Minnesota
Some Minnesota lawmakers want to extend tax breaks for energy-sucking warehouses. Why?
Minnesota lawmakers are considering giving some of the country’s most profitable tech companies tax breaks on their data centers up to the year 2102 — when most of the legislators and lobbyists furiously negotiating the deal will be dead.
Minnesota currently has 42 data centers, with the majority spread across the metro. Nationwide, tech companies are rapidly building data centers — large warehouses with computer servers used to power the internet — to store and process data. The massive computing power required to develop nascent artificial intelligence breakthroughs are leading companies to seek more data centers.
Minnesota offers sales tax breaks for qualified data centers on purchases of computers, servers, software and cooling and energy equipment. This tax break, which comes in the form of a refund, is set to expire in 2042.
But lawmakers are considering extending the break, perhaps as an olive branch since they’re also going to revoke the sales tax exemption on the electricity that data centers consume. This is expected to generate around $140 million in revenue over the next four years.
Minnesota is facing a multi-billion dollar budget deficit in the next few years, and lawmakers are currently looking to cut programs and services — and a few tax subsidies — to balance the budget.
But since the decision by legislative leaders to revoke the sales tax exemption on electricity will sour the state’s relationship with companies that own data centers, some lawmakers hope expanding current tax breaks far into the future will incentivize companies to keep building their warehouses full of servers in Minnesota.
Amazon recently announced that it’s suspending plans for a large data center in Becker “due to uncertainty” — one week after lawmakers announced they were eliminating the sales tax exemption on electricity.
Gov. Tim Walz on MPR News Friday said that Amazon’s decision to suspend its Becker data center was “pretty bad lobbying” because lawmakers are still negotiating data center provisions.
“We also have one of the most generous tax credits as it stands, but we have to balance our budget. I think a lot of Minnesotans are saying, ‘Well, you couldn’t do a tax cut to my sales tax, but you could do a tax cut to Jeff Bezos.’ I think that was one where it’s right-sized.”
Minnesota law currently allows qualified data centers a sales tax exemption on technology equipment for 20 years, up to the year 2042. But a proposal from Senate Democrats would extend the tax break to 40 years and sunset it at 2062. This means that a data center that makes its first purchase in 2062 could continue claiming the exemption until 2102.
Members of the taxes working group — an unofficial meeting of Senate and House members who are negotiating a budget agreement before Walz calls a special legislative session — are debating the data center tax exemptions.
Sen. Grant Hauschild, DFL-Hermantown, said during a meeting Friday that Minnesota needs to remain competitive with other states.
“We are getting investments from these companies to Minnesota,” Hauschild said. “Other states … have other exemptions that will build these data centers. So we have to understand, do we want investments in Minnesota or do we not want investments?”
Proponents of sales tax exemptions for data centers tout property tax revenue and job creation. But data centers operate with few workers. Like a bridge or highway, once the project is complete, most of the jobs are gone.
And since the number of data centers is growing, the tax breaks will become even more expensive over time.
In Washington State, the tax breaks intended to create jobs have cost more than $474 million since 2018, ProPublica reported. Most of the benefits through the tax breaks went to Microsoft, not local communities.
Minnesota Rep. Aisha Gomez, DFL-Minneapolis, on Friday said that when Minnesota first enacted the sales tax break for data centers in 2011, the state estimated it would forgo $5 million annually in revenue.
But a recent estimate from the Department of Revenue found that even with the elimination of the sales tax break on electricity, the software and other equipment exemption will still cost Minnesota around $100 million annually — and $219 million in fiscal year 2029.
“This is a sales tax exemption that is being asked for by the largest, most profitable corporations that have ever existed on the face of the earth,” Gomez said. “I think it’s really important that we actually look at what this really is, and we look at the powers that are lining up to try to force us to make this decision. And we think long and hard… (about) whether it’s appropriate that this kind of money should be going from the public coffers into the hands of billionaires.”
Data centers are huge consumers of both electricity, and water needed to cool down the equipment.
The Department of Revenue estimated that the 42 data centers in the state consumed 1.6 billion kWh of electricity in 2023.
Running a dishwasher for one hour uses 1 kWh of power.
Minnesota Reformer is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.
Minnesota
Minnesota’s oldest operating theater is in danger of closing it’s doors
One of the oldest operating theaters in the Midwest is in danger of closing its doors for good.
If you’re heading south on Highway 15, Fairmont, Minnesota, is your last gasp before you hit Iowa. It officially became a city in the late 1800s — and not long after, the Opera House was born.
“We are the oldest, operating, continuously operating theater in the state of Minnesota,” said Jane Reiman, a lifelong resident of Fairmont.
When the doors opened in 1901, operas, musicals, plays, and concerts—drew people from across southern Minnesota, and even from Iowa and South Dakota.
