Regulate the Construction and Operation of AI Data Centers in Minnesota

 

The purpose of this bill is to regulate the development and operation of AI data centers in Minnesota and mitigate the

negative impacts on the environment, water and other natural resources.

 

Fresh water is one of the most valuable resources in the world. We live in the state labeled “Land of 10,000 Lakes”, so

we've never known a life without an abundance of water. But recently, clean water is becoming more scarce around the

country and even in our state. An important threat is impacting our water security: AI data centers. They have been

popping up around the United States and consuming vast amounts of water sourced from the vicinity of these centers.

Large data centers can consume as much as 5 million gallons of water a day! These AI data centers are stealing fresh

water from the members of our community, and it must be put to a stop. The purpose of this bill is to regulate the

building and operation of data centers in Minnesota, and limit state funding and incentives going to these companies

without supervision and oversight.

 

AI Data Center: A facility that houses the specific IT infrastructure needed to train, deploy and deliver AI

applications and services. It has advanced compute, network and storage architectures and energy and cooling

capabilities to handle AI workloads.

Artificial Intelligence (AI): Refers to computer systems that can perform complex tasks normally done by

human-reasoning, decision making, creating, etc.

Environmental Protection Agency (EPA): A department of the government that protects people and the environment from

significant health risks, sponsors and conducts research, and develops and enforces environmental regulations.

 

Operations of the established Board will be funded by proposal fees and taxes paid by the AI companies. The companies

will also be required to put money aside to offset negative environmental impacts and any remediation that is necessary

as a result of the building operations.

 

As a result of this bill, the state of Minnesota will establish a Board of environmental scientists, engineers and

consultants, in close cooperation with the Environmental Protection Agency (EPA), and managed by the government to make

decisions about AI companies requesting to build data centers on Minnesota land. This board will consider water usage,

economic opportunity, and environmental impact when considering the proposals of these companies. AI companies will be

required to submit a request to the board and the board will have authority to approve or deny the requests. This board

will also create a set of rules that will determine if a building is a data center, and determine if a company is an AI

based organization.

 

The effective date of this bill will be June 1st, 2026. On that day and the days that follow, the Board will be

established, board members will be appointed, and they will begin meeting as soon as possible. Guidelines and processes

will be determined by the Board and administered by government employees.