Press Release: Is Minnesota For Sale to Big Tech?

FOR IMMEDIATE RELEASE
May 18, 2025
CONTACT: Aaron Klemz, 763-788-0282, aklemz@mncenter.org

SAINT PAUL, MINNESOTA – Minnesotans concerned about the impact of super-sized data centers put a question on the side of the Minnesota Centennial Building on Saturday. The projection asked “For Sale to Big Tech?” and addresses ongoing negotiations about tax subsidies and exemptions from environmental standards for data centers that are part of the end of legislative session negotiations. Other messages projected on the building in the Capitol complex included “No Dirty Data Center Deals,” “Data Centers A.I.n’t Worth It,” “Tax Breaks for Billionaires?,” and “Hands Off Our Water.”

Thirty registered lobbyists working for Amazon, Meta, Tract, and Google have pushed for extended and enhanced tax subsidies and opposed common sense protections for communities, electric ratepayers, and Minnesotans who depend on groundwater. With the legislative session drawing to a close, Minnesotans want to know if Governor Walz and legislative leaders will stand up for Minnesotans, or allow tech billionaires to flout our laws while collecting over $100 million in annual tax breaks. 

The action on Saturday follows the delivery of a petition signed by over 1500 concerned Minnesotans to Governor Walz and legislative leaders asking for four things on “hyper-scale” data centers:

1. No Tax Breaks for Billionaires: With a looming budget deficit, cutting state programs while continuing tax exemptions for these hyper-scale, billionaire-owned data center facilities is unacceptable.
2. No Environmental Review Exemptions: Exempting any aspect of data center construction (or operation) from "following the process" of environmental review in our state must not be considered.
3. Hands Off Our Water: Minnesota's water is our most precious resource and must be protected ~ these facilities require enormous amounts of water with no framework in place to protect our ecosystems from the damage.
4. Adhere to our Energy Goals: Welcoming these facilities in our state is an intentional decision to nearly double our base-load energy footprint, fundamentally inconsistent with energy reduction targets and progress towards climate justice.

“Data center developers and their army of lobbyists showed up at the Minnesota State Capitol this year thinking they’d get an easy win and exempt themselves from our state laws,” said Sarah Mooradian, Government Relations & Policy Director for CURE. “But the 1500 signatures we delivered to Governor Walz show that this industry severely underestimated the power of Minnesotans who want to see their leaders stand up for clean water and air, affordable carbon-free energy, and thriving, healthy communities, while ensuring billionaire tech bros pay their fair share.”

The announcement of a tentative budget agreement included removing the current sales tax exemption for the electricity that data centers use, a move that is estimated to save $40 million per year. This is a good start, but proposals remain in discussion that would exempt data centers from environmental standards and extend and enhance sales tax exemptions on materials, hardware and software. 

"These billionaire-owned corporations are coming to Minnesota because our state lacks a regulatory framework to safeguard residential communities like mine in Farmington and hold them accountable," said Cathy Johnson who chairs the Coalition for Responsible Data Center Development. "We don't want to end up like residents of Mansfield, Georgia who found themselves with round-the-clock light pollution, air pollution, and wells that dried up after Meta opened one of these hyper-scale facilities." Johnson continued, "If these facilities must locate themselves here, they should be built with a large buffer over 1500 feet away from residential neighborhoods, we need our water protected and, for heaven's sake, no tax windfalls for billionaires on the backs of the citizens. They can pay their own way, or stay away.” 

“Minnesotans are being asked to accept cuts to health care, education and other essential services as part of the budget agreement. They will not forget if we give tax breaks and exempt big tech from our laws that protect clean air and clean water,” stated Aaron Klemz, Chief Strategy Officer at the Minnesota Center for Environmental Advocacy.

###

Video of the projection and the Minnesota Capitol is available for free use with attribution on request, please email Aaron Klemz if you are interested. Images included with this release are available for free use with attribution to Devon Young Cupery. 

Rise & Repair is a diverse alliance of people and organizations advancing climate justice in Minnesota.