02-03-2025
Amazon can't skip permitting process for data center generators, MN utilities commission decides
Amazon has suffered a setback in its quest to speed up regulatory approval for its proposed data center in Becker.
On Friday, the Minnesota Public Utilities Commission voted 4-0 to reject a request for a permitting exemption on Amazon's plan to build 250 backup diesel generators for the site.
The tech giant was hoping to avoid a drawn-out permitting process, and had argued the generator facility should be exempt because, as it would only be used for Amazon's data center in case of a power outage, it would not be connected to any public power grid.
However, the commission's decision means the company must pursue a "Certificate of Need" for the generators. In other words, Amazon must now prove that they need the machines — and whether "more cost-effective alternatives exist," among other state-mandated guidelines.
In a statement to the Washington Post, Sarah Mooradian, policy director for environmental group CURE MN, said the organization was pleased with the ruling, arguing that 'even if an energy source isn't directly connected to the grid, it still has huge impacts that need to be examined and questioned, especially at the scale we're talking about with hyperscale data centers.'
For its part, Amazon issued a statement saying the company appreciates the "clarity" provided by the commission's decision, and added that it remains committed to "working collaboratively with state leaders to determine the best path forward for any future projects," the paper noted.
What that means for the company's plans in Becker is unclear. But as the Star Tribune reports, Minnesota House Republicans have put forward a bill that would "exempt data centers from Certificates of Need."
The paper notes that Becker city officials as well as three construction unions are backing Amazon in the matter.
Amazon bought the 348-acre property in late 2024 for "close to" $73.6 million, Data Center Dynamics reports.
Situated at the site of Xcel Energy's former Sherco coal plant, the proposed data facility is expected to create 1,200 construction jobs, "followed by 100 permanent roles upon completion," the paper says.
