  an environmental impact statement in a more timely or more efficient manner to be utilized
3.2  in lieu of an environmental impact statement.
3.3      (b) Upon adoption by the responsible governmental unit of the environmental document
3.4  and plan for mitigation under an alternative urban areawide review process, and
3.5  notwithstanding additional environmental review that may otherwise be required for a
3.6  phased action, connected action, or project component that was not evaluated in the
3.7  alternative urban areawide review process, environmental review is complete and the
3.8  prerequisites under subdivision 2b are satisfied with respect to the anticipated residential,
3.9  commercial, warehousing, and light industrial development projects that are consistent with
3.10 development assumptions within the established boundaries of the geographic area to which
3.11 the alternative urban areawide review applies.
3.12     EFFECTIVE DATE. This section is effective the day following final enactment.
3.13   Sec. 3. Minnesota Statutes 2025 Supplement, section 216B.02, subdivision 12, is amended
3.14 to read:
3.15     Subd. 12. Qualified large-scale data center. "Qualified large-scale data center" has the
3.16 meaning given in section 297A.68, subdivision 42, paragraph (e).
3.17     EFFECTIVE DATE. This section is effective the day following final enactment.
3.18   Sec. 4. Minnesota Statutes 2024, section 216B.02, is amended by adding a subdivision to
3.19 read:
3.20     Subd. 13. Emergency backup generator. "Emergency backup generator" means a
3.21 stationary compressed ignition or spark ignition engine described under Code of Federal
3.22 Regulations, title 40, parts 60.4211(f) and 60.4243(d), respectively, installed with equipment
3.23 that prevents the flow of electricity to the electric grid.
3.24   Sec. 5. Minnesota Statutes 2025 Supplement, section 216B.1623, is amended to read:
3.25     216B.1623 CLEAN ENERGY AND CAPACITY TARIFF.
3.26     Subdivision 1. Tariff offer. The commission shall require each public utility to offer a
3.27 clean energy and capacity tariff for commercial and industrial customers. The clean energy
3.28 and capacity tariff shall require a special contract between the utility and one or more
3.29 customers that shall:
3.30     (1) be optional for participating customers;
Sec. 5.  3
04/08/26  REVISOR  RSI/MG  26-08060  as introduced
4.1      (2) permit participating customers to elect to serve some or all of their energy or capacity
4.2  usage from new clean energy or capacity resources as long as reliability is maintained;
4.3      (3) require the participating customers to pay all proportional costs associated with the
4.4  addition of the new clean energy or capacity resources, including any utility costs caused
4.5  by the addition of the new clean energy or capacity resources to the grid;
4.6      (4) develop an appropriate energy and capacity credit;
4.7      (5) prohibit cost shifting from the participating customers to other utility customers or
4.8  vice versa; and
4.9      (6) allow a utility with an applicable tariff on file to demonstrate their existing tariff's
4.10 compliance with this section.
4.11     Subd. 2. Exemptions. This subdivision does not apply to a qualified large-scale data
4.12 center that:
4.13     (1) files an application on or before January 1, 2035, with a county, town, or municipality
4.14 for a permit or approval that is necessary to allow for construction; or
4.15     (2) is located in an eligible community, as defined in section 116J.55, subdivision 1.
4.16     EFFECTIVE DATE. This section is effective the day following final enactment.
4.17   Sec. 6. Minnesota Statutes 2025 Supplement, section 216B.1691, subdivision 2f, is amended
4.18 to read:
4.19     Subd. 2f. Solar energy standard. (a) In addition to the requirements of subdivisions 2a
4.20 and 2g, each public utility shall generate or procure sufficient electricity generated by solar
4.21 energy to serve its retail electricity customers in Minnesota so that by the end of 2020, at
4.22 least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota is
4.23 generated by solar energy.
4.24     (b) For a public utility with more than 200,000 retail electric customers, at least ten
4.25 percent of the 1.5 percent goal must be met by solar energy generated by or procured from
4.26 solar photovoltaic devices with a nameplate capacity of 40 kilowatts or less.
4.27     (c) A public utility with between 50,000 and 200,000 retail electric customers:
4.28     (1) must meet at least ten percent of the 1.5 percent goal with solar energy generated by
4.29 or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or
4.30 less; and
Sec. 6.  4
04/08/26  REVISOR  RSI/MG  26-08060  as introduced
5.1      (2) may apply toward the ten percent goal in clause (1) individual customer subscriptions
5.2  of 40 kilowatts or less to a community solar garden program operated by the public utility
5.3  that has been approved by the commission.
