Artificial intelligence is everywhere. Whether it’s ChatGPT drafting emails, AI tools personalizing recommendations or machine learning transforming industries, these technologies are reshaping our lives. But while AI feels seamless, it runs on physical infrastructure: sprawling data centers.
Each AI-powered search consumes about 10 times the electricity of a regular search. Multiply that across millions of queries and you see why data centers, where information is processed and stored, are one of the fastest-growing energy demands worldwide.
In Minnesota, data centers represent opportunity but also raise questions. These facilities promise jobs and infrastructure investment, but their energy needs and potential land use impacts have sparked concerns. As these projects grow, Minnesota must carefully balance progress with local values.
Balancing Growth with Responsibility
Siting data centers, often in rural areas, is no simple task. These facilities require affordable, reliable energy, ample land and community support. While they offer economic benefits like jobs and revenue, they can bring challenges too.
Residents have valid concerns, including questions about increased energy consumption, environmental goals and the impact on farmland or green spaces. In some cases, people worry these facilities might serve corporations more than the communities hosting them. These concerns deserve careful planning and public input.
When done thoughtfully, data centers can strengthen economies while limiting unintended consequences.
Why Cooperatives Are Uniquely Suited to Help
Electric cooperatives are often the energy providers in areas where data centers are located, and their approach offers unique advantages. These not-for-profit organizations are governed by locally elected boards, with a core purpose of strengthening their communities.
This makes cooperatives a natural partner for working with data centers in ways that encourage economic development without sacrificing local interests. Unlike investor-owned utilities, which prioritize profits for distant shareholders, cooperatives focus on ensuring large-scale projects enhance the communities they serve.
Cooperatives don’t lean on communities to strengthen corporate bottom lines; they help strengthen rural economies and ensure development benefits everyone involved.
An All-Tech Approach to Energy
Data centers consume massive amounts of electricity and require a balanced energy approach to remain reliable and sustainable. Meeting these demands means embracing “all-tech,” an energy strategy that mixes wind, solar, nuclear, hydroelectric and natural gas.
Minnesota is well-positioned to provide this energy balance. Renewable sources like wind and solar are valuable for reducing carbon emissions but are weather-dependent. Pairing renewables with stable resources like nuclear and natural gas ensures the grid delivers reliable power even during peak demand.
This energy balance supports growth while keeping sustainability goals in focus. Many forward-thinking projects are integrating renewables while relying on stable resources to ensure uninterrupted operations.
A Transparent Path Forward
Well-planned data centers create ripple effects of opportunity. They generate local jobs, modernize infrastructure and provide revenue that supports schools and public services. But these benefits don’t happen automatically. They require transparent decision-making and close collaboration among everyone involved.
As data center development expands in Minnesota, our region faces big decisions about how to manage growth while respecting local values. By prioritizing open conversations and earning trust, we can ensure data centers power both the digital cloud and the communities hosting them.
Written by Minnesota Rural Electric Association (MREA) staff, used with permission.