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
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.
Minnesota
Bemidji declares March as Minnesota Food Share Month; hears Project Graduate report
BEMIDJI — The city of Bemidji declared March as Minnesota Food Share Month in partnership with the
Minnesota FoodShare March Campaign
during a
city council
meeting on Monday. This campaign is the largest grassroots food and fund drive in Minnesota.
“Food insecurity affects thousands of Minnesotans, including residents of Bemidji and the greater Beltrami County area, and access to nutritious food is fundamental to the health and dignity, and well-being of every community member,” the proclamation reads. “Local food shelves depend on the generosity of community donations to meet the growing needs of our neighbors, and every contribution — whether food, funds or time — makes a direct difference in the lives of Bemidji residents.
“The city of Bemidji proudly recognizes the extraordinary contributions of the volunteers, donors and partner organizations whose compassion and dedication ensure that no neighbor goes without, and the city of Bemidji is committed to fostering a compassionate and caring community where all residents are supported and encouraged to look out for one another in times of need.”
Ward 2 Councilor Josh Peterson read the proclamation as Mayor Jorge Prince attended the meeting virtually. Peterson attempted to award the proclamation to a Bemidji Community Food Shelf representative, but no one was available to receive it.
John Eggers,
a former educator, gave a presentation to the council regarding his Project Graduate initiative, which promotes 100% graduation rates within Beltrami County during Monday’s meeting.
“It’s not an easy task to do, but we can do it,” Eggers remarked.
Eggers shared personal efforts to promote a 100% graduation rate within Beltrami County, such as promoting graduation as a teacher at Red Lake High School recently. He hopes to do more work in Red Lake in the future.
Eggers also formed an alliance of local Bemidji businesses to promote Project Graduate. Each business will find a unique way to promote higher graduation rates while working with the alliance. Additionally, Eggers has spent the last several years forming an advocacy program that has now spread to 12 states and five countries worldwide.
He then shared ideas for the council to follow to promote the initiative. This included joining the alliance, displaying posters, “relentlessly” promoting high graduation rates, starting a PSA campaign, adding the initiative to the city’s website or newsletter and signing a proclamation.
He noted that in 2025, the city signed a proclamation and other Beltrami County cities followed suit, meaning Bemidji could once again set the trend to promote higher graduation rates.
Ward 1 Councilor Gwenia Fiskevold Gould asked how the initiative addresses underlying issues that affect
declining graduation rates
within Beltrami County, such as housing instability and food insecurity.
Eggers did not have a direct answer, but noted that graduation often helps young people climb out of bad situations. He believes that all people deal with adversity and that graduation is an important tool to help improve their quality of life.
He also pointed out that graduation rates among white students have remained steady when compared to statewide trends, but that students of color and Indigenous students’ graduation rates are lower than the state average, something that needs to be addressed to help these communities.
Finally, Eggers noted that the initiative’s drop-out prevention hotline was recently discontinued, but that students or parents can reach out to Eggers directly to receive the help needed to stay in school.
Overall, council members thanked Eggers for his Project Graduate presentation. His contact information can be found on his website,
johnrogereggers.com.
The council will next meet at 6 p.m. on Monday, March 16, at City Hall for a regular meeting. Meetings can be viewed on
the city’s website.
Minnesota
Minnesota sues to block Trump administration’s withholding of Medicaid funds
Minnesota on Monday sued President Donald Trump’s administration in an attempt to stop it from withholding $243 million in Medicaid spending, warning it may have to cut health care for low-income families if the funding is held back.
The lawsuit asked a U.S. court in Minneapolis to issue a temporary restraining order to block the withholding for Medicaid, which is the health care safety net for low-income Americans.
The move came after Vice President JD Vance said last week the administration would “temporarily halt” some Medicaid funding to Minnesota over fraud concerns, as part of what he described as an aggressive crackdown on misuse of public funds.
Minnesota Attorney General Keith Ellison said his office has a strong track record of fighting Medicaid fraud and has won more than 300 convictions and $80 million in judgments and restitutions during his time in office.
“Trump’s attempts to look like he’s fighting fraud only punish the people and families who most need the high-quality, affordable healthcare that all Minnesotans deserve,” Ellison said in a statement. “As long as I am attorney general, I will do everything in my power to defend our tax dollars, both from fraudsters and from the Trump administration’s cruelty.”
The lawsuit names the Department of Health and Human Services and the Centers for Medicare and Medicaid Services as well as Dr. Mehmet Oz, in his official capacity as CMS administrator, and Robert F. Kennedy Jr. in his official capacity as HHS secretary.
The Department of Health and Human Services, which includes CMS, didn’t immediately return messages seeking comment late Monday.
The threatened cuts amount to roughly 7% of Minnesota’s quarterly Medicaid funding, Ellison’s office said in a news release. Minnesota could be required to significantly cut health care services for low-income families or other government services if the cuts take effect, it said.
Medicaid, which is known as Medical Assistance in Minnesota, provides health insurance to 1.2 million Minnesotans who would otherwise be unable to afford it. A family of four may qualify for Medical Assistance with an income at or under $42,759, the attorney general’s office said.
The lawsuit said the administration violated due process procedures because it was taking hundreds of millions of dollars without proving Minnesota’s noncompliance with Medicaid regulations through discovery and an evidentiary hearing.
It alleged the administration failed to provide Minnesota with details about its decision, in violation of federal law. It cited legal precedents, including one that said Congress may impose conditions on states’ acceptance of federal funds, but “’the conditions must be set out unambiguously.’”
Minnesota’s complaint further charged the administration violated the Constitution because the withholding imposed retroactive conditions on Minnesota’s Medicaid funding.
It said withholding the funds was arbitrary, capricious and part of a pattern of political punishment of Minnesota.
The administration said it would hold off on paying $259.5 million to Minnesota for Medicaid spending in the fourth quarter of 2025. Minnesota’s lawsuit challenges the withholding of $243 million of this money.
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