5.4      (d) The solar energy standard established in this subdivision is subject to all the provisions
5.5  of this section governing a utility's standard obligation under subdivision 2a.
5.6      (e) It is an energy goal of the state of Minnesota that, by 2030, ten percent of the retail
5.7  electric sales in Minnesota be generated by solar energy.
5.8      (f) For the purposes of calculating the total retail electric sales of a public utility serving
5.9  fewer than 200,000 retail electric customers under this subdivision, there shall be excluded
5.10 retail electric sales to customers that are:
5.11     (1) served by a public utility with fewer than 200,000 retail electric customers and are:
5.12     (1) (i) an iron mining extraction and processing facility, including a scram mining facility
5.13 as defined in Minnesota Rules, part 6130.0100, subpart 16;
5.14     (2) (ii) a qualified large-scale data center; or
5.15     (3) (iii) a paper mill, wood products manufacturer, sawmill, or oriented strand board
5.16 manufacturer.; or
5.17     (2) a qualified large-scale data center that:
5.18     (i) files an application on or before January 1, 2035, with a county, town, or municipality
5.19 for a permit or approval that is necessary to allow for construction; or
5.20     (ii) is located in an eligible community, as defined in section 116J.55, subdivision 1.
5.21     Those (g) The customers identified in paragraph (f), clause (1) or (2), may not have
5.22 included in the rates charged to them by the public utility serving fewer than 200,000 retail
5.23 electric customers any costs of satisfying the solar standard specified by this subdivision.
5.24     (g) (h) A public utility may not use energy used to satisfy the solar energy standard under
5.25 this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may
5.26 not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the
5.27 solar standard under this subdivision.
5.28     (h) (i) Notwithstanding any law to the contrary, a solar renewable energy credit associated
5.29 with a solar photovoltaic device installed and generating electricity in Minnesota after
5.30 August 1, 2013, but before 2020 may be used to meet the solar energy standard established
5.31 under this subdivision.
Sec. 6.  5
04/08/26  REVISOR  RSI/MG  26-08060  as introduced
6.1      EFFECTIVE DATE. This section is effective the day following final enactment.
6.2    Sec. 7. Minnesota Statutes 2024, section 216B.243, subdivision 8, is amended to read:
6.3      Subd. 8. Exemptions. (a) This section does not apply to:
6.4      (1) cogeneration or small power production facilities as defined in the Federal Power
6.5  Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
6.6  paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
6.7  than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
6.8  any case where the commission has determined after being advised by the attorney general
6.9  that its application has been preempted by federal law;
6.10     (2) a high-voltage transmission line proposed primarily to distribute electricity to serve
6.11 the demand of a single customer at a single location, unless the applicant opts to request
6.12 that the commission determine need under this section or section 216B.2425;
6.13     (3) the upgrade to a higher voltage of an existing transmission line that serves the demand
6.14 of a single customer that primarily uses existing rights-of-way, unless the applicant opts to
6.15 request that the commission determine need under this section or section 216B.2425;
6.16     (4) a high-voltage transmission line of one mile or less required to connect a new or
6.17 upgraded substation to an existing, new, or upgraded high-voltage transmission line;
6.18     (5) conversion of the fuel source of an existing electric generating plant to using natural
6.19 gas;
6.20     (6) the modification of an existing electric generating plant to increase efficiency, as
6.21 long as the capacity of the plant is not increased more than ten percent or more than 100
6.22 megawatts, whichever is greater;
6.23     (7) a large wind energy conversion system, as defined in section 216I.02, subdivision
6.24 12, or a solar energy generating system, as defined in section 216I.02, subdivision 18, for
6.25 which a site permit application is submitted by an independent power producer under chapter
6.26 216I;
6.27     (8) a large wind energy conversion system, as defined in section 216I.02, subdivision
6.28 12, or a solar energy generating system, as defined in section 216I.02, subdivision 18,
6.29 engaging in a repowering project that:
6.30     (i) will not result in the system exceeding the nameplate capacity under its most recent
6.31 interconnection agreement; or
Sec. 7.  6
04/08/26  REVISOR  RSI/MG  26-08060  as introduced
7.1      (ii) will result in the system exceeding the nameplate capacity under its most recent
7.2  interconnection agreement, provided that the Midcontinent Independent System Operator
7.3  has provided a signed generator interconnection agreement that reflects the expected net
7.4  power increase;
7.5      (9) energy storage systems, as defined in section 216I.02, subdivision 6;
7.6      (10) transmission lines that directly interconnect large wind energy conversion systems,
7.7  solar energy generating systems, or energy storage systems to the transmission system; or
7.8      (11) relocation of an existing high voltage transmission line to new right-of-way, provided
7.9  that any new structures that are installed are not designed for and capable of operation at
7.10 higher voltage.; or
7.11     (12) a combination of emergency backup generators at a single site with a combined
7.12 capacity of 50,000 kilowatts or more that provides power to a data center and is eligible for
7.13 permitting as a single stationary source under Minnesota Rules, part 7007.0200, 7007.0250,
7.14 7007.1100, or 7007.1110 to 7007.1141.
