Don’t shut the door on data centers in Minnesota

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Minnesota stands at a crossroads. As our economy becomes increasingly digital, the demand for data centers — the backbone of everything from health care records to online education — has never been greater. Yet, some of my colleagues in the Legislature are considering blocking new data center investments, which could have severe economic consequences for our state.

This would be a mistake.

We need to make smart decisions that protect Minnesota’s future. Data centers provide high-quality jobs, generate significant tax revenue and fuel industries that Minnesotans rely on every day. Instead of turning away massive investment in Minnesota, we should embrace this industry and capitalize on its historic potential while ensuring it fits within our sustainability goals.

They’re a boon for jobs and economic growth

Data centers are often misunderstood as job-light facilities, but the reality is quite different. These projects create thousands of high-paying construction jobs during the buildout phase, followed by long-term, high-skilled positions in IT, engineering and facility operations. For every direct job in a data center, studies show that multiple indirect jobs are created in the local economy — from electricians and maintenance workers to local businesses that serve the growing workforce.

On top of that, data centers generate millions in local and state tax revenue. They fund public schools, infrastructure projects and essential services. In rural areas, where our economy is especially vulnerable to outside forces, data centers provide a stable and recession-resistant source of revenue that communities can depend on for decades.

They offer sustainability leadership

One of the biggest misconceptions about data centers is their environmental impact. The truth is, no industry is investing more in clean energy and sustainability than the data sector.

Leading data center operators in Minnesota and across the country are committing to 100% renewable energy, driving demand for wind and solar projects. They are investing in advanced cooling technologies that dramatically reduce water usage and adopting energy-efficient hardware that cuts electricity consumption. Some companies are even developing innovative ways to recycle waste heat to warm nearby buildings, further reducing environmental impact.

Data center companies also are among the largest purchasers of carbon-free energy, accelerating the transition to a greener grid. Their investments help fund new wind and solar farms, making clean energy more accessible for all Minnesotans.

There’s a cost to saying no

If Minnesota shuts its doors to data centers, those investments won’t disappear — they’ll simply move to states that are more welcoming. Places like Iowa, North Dakota and Illinois are rolling out the red carpet, offering incentives and regulatory clarity that encourage long-term investment. That means Minnesota will miss out on thousands of jobs, millions in tax revenue and the opportunity to be a leader in sustainable digital infrastructure.

Blocking data center growth won’t stop the digital economy. That ship has sailed. It will only mean that our businesses, schools and communities will rely on infrastructure built elsewhere, sending economic benefits across state lines while Minnesota falls behind. Again.

Instead of pushing data centers away, we should focus on smart policies that balance economic growth with sustainability. That means working with the industry to strengthen energy efficiency standards, encouraging investments in renewable power, and ensuring local communities benefit from these projects.

The choice is clear: We can embrace innovation, create jobs and lead on sustainability, or we can watch as other states reap the rewards. Let’s make the right decision for Minnesota’s future.

Shane Mekeland, R-Clear Lake, is a member of the Minnesota House and author of a bill (HF 28) to aid data center expansion in the state.