Environmental group challenges ALLETE acquisition approval over data center disclosure

The environmental group CURE is challenging the Minnesota Public Utilities Commission's recent approval of the acquisition of ALLETE, the parent company of Minnesota Power, by private equity firms BlackRock and CPP Investments. CURE alleges that Minnesota Power employees were actively discussing a proposed data center project in Hermantown, Minnesota, prior to and during the acquisition hearings, but failed to disclose this information to the commission. This alleged non-disclosure is the basis for CURE's petition, which seeks a reassessment of the acquisition approval.

Hermantown resident Emma Richtman, joining CURE, voiced concerns about the transparency of Minnesota Power, stating that the proposed data center, if approved, would significantly impact the community's power grid and potentially lead to increased rates for residents. She expressed apprehension that private equity ownership, coupled with "closed-door data center talks," prioritizes maximum profits over community interests.

CURE claims that documents from 2024 show Minnesota Power was "actively shopping around a data center in Hermantown" while the acquisition was underway, contradicting their testimony during the approval process. The group argues this raises conflict of interest concerns, especially given BlackRock's recent involvement in developing data center infrastructure across the country.

Minnesota Power declined an interview but stated in a written response to CURE that data center topics were addressed generally during proceedings and the Hermantown project remains a developer's proposal. They recommend the commission deny CURE's petition, which the commission has 60 days to decide upon.