MN HF16

Establishes definition of "data center" as a facility designed for 100+ megawatts load primarily for digital data storage, management, and processing with related infrastructure for backup power, cooling, and security.

Creates new "qualified large-scale data center" category requiring $250 million+ investment over 60 months, with exemptions from certain energy conservation program costs and requirements for prevailing wage rates and green building certifications within three years of operation.

Imposes annual fee on qualified large-scale data centers ($2-5 million based on peak demand of 100-750+ megawatts) deposited into energy and conservation account for low-income energy programs.

Requires public utilities to establish "very large customer" service class by December 15, 2026 and offer optional "clean energy and capacity tariff" allowing customers to elect clean energy sources while paying proportional costs without cost-shifting to other ratepayers.

Modifies sales and use tax exemptions to include qualified large-scale data centers; extends exemption period from 20 to 35 years; establishes water appropriation permit procedures requiring preapplication evaluation and aquifer testing for data centers exceeding 100 million gallons per year usage.