For a data center using more than 100 million gallons of water annually and needing a new individual appropriation permit or permit amendment, the Department of Natural Resources may request preapplication project and water-use information and must provide a written assessment of potential water-availability constraints. This process does not replace environmental review or other required approvals. Preapplication evaluation and continuing review requirements

For new or modified water-use permits involving a data center’s proposed new or additional consumptive use above 100 million gallons per year—or an existing permittee intending to supply a data center more than that amount—the department must consider public health and safety, water conservation and watershed measures, and water-use conflicts. The commissioner must also require an aquifer test if deemed necessary to protect public health, safety, and welfare. Water-permit conditions for large projects

By December 15, 2026, the Public Utilities Commission must define a very-large-customer class or subclass for each public electric utility. For customers in that class, the commission may approve, modify, or reject utility tariffs or service agreements, considering whether the customer bears attributable costs, the utility meets state electricity benchmarks without seeking delays or modifications, and other customers are protected from stranded costs. Existing, renewed, or extended agreements and customers actively served before 2020 are excepted. Very-large-customer class and agreement requirements

Utilities must offer a clean-energy-and-capacity tariff to commercial and industrial customers. Participation is optional, but participating customers must pay their proportional costs for new resources and related utility costs, with cost shifting prohibited. Clean-energy tariff cost requirements

A qualified large-scale data center must pay an annual fee based on peak demand arranged by its utility: $2 million for 100–250 MW, $3 million above 250 and below 500 MW, $4 million for 500 and below 750 MW, and $5 million for 750 MW or greater. Annual fee tiers

To qualify for the large-scale data-center sales-tax exemption, a Minnesota facility must have at least 25,000 square feet and meet a $250 million combined construction, refurbishment, equipment, and software investment threshold within a 60-month period beginning after June 30, 2025. Covered construction and refurbishment work must meet prevailing-wage requirements, and the facility must obtain an approved sustainable-design or green-building certification within three years of being placed in service. The exemption must be repaid if the certification requirement is not met. These conditions apply to the tax exemption, not generally to building a data center. Investment, wage, and certification conditions

State permitting agencies must refer data-center permitting inquiries to Minnesota Business First Stop and ensure staff have resources to make referrals. Permitting inquiries are also referred to Minnesota Business First Stop.

For data centers proposing water use above 100 million gallons per year that need a new individual permit or permit amendment, the Department of Natural Resources may assess water availability before a formal application and must provide a written response describing potential constraints. The communications and information exchanged are nonpublic, but this process does not replace environmental review or permit requirements. Preapplication evaluation of certain water appropriation projects.

The Public Utilities Commission must establish a very-large-customer class or subclass for each public electric utility by December 15, 2026, and may approve, modify, or reject proposed service tariffs or agreements for that class. The review must address cost assignment, state electricity benchmarks, and protection against other customers bearing stranded costs. Existing, renewed, or extended agreements—and customers already taking service before 2020—are exempt from this section. Establish by order the definition and appropriate characteristics and This section shall not apply to existing, renewed, or extended electric service agreements.

Public utilities must offer commercial and industrial customers an optional clean-energy and capacity tariff. Participating customers may choose new clean-energy or capacity resources, provided reliability is maintained, and must pay proportional costs; the tariff must prevent cost-shifting between participants and other utility customers. Offer a clean energy and capacity tariff.

A qualified large-scale data center that pays the required annual fee is exempt from contributing to electric-service energy conservation optimization plans. The fee is $2 million to $5 million, depending on forecast peak demand from 100 MW upward; the fee data is nonpublic. A qualified large-scale data center that pays the required fee and the fee data collected under this section must be treated as nonpublic data.

Qualified large-scale data centers are excluded from specified utility energy-sales calculations and from specified solar-standard calculations. For utilities serving fewer than 200,000 retail electric customers, the law also bars passing costs of the applicable solar standard on to the listed excluded customers. A qualified large-scale data center and Those customers may not have included in the rates charged to them.

Qualified large-scale data centers may receive a sales-tax exemption, through a refund, for qualifying enterprise information technology equipment and software purchases, including replacement or upgrade purchases. Eligibility requires at least 25,000 square feet and at least $250 million in qualifying costs within a 60-month period; covered construction or refurbishment work is subject to prevailing-wage requirements, and the facility must obtain an approved sustainable-building certification within three years of being placed in service. Purchases of enterprise information technology equipment and computer software and at least $250%2C000%2C000 collectively.