The Rise of Data Centers in Minnesota | Beyond the Breaker Podcast

EAGAN, MN – April 23, 2026 –

This episode dives into the world of data centers with guest Colleen Eddy, Metro Business Development Manager with the State of Minnesota’s Department of Employment and Economic Development (DEED). With over five years of experience at the state level and a background in economic development for the City of Elk River and the Chamber of Commerce, Colleen shared her insights on the infrastructure, labor, and community dynamics involved in building and maintaining data centers.

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A Growing Data Center Hub

Minnesota has become a notable location for data center development, and Colleen explained that the state’s natural and logistical resources play a key role. “We’ve got power, we’ve got land, and we’ve got water,” she said. These factors, combined with Minnesota’s planning and regulatory framework, have made the state an appealing option for developers and end users.

Colleen also described how the state’s approach to data centers has changed over the past five years. “When I first started, I was the first call,” she said, referring to developers and consultants reaching out about land and tax incentives. Now, she noted, utility providers are often the first point of contact due to the increasing demand for power. “The whole conversation has shifted,” she added, emphasizing the importance of utilities in meeting the energy needs of large-scale data centers.

Addressing Community Concerns

Colleen discussed some of the common concerns raised by communities when data centers are proposed, including water and power usage.

“One of the biggest misconceptions is about water,” she said. “People think data centers are going to take all their water, but most of the new technology uses a closed-loop system, so they’re not using as much water as people think.”

She also addressed concerns about power usage, explaining that some residents worry their rates will increase due to the energy demands of data centers. Colleen clarified that companies are responsible for funding infrastructure upgrades, such as substations, and these costs are not passed on to local residents.

Incentives and Impact

Colleen explained that Minnesota offers a sales tax exemption for data centers, which was introduced to make the state competitive with others that were already offering similar benefits.

She explained that data centers often overbuild infrastructure, which can benefit surrounding communities. “They pay property taxes, they give back to the community, and they don’t have high traffic like warehouses or distribution centers,” she said.

Colleen also shared an example of workforce development tied to data center construction. She described how Meta’s data center in Rosemount partnered with Dakota Technical College to train construction workers specifically for the project. “It’s a community within a community,” she said, describing the collaboration between the company, the college, and the local workforce.

Looking Ahead

As Minnesota continues to attract data center projects, Colleen emphasized the importance of balancing growth with regulation. “We’re a highly regulated state, as we should be,” she said, explaining that safeguards are in place to protect resources and ensure projects align with state guidelines.

She also encouraged communities to learn more about data centers and participate in discussions about their development. “We all use data centers—whether it’s for online banking, streaming Netflix, or using our phones,” she said. “It’s important to understand what they are and what they’re not.”

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