Google decision not to take tax abatement in Hermantown raises questions for other state data centers
Google said it will not seek a previously approved tax abatement for its proposed data center in Hermantown, Minnesota. The decision could increase regional property tax revenues, but opponents say it does not address environmental, pollution, and property-value concerns; a related Google project in Pine Island faces a pending lawsuit.
Google will not pursue a tax abatement approved by Hermantown for its proposed data center. City Economic Development Director Chad Ronchetti said the project could generate as much as $240 million in regional property taxes without the incentive, including about $120 million for the county over 20 years.
The decision is drawing mixed reactions across Minnesota, where other communities are considering or developing data centers. Pine Island approved a roughly $36.5 million abatement for a proposed Google facility that is the subject of a pending environmental lawsuit. Harmony is also considering an ordinance for a smaller data center, while Mayor Steve Donney said the community chose not to offer tax incentives. David Derksen of Stop the Pine Island Data Center said Google’s decision does not resolve concerns about property values, environmental damage, PFAS, and air pollution.