Minnesota policies needed to ensure data centers support clean energy

Fresh Energy calls on Minnesota regulators and the Public Utilities Commission to adopt policies ensuring data center development benefits Minnesotans and aligns with the state’s 100% clean electricity by 2040 law.

• Main announcement / action: Fresh Energy urges the Commission to implement better load forecasting, rate design (large-load tariffs), and transparency on water and behind-the-meter generation to ensure data centers pay their fair share; Minnesota currently has 13 operating data centers with 43 MW of capacity and 12 planned projects totaling 1,120 MW (as of January 2026). Key regulatory actions already in motion include Xcel Energy’s large-load tariff filed July 2025 and the Commission requiring Dakota Electric to file an additional tariff in December 2025.

• Background and details: Fresh Energy cites national context such as data center investment growth from $13.8 billion to $41.2 billion per year and nearly 100 GW of proposed behind-the-meter gas plants nationwide; it recommends using IRP updates, stochastic/scenario-based forecasting, and tariff rate classes so utilities do not overbuild infrastructure or shift costs to residential customers.