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Released March 04, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--E-commerce and web services giant Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington) experienced a kink in its plans for a new data center when the Minnesota Public Utilities Commission (PUC) unanimously ruled that diesel generators used for power backup at the site would not be exempt from regulatory oversight as Amazon had petitioned.
In 2024, Amazon purchased 348 acres of land near the retiring Sherburne County (Sherco) generating station, a large coal-fired station that is slated to be fully retired by 2030, in Becker, Minnesota. In a somewhat ironic twist, as Minnesota utility Xcel Energy Incorporated (NASDAQ:XEL) (Minneapolis, Minnesota) seeks to reduce its overall carbon emissions by retiring the plant and constructing new solar facilities on its grounds, Amazon was seeking to exempt 250 emissions-heavy diesel generators from certain regulatory oversight, claiming that as the company is not a utility and the generators will not be connected to the grid, they should be exempt from a rule requiring extra oversight of power generation projects. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more by viewing the related Xcel solar projects.
The Minnesota PUC disagreed, claiming Amazon needs to pursue a "certificate of need" and that the PUC would consider whether alternative forms of energy such as biodiesel would be more appropriate for backup generation.
Amazon's planned data center promises to be a large one with six planned buildings, each carrying total investment values of approximately $1 billion for facilities and equipment. The project potentially could kick off next year, putting the first building on track for completion in 2027. Construction schedules for further buildings could vary, but Amazon could have the entire complex up and running by 2029. Subscribers to Industrial Info's GMI Project Database can learn more by viewing the related project reports.
In a Friday statement, Amazon spokesperson Duncan Neasham said, "We appreciate the clarity provided by the Public Utility Commission today regarding our request and the regulatory framework and requirements related to backup generation. We remain committed to working collaboratively with state leaders to determine the best path forward for any future projects." According to the Washington Post, Amazon is helping to pass a bill supported by the industry group Data Center Coalition that would accomplish the company's Minnesota backup-generation goals by changing the state's regulatory law.
Becker is situated about 45 miles northeast of central Minneapolis, and some residents are concerned about an influx of data centers into the outlying Minneapolis communities. On the southern outskirts of the city, Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) is underway with the first two buildings of a planned five-building data center in Rosemount, while seven miles down the road in Farmington, data center developer Tract (Denver, Colorado) envisions a 2.5 million-square-foot complex of up to 12 buildings by late 2031.
Subscribers to Industrial Info's GMI Project Database can learn more by viewing the reports on the Meta and Tract projects.
Backup diesel generation has become something of a contentious issue between developers, the public and regulators. In addition, some Big Tech companies don't seem to be fans of the fuel either. Microsoft has set a goal of phasing out diesel from its power mix by 2030. A new data center from Microsoft in Wisconsin will use 40 backup generators that will burn ultra-low-sulfur diesel or renewable diesel and will be equipped with pollution-control technology. Subscribers can learn more by viewing the related project reports.
Last year, Maryland laid some of these issues to rest when Governor Wes Moore (D) signed SB-0474, known as the Critical Infrastructure Streamlining Act of 2024, into law. The bill alters the definition of a "generating station," exempting facilities used for on-site emergency backup from some permitting requirements and removing the need for developers to obtain a "certificate of public convenience and necessity" (CPCN). The law came after the state's Public Services Commission granted only provisional exemption from the CPCN process for up to 70 megawatts (MW) of a proposed 504 MW in backup diesel generation at a data center, and developer Aligned Data Centers (Plano, Texas) pulled out of the project. Aligned restarted the project after the 2024 legislation was passed, although it is unclear whether the company will employ all of the originally proposed 168 backup diesel generators in its final plans. Subscribers can learn more by viewing the related project reports.
Subscribers to Industrial Info's GMI Database can click here to view reports for many of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
In 2024, Amazon purchased 348 acres of land near the retiring Sherburne County (Sherco) generating station, a large coal-fired station that is slated to be fully retired by 2030, in Becker, Minnesota. In a somewhat ironic twist, as Minnesota utility Xcel Energy Incorporated (NASDAQ:XEL) (Minneapolis, Minnesota) seeks to reduce its overall carbon emissions by retiring the plant and constructing new solar facilities on its grounds, Amazon was seeking to exempt 250 emissions-heavy diesel generators from certain regulatory oversight, claiming that as the company is not a utility and the generators will not be connected to the grid, they should be exempt from a rule requiring extra oversight of power generation projects. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more by viewing the related Xcel solar projects.
The Minnesota PUC disagreed, claiming Amazon needs to pursue a "certificate of need" and that the PUC would consider whether alternative forms of energy such as biodiesel would be more appropriate for backup generation.
Amazon's planned data center promises to be a large one with six planned buildings, each carrying total investment values of approximately $1 billion for facilities and equipment. The project potentially could kick off next year, putting the first building on track for completion in 2027. Construction schedules for further buildings could vary, but Amazon could have the entire complex up and running by 2029. Subscribers to Industrial Info's GMI Project Database can learn more by viewing the related project reports.
In a Friday statement, Amazon spokesperson Duncan Neasham said, "We appreciate the clarity provided by the Public Utility Commission today regarding our request and the regulatory framework and requirements related to backup generation. We remain committed to working collaboratively with state leaders to determine the best path forward for any future projects." According to the Washington Post, Amazon is helping to pass a bill supported by the industry group Data Center Coalition that would accomplish the company's Minnesota backup-generation goals by changing the state's regulatory law.
Becker is situated about 45 miles northeast of central Minneapolis, and some residents are concerned about an influx of data centers into the outlying Minneapolis communities. On the southern outskirts of the city, Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) is underway with the first two buildings of a planned five-building data center in Rosemount, while seven miles down the road in Farmington, data center developer Tract (Denver, Colorado) envisions a 2.5 million-square-foot complex of up to 12 buildings by late 2031.
Subscribers to Industrial Info's GMI Project Database can learn more by viewing the reports on the Meta and Tract projects.
Backup diesel generation has become something of a contentious issue between developers, the public and regulators. In addition, some Big Tech companies don't seem to be fans of the fuel either. Microsoft has set a goal of phasing out diesel from its power mix by 2030. A new data center from Microsoft in Wisconsin will use 40 backup generators that will burn ultra-low-sulfur diesel or renewable diesel and will be equipped with pollution-control technology. Subscribers can learn more by viewing the related project reports.
Last year, Maryland laid some of these issues to rest when Governor Wes Moore (D) signed SB-0474, known as the Critical Infrastructure Streamlining Act of 2024, into law. The bill alters the definition of a "generating station," exempting facilities used for on-site emergency backup from some permitting requirements and removing the need for developers to obtain a "certificate of public convenience and necessity" (CPCN). The law came after the state's Public Services Commission granted only provisional exemption from the CPCN process for up to 70 megawatts (MW) of a proposed 504 MW in backup diesel generation at a data center, and developer Aligned Data Centers (Plano, Texas) pulled out of the project. Aligned restarted the project after the 2024 legislation was passed, although it is unclear whether the company will employ all of the originally proposed 168 backup diesel generators in its final plans. Subscribers can learn more by viewing the related project reports.
Subscribers to Industrial Info's GMI Database can click here to view reports for many of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
