1. United States
  2. Minn.
  3. Letter

Oppose AI Data Center Development in Minnesota

To: Rep. Anderson, Sen. Westrom, Gov. Walz

From: A constituent in Benson, MN

February 22

I am writing to urge you to oppose the development of AI data centers in Minnesota and to support legislation that protects residential ratepayers from bearing the infrastructure costs these facilities impose on our electric grid. For the first time in decades, America faces dramatically increased electricity demand, with AI data centers as a primary driver. Virginia, which hosts the world's largest concentration of data centers, provides a cautionary example. A state-commissioned study found that unconstrained demand largely from data centers would drive up Virginia's energy usage 183% by 2040, compared to only 15% growth without new data centers. Beyond power plant costs, utilities must install additional substations, transformers, and distribution lines, with these system costs likely increasing rates for all customers, including residential users. State lawmakers across the country are recognizing this threat. New Jersey state Sen. Bob Smith, chair of the Environment and Energy Committee, warns of a "crisis coming our way in electric rates" and questions why citizens should bear rate increases caused by data centers. Georgia electric customers have experienced six rate increases in less than two years, prompting the Georgia Public Service Commission to approve new rules forcing data centers to cover their own infrastructure costs. Oregon state Rep. Pam Marsh notes that "data center growth is outstripping every other kind of conventional user category" with evidence that demand has already shifted onto residential ratepayers. Consumer advocates point out that many data centers don't generate enough tax revenue to cover their tax breaks. As Kasia Tarczynska of Good Jobs First stated, "It's not a winning program for state budgets." These facilities use immense amounts of power and water while creating few long-term jobs. I urge you to prevent AI data centers from locating in Minnesota and to ensure that if any large energy users do locate here, they are placed in a separate rate class that prevents their infrastructure costs from being passed on to residential customers.

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