Amazon scraps Becker data center plan

Data center tax breaks under debate

An expansion of data centers has started in Minnesota and the businesses could grow 40-50 times larger within a few years, but environmentalists have concerns about clean water, electricity overuse and tax breaks for huge corporations. FOX 9’s Corin Hoggard has the details.

BECKER, Minn. (FOX 9) - Plans for Amazon to build a data center in Becker, Minnesota, are being put on hold as the company evaluates other options. 

READ MORE: Tax breaks bring data center expansion, plus environmental concerns

Amazon Becker data center plan scrapped

What they're saying:

Amazon Spokesperson Duncan Neasham shared the following statement when asked about the plans for the data center being suspended:

"We are constantly evaluating new locations based on customer demand. We sincerely appreciate the support we’ve received from both the public and state and local officials as we continue to evaluate this location."

Minnesota State Senator Andrew Mathews (R-Princeton) released a statement saying, in part, "I’m incredibly frustrated that a major economic lifeline for the Becker community has effectively stalled. Earlier this session, Governor Walz rolled out the red carpet for Amazon and pledged to support their investment in Minnesota. But when it came time to act, the Governor and legislative Democrats repeatedly stonewalled the project. I’ve fought all session to pass policies that give regulatory certainty and stability to help these projects come here, but the Governor’s proposal last week to repeal the data center’s sales tax exemption on electricity appears to be the final straw."

FOX 9 has reached out to the Governor's office for a response and will update this story if one is received. 

The backstory:

Environmentalists and neighbors had previously raised concerns over the proposed data center expansions from Meta, Microsoft, Amazon, and Google after generous tax exemptions were drawn up in 2011. 

These data centers are big businesses, especially in rural Minnesota, and draw a lot of power from local infrastructure. 

READ MORE: Minnesota rushes to bid for Amazon's second headquarters

Others have raised the concern that because expansions are happening so fast, the data center projects would utilize out-of-state contractors, reducing the number of jobs that would be created in Minnesota.