7.15     (b) For the purpose of this subdivision, "repowering project" means:
7.16     (1) modifying a large wind energy conversion system or a solar energy generating system
7.17 that is a large energy facility to increase its efficiency without increasing its nameplate
7.18 capacity;
7.19     (2) replacing turbines in a large wind energy conversion system without increasing the
7.20 nameplate capacity of the system; or
7.21     (3) increasing the nameplate capacity of a large wind energy conversion system.
7.22     EFFECTIVE DATE; APPLICATION. This section is effective the day following
7.23 final enactment and applies to applications under Minnesota Statutes, section 216B.243,
7.24 that are pending before or submitted to the Public Utilities Commission on or after that date.
7.25   Sec. 8. Minnesota Statutes 2025 Supplement, section 216B.72, is amended to read:
7.26     216B.72 QUALIFIED LARGE-SCALE DATA CENTER FEE.
7.27     (a) Except as provided in paragraph (d), the commissioner must collect an annual fee
7.28 from the a qualified large-scale data center, on a schedule prescribed by the commissioner
7.29 and deposited must deposit the fee in the energy and conservation account established in
7.30 section 216B.241, subdivision 2a.
Sec. 8.  7
04/08/26  REVISOR  RSI/MG  26-08060  as introduced
8.1      (b) The fee is based on the a qualified large-scale data center's peak demand the utility
8.2  arranges to serve, reflecting the qualified large-scale data center's peak demand forecast
8.3  provided to the utility, expressed in megawatts (MW), as follows:
8.4  Peak Demand  Fee
8.5  (1) 100 to 250 MW  $2,000,000
8.6  (2) above 250 MW but below 500 MW  $3,000,000
8.7  (3) 500 MW but below 750 MW  $4,000,000
8.8  (4) 750 MW or greater  $5,000,000
8.9      (c) The fee data collected under this section must be treated as nonpublic data, as defined
8.10 under section 13.02, subdivision 9.
8.11     (d) This section does not apply to a qualified large-scale data center that:
8.12     (1) files an application on or before January 1, 2035, with a county, town, or municipality
8.13 for a permit or approval that is necessary to allow for construction; or
8.14     (2) is located in an eligible community, as defined in section 116J.55, subdivision 1.
8.15     EFFECTIVE DATE. This section is effective the day following final enactment.
8.16   Sec. 9. Minnesota Statutes 2024, section 216I.02, is amended by adding a subdivision to
8.17 read:
8.18     Subd. 5a. Emergency backup generator. "Emergency backup generator" has the
8.19 meaning given in section 216B.02, subdivision 13.
