Minnesota data center debate raises concerns over infrastructure, transparency

MINNESOTA (FOX 9) - The emergence of data centers across the country is sparking concern and curiosity in the communities where they are being built, with some worried about the strain on local infrastructure and overall transparency.  

READ MORE: Hermantown City Council moves forward with controversial data center

Data centers in Minnesota: Why here? 

What we know:

Data centers house IT equipment and have been used since the earliest computers existed in the 1940s. Large warehouse-style facilities known as hyperscale centers have become more common in recent years, coinciding with the rise in artificial intelligence applications.  

These centers typically have over 5,000 servers and require more than 100 megawatts of electricity capacity. 

"In Minnesota, there are no hyperscale data centers currently operational in the state," said Minneapolis Federal Reserve Analyst Haley Chinander during an interview with FOX 9 on Wednesday, Nov. 15. "There is one under construction in Rosemount, that's under Meta, but at the moment, we have about 12 proposed centers across the state, but none actively under construction that I know about." 

READ MORE: Meta building $800M data center in Rosemount, Minnesota

Local perspective:

The Upper Midwest is attractive for data center developers due to its available power, fiber, and proximity to large population centers. 

Minnesota's cooler climate also offers lower cooling costs compared to other parts of the United States. 

Concerns over power and transparency

Dig deeper:

Developers sometimes keep such projects under wraps in early stages, executing non-disclosure agreements with city members. 

An example of this practice can be seen in Hermantown, where a data center is being proposed by a mystery company, known as Harmony Group LLC, that is representing a Fortune 500 company.

Residents there have raised concerns about the lack of transparency and the fact that three commissioners on the St. Louis Board of Commissioners have signed non-disclosure agreements related to the project.

Data centers are warehouses full of computer servers that provide data storage and processing for apps and websites. They are necessary in the modern world but draw a lot of resources, like power and water, to function.

The Hermantown project was discussed during a county Board of Commissioners meeting last week, leading to a controversial exchange between a commission member and a local reporter.

What we don't know:

There are concerns about the impact of data centers on existing power infrastructure. 

While Minnesota hasn't seen much impact yet, nationally, there are worries about increased electricity rates due to the demand from these centers. 

It's unclear how the proposed data centers will impact local communities and whether existing infrastructure can support the increased demand for power.