Google no longer seeks tax breaks for data center
Google withdrew its request for up to $80 million in property tax abatements for a proposed 1.7-million-square-foot data center in Hermantown, Minnesota, saying it will instead pay property taxes and provide alternative support to the local school district. Opposition to the project continues, while the city proceeds with infrastructure and permitting steps, including a transmission-line permit and an upcoming special-use permit review.
Google will no longer seek up to $80 million in property tax abatements for its proposed 1.7-million-square-foot data center in Hermantown. The company said it would pay property taxes and work with local leaders on meaningful direct support for Hermantown Community Schools, although the details of that support have not been released.
City officials, including Mayor Wayne Boucher, City Administrator John Mulder and Economic Development Director Chad Ronchetti, welcomed the change. The city estimates the project could generate $240 million in property taxes over 20 years and fund $130 million in infrastructure improvements, including water and sewer extensions. The City Council also approved a permit for Minnesota Power's proposed 1.6-mile transmission line to the site.
The Stop the Hermantown Data Center group said dropping the tax-abatement request did not change its opposition, citing concerns about the project's location and public process. The Planning and Zoning Commission is expected to consider the project's special-use permit, followed by City Council review.