8.20     EFFECTIVE DATE. This section is effective the day following final enactment.
8.21   Sec. 10. Minnesota Statutes 2024, section 216I.07, subdivision 2, is amended to read:
8.22     Subd. 2. Applicable projects. The requirements and procedures under this section apply
8.23 to projects for which the applicant's proposal is:
8.24     (1) large electric power generating plants with a capacity of less than 80 megawatts;
8.25     (2) a combination of emergency backup generators designed to serve one person and
8.26 located on property owned or controlled by the person that is contiguous with the facility
8.27 the emergency backup generators serve;
8.28     (2) (3) large electric power generating plants that are fueled by natural gas;
8.29     (3) (4) high-voltage transmission lines with a capacity between 100 and 300 kilovolts;
Sec. 10.  8
04/08/26  REVISOR  RSI/MG  26-08060  as introduced
9.1      (4) (5) high-voltage transmission lines with a capacity in excess of 300 kilovolts and
9.2  less than 30 miles in length in Minnesota;
9.3      (5) (6) high-voltage transmission lines with a capacity in excess of 300 kilovolts, if at
9.4  least 80 percent of the distance of the line in Minnesota, as proposed by the applicant, is
9.5  located along existing high-voltage transmission line right-of-way;
9.6      (6) (7) solar energy systems;
9.7      (7) (8) energy storage systems; and
9.8      (8) (9) large wind energy conversion systems.
9.9      EFFECTIVE DATE; APPLICATION. This section is effective July 1, 2026, and
9.10 applies to applications under Minnesota Statutes, section 216I.07, that are pending before
9.11 or submitted to the Public Utilities Commission on or after that date.
9.12   Sec. 11. Minnesota Statutes 2025 Supplement, section 216I.07, subdivision 3, is amended
9.13 to read:
9.14     Subd. 3. Environmental review. (a) For the projects identified in subdivision 2 and
9.15 following the procedures under this section, the applicant must prepare and submit an
9.16 environmental assessment with the application. A draft of the environmental assessment
9.17 must also be provided to commission staff as part of the preapplication review under section
9.18 216I.05, subdivision 6. The environmental assessment must (1) contain information regarding
9.19 the proposed project's human and environmental impacts, and (2) address mitigating measures
9.20 for identified impacts. The environmental assessment for projects identified in subdivision
9.21 2, clause (2), must include a discussion of reasonable alternatives to the proposed project
9.22 that considers: (i) the appropriateness of the size and type of the proposed method of
9.23 generation compared to those of reasonable alternatives; (ii) the cost to the proposer of
9.24 energy that would be supplied by the project compared to the cost of energy that would be
9.25 supplied by reasonable alternatives; (iii) the effect of the proposed project upon the natural
9.26 and socioeconomic environments compared to the effect of reasonable alternatives; and (iv)
9.27 the expected reliability of the proposed facility compared to the expected reliability of
9.28 reasonable alternatives. The environmental assessment is the only state environmental
9.29 review document that must be prepared for the proposed project.
9.30     (b) If after the public meeting the commission identifies other sites or routes or potential
9.31 impacts for review, the commission must prepare an addendum to the environmental
9.32 assessment that evaluates (1) the human and environmental impacts of the alternative site
9.33 or route, and (2) any additional mitigating measures related to the identified impacts
Sec. 11.  9
 04/08/26  REVISOR  RSI/MG  26-08060  as introduced
10.1  consistent with the scoping decision made pursuant to section 216I.05, subdivision 10,
10.2  clause (2). The public may provide comments on the environmental assessment and any
10.3  addendum to the environmental assessment at the public hearing and comment period under
10.4  subdivision 4. When making the commission's final decision, the commission must consider
10.5  the environmental assessment, the environmental assessment addendum, if any, and the
10.6  entirety of the record related to human and environmental impacts.
10.7    Sec. 12. Minnesota Statutes 2025 Supplement, section 297A.68, subdivision 42, is amended
10.8  to read:
10.9      Subd. 42. Data centers. (a) Purchases of enterprise information technology equipment
10.10 and computer software for use in a qualified data center, a qualified refurbished data center,
10.11 or a qualified large-scale data center are exempt, except that computer software maintenance
10.12 agreements are exempt for purchases made after June 30, 2013. The tax on purchases exempt
10.13 under this paragraph must be imposed and collected as if the rate under section 297A.62,
10.14 subdivision 1, applied, and then refunded after June 30, 2013, in the manner provided in
10.15 section 297A.75. This exemption includes enterprise information technology equipment
10.16 and computer software purchased to replace or upgrade enterprise information technology
10.17 equipment and computer software in a qualified data center, a qualified refurbished data
10.18 center, or a qualified large-scale data center.
10.19     (b) Purchases of electricity used or consumed to operate a qualified large-scale data
10.20 center located in an eligible community, as defined in section 116J.55, subdivision 1, are
10.21 exempt.
