Amazon cancels Becker Minnesota data center project in a surprising move that halts what would have been a multibillion-dollar investment. The decision deals a blow to local ambitions and raises questions about the future of tech infrastructure in the state.
The announcement comes amid legislative changes in Minnesota that include rolling back tax incentives previously granted to data center developments. The move appears to have tipped the scales for Amazon, which cited growing uncertainty around permits and utility agreements as the key reason for its withdrawal.
“We initially moved forward based on expected timelines for permits and utility coordination,” Amazon said in a statement. “With those timelines now unclear, we’re redirecting resources to projects that can deliver capacity to our customers more quickly.”
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Ripple Effects for Local Stakeholders
When Amazon cancels Becker Minnesota data center project, the local economy feels the shock. The project was expected to create thousands of construction jobs and become one of Xcel Energy’s largest customers.
Xcel Minnesota President Ryan Long declined to comment directly, citing confidentiality, but acknowledged the company is reviewing its obligations in response to Amazon’s decision.
In Becker, city officials were left disappointed. “We are certainly disappointed in their decision not to proceed at this time,” said City Administrator Greg Lerud. “We hope Amazon reconsiders as it evaluates future development sites.”
Tax Policy and Tech Tensions
Minnesota lawmakers are currently reshaping how the state handles tax breaks for large data centers. A recent legislative proposal eliminates the sales tax exemption on electricity for such facilities — a change that may have influenced why Amazon cancels Becker Minnesota data center project.
The company also recently lost a battle before the Minnesota Public Utilities Commission over installing 250 diesel backup generators — a conflict that highlighted growing tensions between tech infrastructure and environmental regulation.
The Bigger Picture: A Shifting Data Center Landscape
Amazon cancels Becker Minnesota data center project amid a national surge in data center development driven by artificial intelligence and cloud computing demand. However, many of these projects are increasingly clashing with state regulations and community concerns.
Other tech giants like Meta and Microsoft are still moving forward with Minnesota projects, but Amazon’s withdrawal may signal a shift in how aggressively companies pursue data center expansio
