More details emerge as Google, Hermantown work out data center agreements

Hermantown officials are in discussions with Google regarding a proposed data center, considering tax abatement and land development agreements. Economic Development Director Chad Ronchetti explained the terms, which include a 28-year tax abatement for Google, returning 85% of property taxes paid after the first $100,000, capped at $80 million in future value. Google proposes contributing $40 million to the school district and investing $130 million in public infrastructure.

The project has generated significant debate, with local residents expressing concerns about neighborhood impact, environmental effects, and grid strain. A citizen group, "Stop the Hermantown Data Center," has filed a lawsuit alleging the city violated state law and its comprehensive plan during the review process. Google's Liz Schwab, head of market development and policy for its data center division, addressed community concerns, stating the facility would use a waterless coolant system and adhere to Minnesota's clean energy goals, with backup generators used only for emergency purposes.

The Hermantown City Council recently tabled discussions on the abatement and development agreement, opting to await the completion of a revised Alternative Urban Areawide Review (AUAR). This updated environmental review includes more details about the project, which is still classified as light industrial development. The Minnesota Public Utilities Commission is currently accepting comments on the electric services agreement between Minnesota Power and Google, adding another layer to the ongoing process.