10.22     (b) (c) For purposes of this subdivision, "qualified data center" means a facility in
10.23 Minnesota:
10.24     (1) that is comprised of one or more buildings that consist in the aggregate of at least
10.25 25,000 square feet, and that are located on a single parcel or on contiguous parcels, where
10.26 the total cost of construction or refurbishment, investment in enterprise information
10.27 technology equipment, and computer software is at least $30,000,000 within a 48-month
10.28 period. The 48-month period begins no sooner than July 1, 2012, except that costs for
10.29 computer software maintenance agreements purchased before July 1, 2013, are not included
10.30 in determining if the $30,000,000 threshold has been met;
10.31     (2) that is constructed or substantially refurbished after June 30, 2012, where
10.32 "substantially refurbished" means that at least 25,000 square feet have been rebuilt or
10.33 modified, including:
 Sec. 12.  10
 04/08/26  REVISOR  RSI/MG  26-08060  as introduced
11.1      (i) installation of enterprise information technology equipment; environmental control,
11.2  computer software, and energy efficiency improvements; and
11.3      (ii) building improvements; and
11.4      (3) that is used to house enterprise information technology equipment, where the facility
11.5  has the following characteristics:
11.6      (i) uninterruptible power supplies, generator backup power, or both;
11.7      (ii) sophisticated fire suppression and prevention systems; and
11.8      (iii) enhanced security. A facility will be considered to have enhanced security if it has
11.9  restricted access to the facility to selected personnel; permanent security guards; video
11.10 camera surveillance; an electronic system requiring pass codes, keycards, or biometric scans,
11.11 such as hand scans and retinal or fingerprint recognition; or similar security features.
11.12     In determining whether the facility has the required square footage, the square footage
11.13 of the following spaces shall be included if the spaces support the operation of enterprise
11.14 information technology equipment: office space, meeting space, and mechanical and other
11.15 support facilities. For purposes of this subdivision, "computer software" includes, but is not
11.16 limited to, software utilized or loaded at a qualified data center, qualified refurbished data
11.17 center, or qualified large-scale data center, including maintenance, licensing, and software
11.18 customization.
11.19     (c) (d) For purposes of this subdivision, a "qualified refurbished data center" means an
11.20 existing facility that qualifies as a data center under paragraph (b) (c), clauses (2) and (3),
11.21 but that is comprised of one or more buildings that consist in the aggregate of at least 25,000
11.22 square feet, and that are located on a single parcel or contiguous parcels, where the total
11.23 cost of construction or refurbishment, investment in enterprise information technology
11.24 equipment, and computer software is at least $50,000,000 within a 24-month period.
11.25     (d) (e) For purposes of this subdivision, "enterprise information technology equipment"
11.26 means computers and equipment supporting computing, networking, or data storage,
11.27 including servers and routers. It includes, but is not limited to: cooling systems, cooling
11.28 towers, and other temperature control infrastructure; power infrastructure for transformation,
11.29 distribution, or management of electricity used for the maintenance and operation of a
11.30 qualified data center or qualified refurbished data center, including but not limited to exterior
11.31 dedicated business-owned substations, backup power generation systems, battery systems,
11.32 and related infrastructure; and racking systems, cabling, and trays, which are necessary for
 Sec. 12.  11
 04/08/26  REVISOR  RSI/MG  26-08060  as introduced
12.1  the maintenance and operation of the qualified data center, qualified refurbished data center,
12.2  or qualified large-scale data center.
12.3      (e) (f) For purposes of this subdivision, "qualified large-scale data center" means a
12.4  facility in Minnesota:
12.5      (1) that is comprised of one or more buildings connected to each other by fiber and
12.6  associated equipment that consist in the aggregate of at least 25,000 square feet, and that
12.7  are located in one physical location or multiple locations; and
12.8      (2) for which the total cost of construction or refurbishment, investment in enterprise
12.9  information technology equipment, and computer software is at least $250,000,000
12.10 collectively by the facility and its tenants within a 60-month period beginning after June
12.11 30, 2025.
12.12     (f) (g) A qualified data center, qualified large-scale data center, or qualified refurbished
12.13 data center may claim the exemptions in this subdivision for purchases made within 35
12.14 years of the date of its first purchase qualifying for the exemption under paragraph (a).
12.15     (g) (h) The exemption in this subdivision is allowed for qualified data centers, qualified
12.16 large-scale data centers, and qualified refurbished data centers that were certified under
12.17 paragraph (h) (i) before July 1, 2042.
