Minnesota Power Generates Future Plans Despite Controversy

Minnesota Power, the Duluth-based electric utility, has been at the center of several controversies in recent months. In October 2022, Allete, Minnesota Power's parent company, was acquired in a deal that generated fierce criticism from those who argued that by taking the publicly-owned utility private, the new owners at Global Infrastructure Partners (a BlackRock subsidiary) would prioritize investor returns over the public's needs. Minnesota Power has also found itself embroiled in the controversy surrounding a proposed hyperscale data center project in Hermantown, just outside Duluth. While the identity of the company behind the secretive data center project was kept under wraps for a time, it was eventually revealed to be Google. Despite these controversies, Minnesota Power is forging ahead with plans for the future. In January 2023, the Minnesota Public Utilities Commission approved a site permit for the utility to construct an 85-megawatt solar project next to its Boswell Energy Center in Cohasset. Minnesota Power also announced plans to build a new transmission line between Duluth and Grand Rapids to help reduce grid congestion as more renewables come online and energy demand increases. While these moves are aimed at positioning Minnesota Power for the future, the Google data center project in Hermantown continues to face significant public opposition. Many are concerned about the data center's high electricity usage and its potential to drive up consumer utility bills, despite Minnesota Power's announcement that Google would help fund clean energy projects and contribute $5 million to boost energy affordability. Some states have even introduced bills to establish temporary moratoriums on hyperscale data center construction, though none have passed so far. In Minnesota, the St. Louis County Board of Commissioners are currently looking at ways to address concerns about the proposed Google facility.