Google secured approval for a proposed data center in Hermantown, Minnesota, following a unanimous vote by the city council on Friday, October 30. The decision clears a major hurdle for the 200-acre project after at least two postponed meetings and hours of public opposition. The approval comes despite three pending lawsuits and a separate inquiry into the facility's electricity supply, which requires approximately 500 megawatts of power.
Google Scales Down Project and Withdraws Tax Break Request
The approval comes with significant changes to Google's original proposal. The company reduced its plan from four buildings to three data center structures spanning approximately 1.66 million square feet. Google also capped building heights at 33 feet and agreed to monitor nearby private wells.
Google withdrew an earlier request for up to $80 million in property tax breaks. The revised arrangement is now expected to generate about $3 million in annual property tax for the city. A separate decommissioning agreement valued at $210 million is in place.
City Council Approves Development Agreement During Late-Night Meeting
The council approved a development agreement, a special use permit, and provisions for decommissioning the site if construction is abandoned or the facility eventually closes. The meeting, which was capped at 85 people and offered a livestream, ended shortly before midnight.
Council member John Geisler clarified the scope of the decision: "What we've done tonight is not about AI. It's not about big tech. It's not about software. It's about a project here in Hermantown, a land use application, and agreements that are associated with that."
Three Lawsuits Challenge Zoning and Environmental Review Process
Hermantown's vote does not permit Google to immediately begin construction. Three lawsuits filed by The Minnesota Center for Environmental Advocacy and Stop the Hermantown Data Center challenge the city's zoning process and ownership of the land. The lawsuits also demand the project's environmental review.
The proposed development is located in a rural residential area outside Duluth. Each of the three approved buildings would be larger than six football fields.
Minnesota Public Utilities Commission Approval Still Required for Power Supply
Google still needs approval from the Minnesota Public Utilities Commission on power consumption, despite its agreement with Minnesota Power. The project requires about 500 megawatts, comparable to the combined demands of homes in Minneapolis, St. Paul, Duluth, and Rochester, according to the Citizens Utility Board of Minnesota.
Google is also pursuing a separate data center project near Pine Island, close to Rochester. That proposal is now subject to a more extensive environmental review following a legal settlement.
FAQ
What did Google's Hermantown city council approve on Friday, October 30?
The Hermantown city council unanimously approved Google's proposed data center project on Friday, October 30. The approval includes a development agreement, a special use permit, and decommissioning provisions for the 200-acre site with three data center buildings spanning approximately 1.66 million square feet.
Why did Google withdraw its tax break request in Hermantown?
Google withdrew an earlier request for up to $80 million in property tax breaks as part of negotiations during the approval process. The revised arrangement is now expected to generate about $3 million in annual property tax revenue for the city, with a separate decommissioning agreement valued at $210 million in place.
What regulatory approvals does Google still need for the Minnesota data center?
Google still needs approval from the Minnesota Public Utilities Commission for the project's power consumption, despite its agreement with Minnesota Power. The facility requires approximately 500 megawatts of power. Additionally, three lawsuits filed by The Minnesota Center for Environmental Advocacy and Stop the Hermantown Data Center challenge the city's zoning process and demand environmental review.
