Criteria for preapplication evaluations of water appropriations for data centers modified, data centers' electricity sales exempted in calculating a utility's solar energy standard, and data centers exempted from paying sales tax on electricity purchases.

This bill modifies how Minnesota regulates water use, electricity sales, and solar energy standards for data centers. It requires large data centers using over 100 million gallons of water annually to provide detailed information before permits are issued, while exempting certain qualified facilities from this requirement if they meet specific filing or location criteria. The legislation also exempts electricity sales from qualified large-scale data centers when calculating utility solar energy standards and removes sales tax on electricity purchases for these facilities. Additionally, it creates exemptions from certain clean energy tariff requirements for data centers that applied for permits by January 1, 2025, or are located in eligible communities. These changes directly affect data center operators, water management agencies, public utilities, and local governments in Minnesota.