12.18     (h) (i) The commissioner of employment and economic development must certify to the
12.19 commissioner of revenue, in a format approved by the commissioner of revenue, when a
12.20 qualified data center has met the requirements under paragraph (b) (c), a qualified refurbished
12.21 data center has met the requirements under paragraph (c) (d), or a qualified large-scale data
12.22 center has met the requirements under paragraph (e) (f). The certification must provide the
12.23 following information regarding each qualified data center or qualified refurbished data
12.24 center:
12.25     (1) the total square footage amount;
12.26     (2) the total amount of construction or refurbishment costs and the total amount of
12.27 qualifying investments in enterprise information technology equipment and computer
12.28 software;
12.29     (3) the beginning and ending of the applicable period under paragraph (b), (c), or (e)
12.30 (c), (d), or (f) in which the qualifying expenditures and purchases under clause (2) were
12.31 made, but in no case shall the period begin before July 1, 2012; and
12.32     (4) the date upon which the qualified data center first met the requirements under
12.33 paragraph (b) (c), a qualified refurbished data center first met the requirements under
 Sec. 12.  12
 04/08/26  REVISOR  RSI/MG  26-08060  as introduced
13.1  paragraph (c) (d), or a qualified large-scale data center first met the requirements under
13.2  paragraph (e) (f).
13.3      (i) (j) Any refund for sales tax paid on qualifying purchases under this subdivision must
13.4  not be issued unless the commissioner of revenue has received the certification required
13.5  under paragraph (h) (i) issued by the commissioner of employment and economic
13.6  development.
13.7      (j) (k) The commissioner of employment and economic development must annually
13.8  notify the commissioner of revenue of the qualified data centers that are projected to meet
13.9  the requirements under paragraph (b) (c), the qualified refurbished data centers that are
13.10 projected to meet the requirements under paragraph (c) (d), and the qualified large-scale
13.11 data centers that are projected to meet the requirements under paragraph (e) (f), in each of
13.12 the next four years. The notification must provide the information required under paragraph
13.13 (h) (i), clauses (1) to (4), for each qualified data center, qualified refurbished data center,
13.14 or qualified large-scale data center.
13.15     (k) (l) Laborers and mechanics performing work to construct or refurbish qualified
13.16 large-scale data centers must be paid the prevailing wage rate for the work as defined in
13.17 section 177.42, subdivision 6. Work performed to construct or refurbish qualified large-scale
13.18 data centers is subject to the requirements and enforcement provisions of sections 177.27,
13.19 177.30, 177.32, and 177.41 to 177.45. For purposes of this paragraph, "refurbish" does not
13.20 include maintenance or equipment refreshment or replacement. The commissioner of
13.21 employment and economic development must not certify a qualified large-scale data center
13.22 under paragraph (h) (i) unless the entity seeking an exemption certifies to the commissioner
13.23 of employment and economic development that it has complied with this paragraph for all
13.24 covered work after June 30, 2025.
13.25     (l) (m) Within three years after being placed in service, a qualified large-scale data center
13.26 must certify to the commissioner of commerce that the facility has attained certification
13.27 under one or more of the following sustainable design or green building standards:
13.28     (1) BREEAM for new construction or BREEAM in-use;
13.29     (2) Energy Star;
13.30     (3) Envision;
13.31     (4) ISO 50001-energy management;
13.32     (5) LEED for building design and construction or LEED for operations and maintenance;
13.33     (6) green globes for new construction or green globes for existing buildings;
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 04/08/26  REVISOR  RSI/MG  26-08060  as introduced
14.1      (7) UL 3223; or
14.2      (8) other reasonable standards approved by the commissioner of employment and
14.3  economic development.
14.4      (m) (n) Notwithstanding section 289A.38, subdivision 1, the amount of the exemption
14.5  allowed to a qualified large-scale data center must be repaid to the commissioner of revenue
14.6  if the commissioner of commerce determines that a qualified large-scale data center has not
14.7  met the requirements under paragraph (l) (m). Nothing in this paragraph prohibits the
14.8  commissioner of revenue from making an assessment of tax, interest, or penalties if the
14.9  commissioner of revenue determines that sales to and purchases made by a qualified
14.10 large-scale data center do not qualify for the exemption under this subdivision.
14.11     EFFECTIVE DATE. This section is effective the day following final enactment.
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