Minnesota has quietly provided more than $1 billion in tax breaks to data centers over the past decade, subsidizing everything from computer equipment and software to electricity and cooling systems.
The tax incentive, originally created to attract and grow the data center industry in Minnesota, has been used by 42 facilities across the state.
Right now, the data centers receiving the exemptions are smaller facilities on corporate campuses scattered around the Twin Cities metro or are run by third parties that rent space to businesses.
But as developers pursue much larger, hyperscale data centers in communities across Minnesota, some lawmakers and residents question whether the anticipated growth in this public investment will deliver enough benefits to justify the cost.
State data reviewed by 5 INVESTIGATES shows the Minnesota Department of Revenue processed nearly $1.02 billion in sales tax exemptions for data centers since 2015.