SF4296

Purpose

• Require local governments to conduct public hearings and provide specific disclosures before approving data center developments.
• Add new requirements to Minnesota Statutes to increase transparency and public notice for data center projects.

Key Definitions

• Data center: a facility (one or more buildings) whose primary purpose is storing, managing, or processing digital data.
• End user: the owner or operator of the constructed data center.
• Municipality: includes a county, or a city or town (including charter or statutory forms).
• Armed with a firearm: as defined in Minnesota law (section 326.32 subdivision 1a).
• Armed with a weapon: as defined in Minnesota law (section 326.32 subdivision 1b).
• Security guard: as defined in Minnesota law (section 326.32 subdivision 13).

Main Provisions

• Public hearings
  • A municipality must hold at least two public hearings before approving a rezoning petition or an application for a conditional use or special use permit for a data center.
• Required disclosures (to be provided before hearings)
  • At least one hearing must be solely for informing the public about the petition or application.
  • Disclosures to be provided at least 48 hours before the hearing, including:
  • Petitioner or applicant name.
  • Anticipated end user name.
  • Location and size of the proposed data center.
  • If located near or within residential zones, the estimated number of security guards, whether any guard will be armed with a firearm or with a weapon, and whether guards will be armed.
  • Estimated utilities needed for operation (fuel lines, sewer, stormwater, electricity, and related infrastructure).
  • 48 hours before any public meeting to vote on the petition or application, the municipality must disclose the information listed above.
  • Disclosures can be provided by posting on the municipality’s website or by making the information available for inspection at a reasonable time and place.
• Effect of private agreements
  • The disclosure requirements apply notwithstanding any nondisclosure agreement or other contract signed by the municipality or its agent.

Significant Changes to Existing Law

• Establishes a new data center-specific section (within Minnesota Statutes chapter 462) that creates mandatory public hearings and detailed pre-hearing disclosures for data center rezoning and permit applications.
• Introduces concrete disclosure elements (names, end user, location/size, security details, and utility needs) and a specific 48-hour notice window.
• Requires disclosures to be accessible publicly (website posting or in-person inspection) and overrides private NDAs for the purposes of required disclosures.

Practical Implications and Considerations

• Increases local government transparency and public participation for data center projects.
• Potentially slows or alters the approval process due to the two required hearings and extensive pre-hearing disclosures.
• Places an emphasis on security details (number of guards, arming status) and utility requirements in public records.
• Ensures that private agreements do not block important information from the public.

Compliance and Enforcement (Summary)

• Municipalities must follow the two hearings and the specified disclosure requirements, and they must disclose information even if there are private NDAs, by website posting or public inspection.
• Failure to comply could affect the approval process for data center projects or trigger additional scrutiny.

Relevant Terms data center; public hearings; rezoning petition; conditional use permit; special use permit; end user; municipality; security guard; armed with a firearm; armed with a weapon; municipality’s website; 48 hours; disclosures; nondisclosure agreement; Minnesota Statutes chapter 462; fuel lines; sewer; stormwater; electricity; residential use.