Development of a proposed Amazon data center in Becker, Minn., has been suspended following news that legislators intend to repeal electricity tax exemptions for data centers.
That repeal was a part of a budget deal negotiated this month by Gov. Walz and legislative leaders from both parties. Under the deal, companies that operate data centers will begin paying taxes on electricity, but tax exemptions on software and hardware will stay.
The repeal of the tax exemption on data center electricity will reportedly be used to help pay for a research and development tax credit.
Back in 2024, Amazon purchased more than 300 acres in Becker with plans to develop a data center. That center, designed to house hundreds of servers and hard drives, would reportedly generate $1 billion in economic activity and add over 100 permanent jobs.
When asked about the suspension, Amazon said: “We are constantly evaluating new locations based on customer demand. We sincerely appreciate the support we’ve received from both the public and state and local officials as we continue to evaluate this location.”
However, the tech giant said it will be redirecting more of its resources to different projects due to uncertainty.
Amazon said that it picks data center locations using a variety of factors which include grid reliability, ability to meet customer demands, exposure to extreme weather, and the cost of land and power. The company also noted that it looks at local government’s commitment to investing in technology infrastructure when it considers locations for data centers.
Despite this, Amazon did not specifically say that the electricity tax exemption repeal was the reason for suspending the Becker project.
“Data centers are coming and they can be a valuable asset for our state and local communities,” said Sen. Andrew Mathews, R-Princeton. “But the policies championed by Governor Walz and Democrats are driving these opportunities away. Instead of creating jobs and economic growth here, they’ll now be built in other states.”
Mathews, who represents Becker in the Minnesota Senate, denounced the repeal and said he was “incredibly frustrated” that the project has now stalled. The Republican legislator further mentioned that he had worked hard to bring projects like the data center to his district and wants to make development easier.
Alpha News reached out to Gov. Walz and the legislative caucuses who negotiated the budget agreement for this story. However, none of those entities immediately responded to media inquiries.
“Every city deserves a path to prosperity, but under Democratic control, that path gets harder every day,” added Mathews. “This amplifies the message that under Tim Walz, Minnesota is not a place to do business. If Amazon can be driven out of state, anyone else could be next.”
Luke Sprinkel
Luke Sprinkel previously worked as a Legislative Assistant at the Minnesota House of Representatives. He grew up as a Missionary Kid (MK) living in England, Thailand, Tanzania, and the Middle East. Luke graduated from Regent University in 2018.
