Tax breaks for data centers? Minnesota cities weigh incentives to lure the mega-projects

Hermantown, Minnesota, is poised to make a significant decision regarding a proposed Google data center. The Hermantown City Council is expected to vote on a proposal to extend tax incentives to the tech giant. This initiative is touted as the largest private investment in the city's history and is tied to a prior zoning change for the proposed data center, which occurred on October 20, 2025. The incentives are structured to secure funding for city and school infrastructure, aligning with the development of the data center. The article highlights community interest, with residents having watched the earlier city council meeting on the zoning change. The impending vote signifies a crucial step in potentially bringing Google's data center operations to Hermantown.