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Affordable Utilities

Bottom-line savings for energy users. 

Minnesota is one of very few states in the U.S. to exempt energy used in the manufacturing process from sales tax. The exemption includes natural gas, electricity and other utilities, which means significantly lower rates for thousands of businesses.


Industrial and Agricultural Production

Electricity, gas, steam, or water used or consumed in agricultural or industrial production is exempt from sales and use tax if it is necessary to produce a particular product and in excess of the average climate control or lighting for the production area.

Qualified Data Centers

Electricity used to operate a qualified data center is exempt after the project is certified by the Minnesota Department of Employment and Economic Development. 



Two providers supply most of the commercial and industrial electricity used in the Greater MSP region: Xcel Energy and Great River Energy, with its network of cooperatives.  Municipal providers are available in some locations and can be found at http://www.mmua.org/about/mn-municipal-utilities-map.


Low-Cost Industrial Rates

The Twin Cities has a well-earned reputation for highly reliable and affordable electricity — especially when compared to other regions of the country.

Low-Cost Commercial Rates

Competitive Natural Gas

Minnesota’s natural gas prices are lower than most states, giving Greater MSP companies a major cost advantage. Two major natural gas providers, CenterPoint Energy and Xcel Energy (the fourth largest utility company in the nation), service the 16-county Greater MSP region.


Broadband Access

The Greater MSP area is home to a rich supply of high-density metro fiber infrastructure and diverse long-haul fiber routes. As such, the Minneapolis-St. Paul metropolitan area can serve as home to nearly any organization across a wide variety of vertical markets that require data, voice or video services.

Minneapolis-St. Paul connectivity highlights:

  • 10 long-haul networks run through the region, including a direct route via Chicago (which also connects to Seattle) considered to be one of the top Internet peering points in the U.S. 
  • Faster speeds than New York City to Washington D.C., and Miami to Atlanta (ie, lower latency than these markets)
  • Able to support virtually any latency-sensitive application
  • More than a dozen different telecommunications companies provide a variety of high bandwidth services
  • Network upgrades have kept pace with advancements in data transport services
    Source: NEF

Water Services

Greater MSP is one of the most water-rich regions in the nation. Hundreds of municipal water supply systems serve the Twin Cities’ commercial, industrial and residential customers.

The Mississippi River and three aquifers provide most of the water consumed in the 16-county Greater MSP region. The region is unique among major metropolitan areas in that it rests atop a groundwater flow system that provides abundant groundwater and surface water supplies, and enables the metro to manage its own drinking water resources.

Metropolitan Council Environmental Services provides wastewater services to a large portion of the region. It consistently achieves high sustainability standards while holding rates 40% below the national average – significantly reducing purchased costs.

Renewable Energy

Minnesota ranks 7th in the nation for installed capacity for electricity generated from wind. It’s also a leading producer of ethanol.

Two nuclear plants, both owned by Xcel Energy, generate 22 percent of the electricity produced in Minnesota. Coal-fired power plants account for 50 percent of energy produced. The Twin Cities region also operates two petroleum refineries.

Sources: Minnesota Department of Revenue, Sales Tax Factsheet, Utilities Used in Production, http://www.revenue.state.mn.us/businesses/sut/factsheets/FS129.pdf. American Wind Energy Association, Wind Energy State

Facts, http://www.awea.org/resources/statefactsheets.aspx?itemnumber=890 . Nuclear Energy Institute, Fact Sheets, Minnesota, http://www.nei.org/CorporateSite/media/filefolder/Backgrounders/Fact-Sheets/2015-Minnesota-State-Fact-Sheet.pdf?ext=.pdf.

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