Senator Grant Hauschild (DFL-Hermantown) advanced legislation Tuesday in the Senate State and Local Government Committee aimed at strengthening transparency and public trust in the development of large-scale data center projects across Minnesota.

The bill, Senate File 4548, prohibits local elected officials from entering into non-disclosure agreements related to potential data center development. The proposal comes in response to concerns raised by constituents and local leaders following recent development discussions in Northern Minnesota.

“Communities deserve to understand what is being proposed in their backyard, especially with projects of this size,” said Sen. Hauschild. “What we saw in our region made it clear that when transparency is missing early in the process, it creates confusion and erodes trust. This bill is about making sure that does not happen.”

Hauschild pointed to experiences in Hermantown and St. Louis County, where local elected officials were asked to sign confidentiality agreements in order to participate in early-stage conversations around potential data center projects. He emphasized that those situations can place local leaders in a difficult position as they balance economic opportunity with their responsibility to be open and accountable to the public.

“Local officials should not have to choose between being part of the conversation and being transparent with the people they represent,” Hauschild said. “This creates a clear, statewide standard so no community feels pressured to sacrifice transparency just to stay competitive.”

The legislation builds on work completed last session, when the Minnesota Legislature passed a comprehensive regulatory framework for data centers that included strong utility consumer protections, high energy standards, and oversight of water usage by the DNR, among other things. Hauschild said this bill addresses a gap in the process that became evident as new proposals emerged.

“These are some of the largest and most complex projects we will see in our communities,” Hauschild said. “We put strong guardrails in place last year. Now we are making sure the process itself reflects the same level of accountability.”

Senate File 4548 passed out of the Senate State and Local Government Committee and now moves to the Senate Judiciary and Public Safety Committee for further consideration.