“We have done a lot of entertainment over the years.”
The rock band America once performed at the opera house, as did folk legend Arlo Guthrie. In the 1990’s, the opera house even got a visit from Paul McCartney. His family bought seats.
“They came here and sat in the chairs, and now we have plaques on the chairs to memorialize them.”
In 3rd grade Blake Potthoff went to his first performance at the theater, and later, he acted on stage.
“You’ve grown up with this opera house?” asked WCCO’s John Lauritsen.
“Yeah. Absolutely, it’s a part of me even before I became executive director,” said Potthoff.
But like everything else, the theater has aged over time, to the point that it’s going to cost more than $4 million just to keep it running. If they can’t raise the money, the Opera House may have already seen its final curtain call.
“The building is on life support, and we are doing everything we can to make sure we get back to surviving and thriving,” said Potthoff.
Scaffolding is there, just to reinforce the roof; that’s the biggest expense. But the Fairmont community is starting to respond. Grants and donations have raised $1.5 million so far—still short, but a start.
When renovations are complete, they’d also like to maintain the old character of this theater. That includes this hand-cast plaster, which is also 125-years-old.
The chandeliers were installed a decade before the Titanic sank, and they’re hoping to keep those too. For Blake and others, the show has to go on. For the people in the seats, the actors on stage, and for the livelihood of a small town.
“There’s reason to save this building. That $4 million isn’t impossible. Only improbable. And I truly believe it too. I have a history of performing here. And I have two young kids. I want them to perform on stage like I had the opportunity,” said Potthoff.
Minnesota
Lawmakers demand Keith Ellison resign as Minnesota fraud grilling turns brutal
WASHINGTON (TNND) — Rep. Clay Higgins (R-LA) called on Minnesota Attorney General Keith Ellison to resign during the House Oversight Committee’s hearing on the widespread fraud in Minnesota.
Higgins began his line of questioning by referring to Ellison’s open statement.
“Under Minnesota law, my Office has limited jurisdiction over criminal matters. The only kind of criminal case we can prosecute on our own is Medicaid fraud; any other criminal case must be specifically referred to us by county attorneys or the Governor,” Ellison said in his opening statement.
Higgins stated Ellison said that his office only had the authority to investigate Medicaid fraud, to which Ellison nodded his head in response.
But, Higgins pointed out that was incorrect.
“Under your own law, you have authority if the county district attorney asks you to get involved, or if the governor asks you to get involved, then your office can take the lead on any criminal investigation,” Ellison said.
Ellison remained speechless after Higgins asked him if that his statement was correct.
“So you have the authority to lead your state’s effort to respond to this massive fraud at the state level, from within the health care realm, where government money has been stolen at very, very high levels, unprecedented levels, in your state,” Higgins said.
“Are you leading that effort for the state of Minnesota?”
Ellison replied but his response was not picked up by the microphone.
“You’re addressing it,” Higgins asked. “Are you leading it?”
Ellison responded, “we are leading the effort to prosecute Medicaid fraud.”
“I’m not talking about Medicaid fraud,” Higgins yelled.
“Don’t hide behind that. You have the authority to prosecute anything criminally that the governor asked you to. And this thing is big.”
“I’m giving you an opportunity, sir. Are you leading the criminal investigative effort into this massive fraud across the board in the healthcare spectrum, in the state of Minnesota or not,” Higgins continued.
Ellison replied, saying his office was “following the law,” prompting Higgins to interject.
“You are not leading,” Higgins responded. “You’re not leading. I must say, Mr. Chairman, that the Attorney General of Minnesota should resign.”
Minnesota
Maddy Kimbrel Named Minnesota’s 2026 Ms. Hockey Winner
Maddy Kimbrel joined an illustrious group of players as Minnesota’s 2026 Ms. Hockey winner. The award is annually given to the best high school women’s hockey player in the state of Minnesota.
The Holy Family forward scored 37 goals and 57 points this season in only 26 games for her school.
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She was also an assistant captain for Team USA at the 2026 U-18 World Championships winning gold. It was her second time representing USA at the event.
Kimbrel spent four seasons playing for Orono High before moving to Holy Family this season.
The 17-year-old Mound, Minnesota product is headed to the University of Wisconsin next season.
The other four finalists for the award were Alaina Gentz (Centennial/SLP), Jasmine Hovda (Roseau), Lorelai Nelson (Edina), and Mia Miller (Northfield).
Past winners of the award include current PWHL players such as Taylor Heise (2018), Peyton Hemp (2021), Olivia Mobley (2020), Grace Zumwinkle (2017), and Hannah Brandt (2012), and 2024 Hockey Hall of Fame inductee Krissy Wendell-Pohl.
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