Wintry mix spreads across Minnesota

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A Colorado-based developer called Tract expects its proposed data center in Farmington could use more than 800 million gallons of water per year from the city’s water supply, according to an environmental review. The project could potentially double the city’s current water use.

Tract’s proposal would involve it piggybacking on Farmington’s city groundwater permit, a practice some state lawmakers say allows the companies to avoid public scrutiny and puts the state’s groundwater supply at risk. 

Those lawmakers have proposed requiring hyperscale data centers and other large industries to apply for their own permit to use water. 

“What some of these large users are attempting to do is just use that city's water permit instead of getting their own,” said state Sen. Ann Johnson Stewart, the sponsor of a Senate bill, during a March 26 committee hearing. “That's what this bill hopes to prevent.”

Minnesota is often thought of as a water-rich state. But some environmental groups warn that water-guzzling industries, including hyperscale data centers, bottled water manufacturers and ethanol plants, are increasingly straining the state’s groundwater resources. 

“Pumping too much water can cause residential wells to run dry, draw contaminants like manganese and arsenic into well water … and long term, can threaten sustainable water supplies across the state,” said Andrew Hillman, water resources specialist with the nonprofit Minnesota Center for Environmental Advocacy, during the Senate committee hearing.

Groundwater is the source of drinking water for about three-fourths of Minnesotans and almost all of the water used to irrigate crops.

Johnson Stewart, DFL-Minnetonka, said requiring a separate permit for large water users who use more than 100 million gallons a year, or more than 50 percent of a city’s authorized water use, would increase transparency and give the public a chance to weigh in before it’s approved. 

Proponents of the bills say they also would allow the Minnesota Department of Natural Resources to enforce state rules that give the highest priority to household drinking water and a lower priority to industrial and commercial use. 

They say when industries and businesses get their water through a city permit, residents’ water supply can be at risk during a drought or water shortage.

“The intent is simple – people's drinking water should come before industrial use,” said Janelle Kuznia, a New Market Township resident, during the Senate committee hearing. 

Kuznia fought against a Niagara Bottling 

 in Elko New Market, south of the Twin Cities metro, which began operating last year.

The DNR permitted the city of Elko New Market to pump more groundwater to provide to the plant in June 2024. The approval came despite 

 from some area residents with private wells that their water became discolored and cloudy while the city conducted an aquifer test in late 2023.

Kuznia said some well owners have spent thousands of dollars on repairs and filtration systems, and some are buying bottled water.

“We can no longer allow large industrial users to hide behind municipal permits,” she said.

The bill’s proponents say requiring a separate permit would put the liability and cost for any cases of wells running dry onto the company, rather than the city. They say it also would increase transparency by requiring industries to report their water use on a monthly basis, rather than annually.

Rep. Kristi Pursell, DFL-Northfield, is sponsoring a similar bill in the Minnesota House. The bills’ future is uncertain, but they could be included in larger omnibus bills.

The proposals have generated some pushback, including from the state agency tasked with overseeing water-use permits.

Jason Moeckel, assistant director of ecological and water resources for the DNR, said the agency isn’t currently set up to issue a separate permit for large water users, and would have to make changes to its permit program.

Minnesota Chamber of Commerce’s Andrew Morley noted that Minnesota lawmakers passed some additional 

 on data centers last year, including giving the DNR the authority to request more information about their water use early in the development process.

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Kirsti Marohn

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The bill’s proponents say the practice of large industries piggybacking on a city’s water-use permit helps them avoid public scrutiny and puts the state’s groundwater supply at risk.

A water tower stands above trees and houses

Minnesota lawmakers push for water permits for data centers and other big industries

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